Hawaii real
estate is Booming due to retirement of Baby
Boomers
Despite
the “buyer’s market” that much of the United
States is currently facing, Hawaii Real Estate
continues to be a “sellers market” as an
increasing number of baby boomers are retiring
in Hawaii and the housing inventory has been
down for 10 straight months. In addition, with
property taxes being extremely low and very high
conforming loan limits, real estate sales in
Hawaii are booming.
In 2006, the first of about 75 million baby
boomers began retiring, marking this as an
important year for Baby Boomers and for the
American economy. Over the next 20 years the
remaining baby boomers will be looking for a
place to retire, and as a result will be shaping
the way the real estate market and many other
aspects of our economy fluctuate.
Hawaii Realtor Tony Kawaguchi with RE/MAX 808
Realty on Oahu states, “I get calls every day
from people who want to buy their retirement
home in Hawaii. It’s like a dream for them to
live in paradise, and it’s amazing how much
money some of these boomers have, and how easily
they will buy a million or $2 million house.
I’ve sold a $2 million house sight unseen!”
With a single family median home price of
$643,500, Hawaii Real Estate isn’t exactly
cheap, but extremely low property taxes and
very high conforming loan limits are helping
to propel home sales in Hawaii, despite a
slowdown in real estate for the rest of the
country.
“Hawaii Real Estate is still going strong, and
will probably go even higher with all the baby
boomers moving here. They love the climate and
the slow pace,” says Kawaguchi.
Meanwhile, the Hawaii condo market is also hot.
In some areas of Oahu, condo prices are up 46%
since last year. The average Oahu condo is on
the market only 40 days, making it difficult for
some buyers to find a decent property. The
median price of condos in Oahu was $321,000 in
March.
But the most telling data is the inventory. With
inventory down for 10 months straight many
sellers are seeing their properties appreciate
very quickly, and some have even increased list
prices. Hawaii real estate may be one of the
only seller’s markets in the country.
“If even 1/10 of 1% of the boomers moved to
Hawaii to retire, it would create a massive boom
in Hawaii real estate. It’s a small island state
and we only have about 1700 single family homes
for sale right now in Oahu, so even a few
hundred buyers a year makes a massive difference
in our market,” says Kawaguchi.
The retiring boomers will be changing and
driving many areas of the U.S. economy and
desirable areas like Hawaii are likely to see a
huge influx of them over the next several years.
For those looking for the next big opportunity,
an investment in Hawaii real estate may be a
great long term option.
