Hawai’i Real Estate Market Could Be ‘Normalizing’ As 2022 Rolls On

  • Karen E. Bail
  • 07/22/22

Is a change on the way for Big Island real estate?

According to a recent piece appearing in Pacific Business News, the Big Island real estate market—and the entire state’s market at-large—may be returning to its pre-pandemic pace and nominative rate of sales.

Per the article, overall demand for homes has been somewhat cooled by a combination of higher interest rates and general uncertainty, to say nothing of many buyers’ ongoing wariness around the escalating prices of the past two-plus years.

“We’re still seeing multiple offers, but there might be four versus 10. I would say that’s anecdotal, but definitely something we’ve started to see in the second quarter,” said Chuck Garrett, Senior VP at Corcoran Pacific Properties.

And lest we forget—while the Big Island remains unique in the world, both in terms of location and of desirability, we will also still follow at least some of the more-widely seen national trends with housing, and the current market is no exception. Sales have definitely slowed nationwide, to the tune of -5.4% (from May to June), and the fifth consecutive month of such declines. Meanwhile, the median sales price for the country hit a new record-high of $416k in June, according to data released by the National Association of Realtors®.

Along similar lines, Big Island home sales have definitely slowed down some in 2022 thus far, yet the median sales price remains as high as ever, particularly in many of our most coveted neighborhoods.

So then, with all that said: what’s ahead for the rest of 2022?

While no one can say for certain, we’d agree that it’s likely a safe bet to imagine the overall sales picture returning to 2019 levels—which were still outstanding! Think of it like falling back in line to a more-normative rate of growth per 2019’s upward trajectory, thus ‘normalizing’ back to a typical rate.

“It’s hard without a crystal ball, but we just follow a lot of economists and look at our own numbers,” Garrett said. “That is what we’re projecting and preparing for. While that’s a jolt from this surge period, it’s also a return to what could be called ‘normal’ and everybody just needs to adjust accordingly. We all were thriving in those pre-Covid markets, and we’ll continue to do so… particularly on Oahu and Big Island, where there is a pretty even mix of residential sales and off-island investors.”

We know one thing for sure—wherever the market goes, we’ll be there to follow and give you all the latest updates from the field!

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Karen provides the most current and accurate market information, tapping into her vast network of industry professionals. She continually draws from her extensive marketing experience to offer creative marketing strategies and produce impeccably high-quality marketing materials.

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