Since 1985, the Honolulu Board of Realtors has been tracking sales prices. Over the last 34 years, the average price of single-family homes on Oahu has increased by 346.2%. That’s an average of 4.64% per year. That’s a good rate of return. Granted, prices fluctuate, and markets experience downturns. But, if you are buying a property in Hawaii with a long view in mind, it’s a safe bet. A good bet.
Hawaii Real Estate – Then vs Now
Imagine if you bought your home on Oahu in 1985 and held on to it. The average sales price back then was roughly $205,000. The 2018 average was approximately $991,000. Think of the potential equity you would have from buying and holding onto your property. More importantly, think of the opportunities that equity presents. Equity can be used to buy investment properties, fund retirement, or pay for college. Equity translates to opportunity.
I don’t know many people who regret buying Hawaii real estate. But, I know plenty who are glad they did. They’ve built wealth. Financed college. Bought second homes. They’ve raised families and built secure futures for the next generation.
Historically Low Interest Rates
Buying a house can be challenging. Even scary. It was no less so in the 1970s and ’80s. Think Inflation. Recession. Double-digit interest rates. There is always a degree of uncertainty in the market. Always. But, ask anyone who bought and held onto their property over time if they regret their decision. I can assure you that the answer is almost always, “No.” Frankly, the regret most people have is that they didn’t buy more properties, or worse, at all. Don’t look back 10, 20, or 30 years from now and regret not buying at a time when interest rates are historically low. Jump in, and years from now, you’ll be glad you did.