There is a lot to be said about the hawaii housing market, and one of them is it is expensive. Under normal circumstances, owning a home in hawaii is already a huge investment. The pandemic has somehow shifted the already-expensive hawaii real estate market into overdrive. This year alone, it is not uncommon to see ten or more buyers competing for the same properties. Bidding has become the name of the game, with cash buyers getting the upper hand on their competitors.
As of december 2021, the average days on market (dom) of a hawaiian property is 87 days, with houses from pearl city selling a lot faster with only 34 dom.
The state of hawaii has 91 cities, and 5 counties. Kauai county houses 17 cities within its borders. Often agents will service and specialize in multiple zipcodes and cities, especially in larger counties. According to the national association of realtors, the state of hawaii has 394 licensed real estate agents as of august 2021. No matter what kauai county city you live in, there's a top realtor who will get you the best deal when it comes to buying or selling a home. As you start on your real estate journey be sure to pick a great agent to ensure your real estate experience is the best it can be.
Kauai Real Estate Prices
Throughout the big island, you will see quite a variety of hoa (homeowners association) dues. Each complex provides different services in its association packages. The prices can range from $400 a month to $4,000 a month. Understanding the association rules and making sure there are no restrictions on rentals is ultimately up to you.
Having a real estate agent that knows the property rules will also help guide you. Some condos in kona, like alii cove, do not allow for short-term rentals. Some condos like hali’i kai have a minimum stay of 3 days. Understanding the property rules and regulations is an integral part of a rental property.
If you are a canadian national, or international home buyer interested in investing in hawaii real estate on the islands of big island, kauai, lanai, maui, molokai or oahu, here are a few tips from brad hill and pacific home loans to prepare you with your real estate purchase and loan financing. We have also included information on what fees you can expect from pacific home loans, as well as those from the escrow and title company. There is a brief explanation on the firpta and harpta withholding required for sellers that live off-island and why you may need a tax identification number in the event you plan on renting out your real estate investment in hawaii.
Most properties are fee simple on kauai meaning a person owns the property outright. There are a few properties on kauai that are leasehold. Meaning when purchased someone is purchasing a lease and there is an underlying fee owner. A leasehold condominium project on kauai my advice: decide whether fee simple or leasehold is best for your situation. Leasehold properties can be cheaper however have an expiring lease.
The hawaii real estate market is unique in that there are leasehold and fee-simple properties.