Hawaii's Booming Real Estate Market
Palm trees, sun drenched beaches, resorts and single family homes set in the most alluring of landscapes translates into "a little piece of paradise." Hawaii's market includes a variety of accommodations to satisfy a growing mix of buyers and visitors. It's "panoramic views of the Pacific" from Honolulu or any one other of its choice shorelines is an amenity you won't find beyond its cluster of islands: Oahu, Maui, Molokai and Lanai. Eager buyers are continuing to buy single properties with a strong economy seasoned with "steady job growth,"  rising incomes and low interest rates. The steady stream of buyers has created a demand that has  far surpassed the supply. There are few markets hotter than the Hawaiian islands.           Hawaii just like Phoenix and Las Vegas is experiencing a real estate "boom."  Appreciation for housing is in the double digits and the most recent sight of people lining up in droves to get a piece of an unfinished condo at the "Moana Pacific Development" in downtown Honolulu is causing a bit of a stir.  One bedroom condominiums starting at about $310,000 and going way up from there.  Condos are only a small part of the across the board activity that is keeping Realtors and buyers on an up note.  Last year prices on Hawaii's largest island Oahu rose 13.4 percent to a median price of $380,000 "after climbing 11.7 percent" in 2003. The median condo price on the island "rose more than $40,000 in the past two years to $175,000 at the end of 2003.  In April of 2004 single family homes spent an  "average of 23 days on the market while condos averaged 34 days in the same time period.  23 days is the shortest time on record for a home to spend on  the market since the Board of Realtors started keeping records in 1987. The other islands of Maui, Molokai and Lanai that make up the state "collectively posted an 18 percent boost" in the average price of a home for the first two months of last year, that meant a price of $698,337 for Jan. and Feb. of 2004.    "Half a  million dollar homes" have become the norm in the market where supplies aren't keeping pace with demand but that's only the tip of the iceberg.  Hawaii's booming housing market has been the result of steady growth in population, industry and construction that hasn't been able to keep pace with demand. Since 1998 the steady migration of home buyers to Maui has seen "a gold rush mentality take hold." In 1998 the median price of a home was $265,000. In 2004 the median price of a home for the same period of the year was $539,000. Home prices for Hawaii's market have risen considerably within the past two years but no where "more pronounced than in Maui." Maui's beautiful beaches, "posh storefront resorts,"  rainy bamboo forests, craters and much more for the intrepid vacationer, retiree, golfer, second home buyer or thrill seeker.       The islands have benefited with an economy based on tourism and complimentary industries. Homeowners and developers of all shapes and sizes have been transplanted along its shores. The beginning of the current boom began in the mid 90's and now has escalated into rush  for "beautiful landscapes" that investors and homeowners are having to wait for construction to be completed  in order to take advantage of.  The beginning of the current "boom" began with wealthy baby boomers, retirees, and second home buyers who bought a piece of the "priceless beauty" of virgin landscapes. They are currently buying into a lifestyle as premium prices allow but things are more likely to get worse,  rise even higher before they settle.   In 1995 Coldwell Banker had 11 agents in Maui and sold $50 million dollars worth of property. In 2003, 100 Coldwell bankers on Maui sold over $980 million in property. Volume and prices are testament to the "high end" market Hawaii has become including the dramatic gains and activity of the single family home.