As you might have heard, real estate on the Big Island – and across the Aloha State in general – are having quite a moment so far in 2021! Homes in the northern and western areas of the island of Hawaii have been selling like hotcakes, with the median sales price hovering around the $800k mark for these regions in particular. Keep in mind: here we reference the median sales price, or the value of the midpoint between all the available sales numbers, because it’s far more indicative of the overall market trend than the average, as the average is more prone for outliers on either end of the spectrum to skew the overall numbers.
Furthermore, the lot size for residential properties has most definitely been on an upward trend over the course of 2021 thus far: lots under one acre have reached a median sales price of around $775k in the north and western parts of the island for the calendar year, whereas residential lots over one acre in size are now coming in at a cool $1.3 million, per the median price through August.
Exciting times to be sure! But it also begs the question: how long will the 2021 real estate market remain so scorching hot?
While it’s true that the state of Hawaii has historically always stood tall as one of the more exclusive and desirable markets across the world, owing to its abundant desirable location and natural beauty, it’s also true that there is a natural ebb and flow to the housing market. What goes up, must come (at least somewhat) down.
Unfortunately, any attempt to put an exact timeline on however long such a seller’s market can last would be akin to trying to ‘time’ the stock market for maximum returns – nearly impossible, not to mention not a very good idea for your financial well-being! Ultimately, there are several interrelated factors that work together to influence the overall market’s direction, including:
Global and local trends
The current availability of homes on the island
Current interest rates
For buyers, all these interrelated factors can make it difficult to forecast the ‘best’ time to buy – and especially in a locale as gorgeous as the Aloha State! Having said that, deciding on the right time to purchase your home has a lot more to do with factors that are both more predictable and more within your control: namely, your own financial outlook and housing goals. Working to align and harmonize your budget and your goal is a far more critical aspect to securing the home of your dreams than attempting to predict the timing of a coming market cooldown.
Alternatively, as a seller, the time is definitely right to sell your home on the Big Island! While it’s extremely likely that Hawaii’s housing market will always remain a cut above the competition, it’s also true that the recent housing boom will cool off at some point in the future – because that’s what all markets do! In the month of August, 35% of all single-family home sales were bid-ups, or homes that sold for above their predicted market value. With buyers literally lining up for their chance at living in paradise, there’s no time like the present to maximize your potential returns.
Wondering how to make your Hawaii housing dreams come true – buying or selling? Contact me today and let’s get to work on helping you find your place in paradise!