Experts: Hawai'i housing "affordability window" closing, buy now - Hawaii News Now - KGMB and KHNL

Experts: Hawai'i housing "affordability window" closing, buy now

Stefan Pampulov Stefan Pampulov
Paul Brewbaker Paul Brewbaker
Carl Bonham Carl Bonham

Local economists say prospective home-buyers are running out of time to purchase property in Hawai'i before prices continue to tick upward. 

A new report by Homes.com indicates home sale prices in Honolulu have surged by 23 points, based on their Local Market index value calculations. 

"Our research is showing that we are doing very well in Hawai'i.  The market's been up, but it's approximately 10% for the past year," described Stefan Pampulov, the Chief Operating Officer for Collateral Analytics, which develops real estate analytic products and tools to support financial institutions, institutional and retail investors.

Even with the boost, experts say this is one of the best times to buy in Hawai'i for three reasons: mortgage interest rates are historically low, many household incomes have rebounded from the Recession, and home prices haven't hit their peak – yet.

"The window of housing affordability in Hawai'i opens for most families about five or six times in life, so this is one of the great windows of opportunity," explained Paul Brewbaker, Ph.D., an economist with TZ Economics.

Hawai'i and California are the most expensive places to own a home in the country.  After plunging in 2008, O'ahu's home values have climbed back up to a median of $647,000, according to the Board of Realtors.  The 2012 Census indicates the median household income is about $71,000 a year.  

"Waiting for Hawai'i and California to be cheap housing markets is a waste of time – it's always going to be expensive, the question is only, ‘How crazy expensive is it going to be?'" said Brewbaker.

Local economists say home prices rapidly increase in Hawai'i because demand is almost always greater than the supply.

"One of the key things to increasing affordability is to build enough homes.  It doesn't mean necessarily building affordable homes, it just means building homes that people would like to buy," described Economics Professor Carl Bonham, the Executive Director of the Economic Research Organization at the University of Hawai'i.

Bonham say that's why developers are pushing to build condominiums as quickly as possible in the Kaka'ako area.  At an average price of $350,000, they say condos are the entry-level home for most Hawai'i residents.

"Don't wait!  Really, we are looking at a situation where affordability is going to be increasingly difficult – mortgage rates are headed up, home prices are definitely headed up," cautioned Prof. Bonham.

Bonham says our housing market is very active, but getting "increasingly tight", because there's very little for sale.

Homes.com report: http://blog.homes.com/2013/08/the-homes-com-local-market-index-expands-to-include-300-markets-250-markets-in-the-u-s-gain-in-home-prices/

Follow Mileka Lincoln:    

Copyright 2013 Hawaii News Now. All rights reserved. 

  • Hawaii News Now headlinesNewsMore>>

  • Trump asserts Russia not targeting US, contradicting intel

    Trump asserts Russia not targeting US, contradicting intel

    Wednesday, July 18 2018 12:31 AM EDT2018-07-18 04:31:41 GMT
    Wednesday, July 18 2018 6:05 PM EDT2018-07-18 22:05:14 GMT
    (AP Photo/Andrew Harnik). President Donald Trump speaks to members of the media as he meets with members of Congress in the Cabinet Room of the White House, Tuesday, July 17, 2018, in Washington. Trump says he meant the opposite when he said in Helsink...(AP Photo/Andrew Harnik). President Donald Trump speaks to members of the media as he meets with members of Congress in the Cabinet Room of the White House, Tuesday, July 17, 2018, in Washington. Trump says he meant the opposite when he said in Helsink...

    Rebuked as never before by his own party, including a stern pushback from usually reserved Senate Majority Leader Mitch McConnell, the U.S. president sought to end 27 hours of recrimination by delivering a rare admission of error.

    More >>

    Rebuked as never before by his own party, including a stern pushback from usually reserved Senate Majority Leader Mitch McConnell, the U.S. president sought to end 27 hours of recrimination by delivering a rare admission of error.

    More >>
  • Free wifi hotspots being rolled out to communities statewide

    Free wifi hotspots being rolled out to communities statewide

    Wednesday, July 18 2018 6:02 PM EDT2018-07-18 22:02:45 GMT
    Free WiFi is now available in certain areas across the state, and more locations are on the way. (Image: Hawaii News Now/file)Free WiFi is now available in certain areas across the state, and more locations are on the way. (Image: Hawaii News Now/file)
    Free WiFi is now available in certain areas across the state, and more locations are on the way. (Image: Hawaii News Now/file)Free WiFi is now available in certain areas across the state, and more locations are on the way. (Image: Hawaii News Now/file)

    Free public WiFi is now available in select areas on Kauai, Maui and Molokai, with more locations coming soon, state officials said.

    More >>

    Free public WiFi is now available in select areas on Kauai, Maui and Molokai, with more locations coming soon, state officials said.

    More >>
  • Thai boys recount cave rescue: Voices in dark, then 'hello'

    Thai boys recount cave rescue: Voices in dark, then 'hello'

    Wednesday, July 18 2018 3:11 AM EDT2018-07-18 07:11:51 GMT
    Wednesday, July 18 2018 5:45 PM EDT2018-07-18 21:45:48 GMT
    In a press conference on Wednesday after they were released from the hospital, the boys apologized to their parents. (Source: NBT WORLD/CNN)In a press conference on Wednesday after they were released from the hospital, the boys apologized to their parents. (Source: NBT WORLD/CNN)

    Divers found the soccer team 10 days after they were trapped in a flooded cave, and rescuers eventually extracted them over three days, concluding July 10.

    More >>

    Divers found the soccer team 10 days after they were trapped in a flooded cave, and rescuers eventually extracted them over three days, concluding July 10.

    More >>
Powered by Frankly