Hawaii Real Estate Outlook & Market Trends for 2020
It’s been a great year in 2019. There is definite success in the Real Estate Market in Hawaii. The Outlook for 2020 brings more opportunity and positive growth in Hawaii and the Nation. Trends appear to be positive for the upcoming year. Here are some interesting patterns for the Real Estate Industry in 2020.
Low Interest Rates Continue
Buyers will lock in historically amazing rates! View Current Mortgage Rates
Inventory Will Be Tight
Housing inventory will remain limited for much of 2020 due partly to interest rates and record-high home ownership tenures. The average homeowner is staying in their home 13 years which is up from 8 years in 2010.
Home Prices will Keep Rising
Home prices will slowly continue their climb upward largely due to tight inventory and high demand. According to CoreLogic, home prices forecast in 2020 should go up by 5.6% by next September, which is up from 3.5% this year.
Demand for Building New Construction Homes
New home construction is needed to replace homes which have been destroyed by the horrific fires in California and Hurricanes in Florida. There is a wave of Buyers coming to Hawaii for a fresh new location to re-start their lives. Hawaii is planning to building more homes to accommodate this incoming population.
Return to the Suburb
Census data is showing the “back to the city” trend of the early 2010’s is shifting. City population growth has declined while suburban growth has increased. Millennial’s are moving because of affordability. Since they are now having children, they prefer the stability of the suburbs but they want city type amenities.
Greater Demand for Affordable & Smaller Homes
Millions of aging Seniors will impact the market in the coming years. There is a definite need for Affordable Homes as most Seniors require downsizing and cost saving.
The youngest Generation Z Buyers have the strongest demand for Affordable and Smaller Homes. They notably have acquired the most mortgages in 2019 above all other groups. Gen Z’s look for smaller and more affordable homes in order to recuperate from student loan debt. The innovation of the Tiny Home fits this affordability.
In Hawaii the population is expanding and new jobs and workforce require Affordable Homes preferably near work.
Rapid Innovation of Technology
Mortgage and real estate industries have pulled away from manual and paper processes and have replaced with digital solutions.
Now virtually all Mortgage Qualification and Loan Processes are done via smart phone or on-line.
Millennials entering the market have created a catalyst to innovate technology rapidly in order to meet expectations. Real estate marketing, software and increased demand for on-line technology platforms offering property data, research, marketing, auctions, purchases and world wide vacation rental platforms and networks.
Hawaii Real Estate Trends for Big Island & Luxury Resorts in 2020
Real Estate Property Values Rise
The oceanfront luxury resorts of: Mauna Lani Resort, Mauna Kea Resort, Hualalai Resort, Kohanaiki and Kukio favor the greatest increase in Property Values. View Mauna Lani Resort Properties
More Commercial Construction Projects
Wonderful new jobs coming to the Big Island into 2020 and beyond. The new Waikoloa Village Shopping Center broke ground in early 2019 will be complete in 2 years. The Westin Hapuna Resort Major Remodel is finalizing completion of the huge Hotel to Condo project which will be complete in 2020. The new Mauna Lani Auberge Resort bringing finalized their $200 million in renovations and reopens in early 2020 with more than 400 new employees.
More Buyers choose Hawaii for Second or Vacation Home
The “Snow Birds” escape the Winter season and some escape fires or natural disasters and come to Hawaii to a beautiful and pristine climate.
Owning Your Own Vacation Rental
Their is a practical demand for valuable steady income and the tremendous tax benefits. Our Agents assist our Clients to purchase their Resort Home or Condo and professionally Manage their own Vacation Rental Investment Property. View our Vacation Rental Website
Mauna Lani Resort more New Construction of Luxury Homes
Beautiful brand new homes are currently being built in private communities of: Ke Kailani, Laulea, Nohea. Look for at least 3 brand new luxury resort homes to be under construction in Ke Kailani in 2020. In Mauna Lani Resort, the recent Brand New Luxury Home sold for $5.4 Million in November 2019.
Hawaii Real Estate Market and Economy is thriving and reflects healthy growth. Look forward to a positive future in the Hawaii Luxury Resorts Market in 2020.