Happy New Year!

The year 2014 promises to be an exciting new year in (Hawaii) real estate.  Economists are predicting a 4th year of continued growth since the economic crisis. With historic low mortgage rates still prevailing and on going strength in tourism, construction and labor markets locally will push the real estate market to higher levels. Many economic components will soar to new levels  according to the Department of Business, Economic Development and Tourism(DBEDT).Although the market may not see to fevered pace as we saw in 2013, it is good news for both Buyers and Sellers.  Sellers still will see price gains again this year and Buyers will have a little more negotiation room.

Many sectors in Hawaii will see growth. Construction will be one of the leading sectors in Hawaii as more permit applications are being filed and the rail transit project increases the labor force required for the construction industry. Tourism, which has been unbelievably strong for the past several years, will see continued growth, but slightly tapered from 2013 as we reach current capacity for hotel rooms and airline seats. Personal incomes of Hawaii residents will increase as well which means an even better year for retailers.

The continued recovery in tourism, construction, labor and real estate, will mean an increase in single family homes and condominiums sale prices as well as rental rates.

For 2013, the median sales price in single family homes increased over 14% from January to end of December.  That is a stark increase in a year.  However, it has not meant a full recovery for all areas since the economic downturn.  Some neighborhoods and condominiums are still selling at a discount to what they were during the economic downturn.  Smart Buyers will continue to look for these values.  As statistical examples look at our latest posts on the Koolani and the Ilikai condominiums.  Sellers are in a position to lock in their profits or move into a another property which will be take advantage of the gains going forward.

As always, do not hesitate to contact me by email or phone if you have questions about your Hawaii real estate needs!
Mahalo,
Malia Leilani Meenderman
Broker in Charge
Phone: 808-394-9779