There has been lots of talk about the rising home prices in Hawaii as of lately. With the latest report out from the Honolulu Board of Realtors showing the median price in June 2017 hitting $795K, you might wonder where are these prices going. Certain parts of the island have always commanded higher prices such as Kailua, Hawaii Kai, and Kaneohe, but as of recently, many buyers have started to take notice of the values out west in areas such as Makakilo, Kapolei and Ewa Beach. In comparison to the other parts of the island, the west is looking fairly affordable. The west is often known as the hotter, dryer side of Oahu. One of the larger issues with buyers seems to be the concern with traffic. This is absolutely an issue depending on your drive times, and we are still awaiting the start of the light rail system that will begin in the Kapolei/Ewa borders and head towards town.
The interesting part about all this is from a real estate perspective is the value of the properties. You can come into these communities and still buy a newer, larger home for less money than in other parts of Oahu. Most properties in town will be smaller in size, older, and range closer to the $1M mark. In comparison, you can buy a larger house in Ewa Beach that was built within the last 10 years in the $600K range. When you stop and think about getting larger, newer home and saving hundreds of thousands of dollars, the drive becomes less of a concern. This is in addition to the fact that affordable townhouse can still be purchased in the $300-$400K range. Some of the brand new townhouses in Hoakalei are now reaching the mid $600 range, but there are other less expensive options as well. Small studios in town with no parking can be the same price is these larger 2 bedroom properties with garages.
With that said, we are now seeing a huge explosion of commercial businesses scrambling to service these growing communities. This means that with more business bringing goods and services out west, the residents will not have to travel into town as often. Of course, your job still dictates the commute, but with so many new business opening, there will be many jobs that need to be filled. If you are looking, you can truly find a house, job, and community that is all in the same area.
The interest rates continue to stay at 40-year lows. The home prices continue to rise historically over the last 5 years but remain stable. The prices of homes are growing slowly and not spiking up and down as it has done in years past. This is a great time to reevaluate purchasing your own slice of paradise. The rental market is on the rise with prices usually outpacing a mortgage so buying usually makes better financial sense.
If you want more information about the west or anything island-wide, please do not hesitate to get in touch with me.