Hawaii Island Real Estate Update and Issues Affecting Buyers

In a nutshell-Rates are holding steady, the list to sale ratios are under 97% in most neighborhoods of Hawaii Island and more inventory is coming on the market. Mortgage rates are not expected to fall below 6% for this year, so buyers have to get used to these rates.
A few key stats:
North Kona hit a new median price at 1.5 million
List to sales price in Hilo is 91%, the lowest on the island.
Days on market is averaging 45 in most markets, but is up to 119 in Waikoloa Village.
Joe Eagan, Wynn and Eagan Team, reported that the Fed is expecting the 30-year fixed-rate mortgage to end 2024 at 6.4%, up from its 5.9% prediction earlier this year. Economists say strong job numbers and hotter-than-expected inflation data are leading financial markets to forecast a less aggressive rate-cutting path by the Federal Reserve. The Fed this week kept its benchmark interest rate steady but continued to suggest that three rate cuts are coming.
In this video, we also discuss pending legislation that will affect homes used for short term vacation rentals, but keep an eye on the new State bills that discuss rezoning residential areas which will affect homeowners ability to use their homes for any type of rental income.
Also, insurance companies are pulling out of Hawaii, prices are going up and the state is working on ways to help, but putting the burden on buyers who have to get mortgages to help pay.
Here is our discussion from a previous video about the Transient Accommodations Rental Bill:
• Hawaii County Transien...
If you would like to reach our 365Hawaii Team, email Julie Ziemelis at [e-mail]. Also, ask for a free West Hawaii or East Hawaii Moving Guide!
Amber Haley- Real Broker -East Hawaii
Delania Branham-Real Broker-West Hawaii
Lance Owens, LUVA, West Hawaii
Jana Mahoney, KW Big Island, Waikoloa/Waikoloa Village/ North Hawaii
Andy Madrid, KW Big island, South Hawaii, HOVE, Volcano and Ka'u
Julie Ziemelis | RS-85062
REAL Broker
[e-mail]
808-785-2898
www.365hawaiiliving.com

[@vuaeco]

I appreciate all of you guys for your taking the time to make this video. Thank you.

[@365HawaiiRealEstateInfo]

Our pleasure! Thanks for watching!

[@kfbob364]

Why would they cut the rates when inflation is at 3.8%, which we know is a vast understatement of the reality.

[@aaroncarver7390]

Thanks for helping us get clearer on property prices and statistics in many areas of interest, Thanks for your time and knowledge!

[@365HawaiiRealEstateInfo]

Glad to help

[@johnsonrepp]

Any opinions on Hawaiian Beaches subdivision? Considering on buying an investment property in that subdivision specifically because it has metered water, paved roads/driveways and mailboxes .

[@365HawaiiRealEstateInfo]

I will try and get Amber and Andy to discuss that subdivision more. There IS something to be said for all the amenities like water and paved roads!

[@johnsonrepp]

@@365HawaiiRealEstateInfo I look forward to it. Thank you.

[@meathook2448]

You really have to be desperately looking for something positive to try to make 6% interest sound like even remotely a good thing.

[@365HawaiiRealEstateInfo]

Actually the median rate is 7% when you look at the last thirty years or so. AND when the rates were 3%, we had alot of crazy with buyers having to bid on numerous homes to get beaten out time and again. The current rates make for a more normalized market. But of course..who doesn't want 5%? Wait til 2026.