As turbulent as the real estate market continues to be across the nation, one thing is for sure – Hawaii’s market for second homes remains strong. While home buyers and sellers in other parts of the country have seen a steep downward shift in sales and home values, real estate in Hawaii continues to perform well, especially for the second-home market. Let’s take a closer look at why second homes continue to attract buyers amidst our uncertain economy.
Affluent buyers shielded from inflation
One reason that the second-home market in Hawaii continues to flourish is that affluent buyers are in a stronger position financially. While those who purchase more moderately-priced homes are now being cautious because of rising interest rates, many affluent buyers aren’t impacted by those increases. According to the National Association of Realtors, all-cash sales are rising because of competition, and more than half of all second-home purchases are made with all cash.
Real estate is seen as a stable investment
Another reason that the second-home market in Hawaii remains strong is that real estate is viewed by many as a stable investment. With all the volatility in the stock market over the last few months, real estate has become a more popular way to diversify a portfolio. Real estate gives you a tangible asset to own and use. Having a second home on Oahu means always having a wonderful place to vacation or an opportunity for a steady stream of income as a rental property. Real estate also increases in value over time and is consistently ranked by Americans as the best investment, with stocks ranking a distant second.
Hawaii has the lowest property taxes of any state in the country
What else is driving the second-home market in Hawaii? For many, it’s low property taxes. In fact, Hawaii has the lowest property taxes of any state in the nation. That makes it cheaper to own a second home here in Hawaii than in other popular second-home destinations such as California or New York.
Location matters when buying a second home
According to Hawaii’s chief economist, nearly 15 percent of all homes sold on Oahu are purchased by out-of-state buyers. And why wouldn’t they? Motivations for buying a second home are different than they are for a primary residence. Many who purchase a second home will be using it as a vacation destination or as a rental. Since Hawaii, and Oahu specifically, is one of the most beautiful vacation destinations in the world, it’s no surprise that our second-home market remains strong.
Buyers and sellers of second homes in Hawaii should feel confident
While the real estate market is certainly giving many buyers and sellers a reason to be nervous, those in the second-home market here in Honolulu should feel confident. Now is a great time to list a home that will appeal to second-home buyers. It’s also a wonderful time to browse homes for those who are in the market for a second home.
Contact Keller Williams Honolulu today!
Are you ready to plunge into the second-home market? Then contact Keller Williams Honolulu at 808-596-2888 or [email protected] and browse our recent home listings. Our team is standing by to answer all your questions and to help you through every step of the process!