It’s been three weeks since the law governing short-term vacation rentals went into effect. What impact is that having on home sales?
The short answer, according to real estate agents is, that it’s too soon to tell. But statistics do show a slight increase in the amount of homes on the market and that homes are staying on the market longer.
Statistics from the Honolulu Board of Realtors, shows that sales of single family homes have gone up 12.7 percent since July 2018. And sales of condominiums have gone up 2.2 percent.
There is also a bump in how many homes are up for sale.
In July of 2018, there were 3,270 homes listed for sale so far that year compared to 3,431 the same time this year.
Real estate agent Kasandra Shriver added that properties are also not selling as quickly.
“Most of our properties are staying on the market from the statistics about two times the amount of time as last year,” said Shriver.
The new law governing short term vacation rentals took effect August 1st.
There were an estimated 10,000 of them operating in Hawaii.
Could the new law already be having an impact on the real estate market?
“It may, but I don’t think we’ve seen it yet. I think it’s too new. I think everybody’s sort of weighing their options at this point…Do we continue to long-term rentals and hope to make up the cost somewhere else? I think the struggle is trying to figure out how to fill the gap in the income,” Shriver explained.
She said it will likely take some time before we truly see the impact on the housing market and can attribute it to the law.
“I don’t think we’re actually going to see that until we flush the bill out until he gets to the point where we have people were able to apply for registration and we have a clearer understanding of what all the limitations are.”
Only 1700 new permits will given allowing short term vacation rentals and registration for those permits won’t be open until October 2020.