While Big Island Real Estate prices have increased for the 12 months, the trend has exploded in the first quarter of 2021 due to several factors including historically low mortgage interest rates and the results of the Covid-19 Pandemic. In the first quarter of 2021 the average sales price on the Big Island is up 38.3% at $1.537 million from $1.11 million in the first quarter of 2020. In addition, the current inventory has decreased by more than 64% when comparing Q1 2020 to Q1 2021, while the volume of sales has increased more than 26.55 over the same period. We have certainly shifted to a Seller’s market!
High Demand for Big Island Real Estate
Properties are in high demand and are selling quickly with multiple offers and over asking price. Big Island Realtors are reporting a bustling increase of sales with any property that is in good condition and priced well. This surge is happening across all price ranges and all categories, including single-family homes, condominiums, and vacant land.
With all of this increase in activity, buyers must be ready to go and move quickly when they find the right property. Having a preapproval letter is a must, so make sure to contact a mortgage broker and provide them with the information necessary to become prequalified for a loan if you need one. As usual, cash is king and may still bump out your offer even if preapproved.
As there may be multiple offers in this market, be ready to bring your best and highest offer you are willing to present. It may be in your interest to come in over asking with the highest down payment you can. A high earnest money deposit may make Sellers take your offer more seriously as well. Omit as many contingencies as you are willing such as staking or surveying paid by Seller. Don’t be discouraged if you miss out on a few properties. Keep trying and you will succeed!
Why the Demand for Big Island Real Estate?
Here are just a few I can think of:
- Low Mortgage Rates
- Low Hawaii County Real Estate Taxes
- Cold winter and Covid-19 depression is making buyers seek warmth, sunshine, beaches and the slower pace of living that we have here on the Big Island.
- Pent up consumer demand for Big Island Real Estate
- Remote workers are on the rise and can now work from home.
The Big Island of Hawaii has a lot going for it. Low property taxes, warm weather year round and incredible recreation and beaches make this island one of the most desirable places to live on earth! It makes a lot of sense that the stress of indoor confinement due to the pandemic has driven our real estate market on a huge upward trend. I am seeing a huge influx of Mainland Buyers that are seeking a better quality of life and healthier living conditions in these turbulent times. We are clearly on the upside of the housing cycle.