HONOLULU (KHON2) — Rising home prices have become a nationwide problem; however, depending on where you are looking could mean paying more just for location.
Inspection Support Network came out with a new report ranking the states with the highest percentage of million-dollar home sales. Hawaii and California both came out on top.
In California, more than one in five homes sell for over $1 million. Hawaii comes in just under that with one in six. Inspection Report Network used data from the Home Mortgage Disclosure Act looking at luxury home sales.
In recent studies Hawaii has been slammed with being one of the most expensive states to live in, work in, commute and raise a family. With the growing costs of inflation, some people are having a hard time keeping up.
For first-time homebuyers, this upcoming summer might be more competitive with people choosing to be more strategic with listing prices and how much they list their house to be sold for.
Berneicea Worrell operates Hawaii Premier Homes and said right now it’s a sellers’ market, not just in Hawaii but all over the U.S. That means if buyers want to get a house to call their own, they’ll have to compete.
“This market is still very strong and healthy. It appears to be more competitive than 2021,” said Worrell.
Worrell said Hawaii has such limited inventory and the ability to just keep building new homes doesn’t exist like in other places in the country.
“We are on an island, with limited opportunities to find a piece of land and start developing it,” said Worrell. “Buyers should understand the market, before submitting an offer.”
She said for the most part houses in Hawaii keep their value and it is a great investment. But right now, it comes with a high price some are willing to pay.
“If you placed an offer 5% below list price 10 years ago in another state and had the seller paid your closing costs, understand that opportunity may not exist on this island right now,” said Worrell.
With Hawaii have the lowest real estate property tax and not having a vehicle property tax, the state is highly desired by many people which could be the reason behind the competitive housing market in Hawaii.
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To read the full report about Hawaii luxury home sales on the rise, visit Inspection Support Network’s website.