Half-million-dollar housing

[Glen Miyashiro]

Half of all single-family dwellings on the Island sold for more than $505,000 in January, a 26.3 percent rise over the $400,000 median a year earlier, according to Honolulu Board of Realtors data released today. (http://the.honoluluadvertiser.com/ar.../br/br08p.html)

Good god. I'm not sure which number appalls me more, the $505,000 or the 26.3% increase.

[LikaNui]

Re: Half-million-dollar housing

There's a townhome complex in Kaneohe that I'm very familiar with. Exactly two years ago the average sale price was $303,000 and now it's clear up to $495,000.

[kimo55]

Re: Half-million-dollar housing

There's a townhome complex in Kaneohe that I'm very familiar with. Exactly two years ago the average sale price was $303,000 and now it's clear up to $495,000.

helluva jump...


back in the late 60's, some homes, (you know which ones...) in Lanikai were selling at $80,000. Same homes now; $800,000.

[Glen Miyashiro]

Re: Half-million-dollar housing

I wonder if anyone has numbers on how much house you can afford with the median Hawai'i household income? I'd like to see those figures put side by side with the realtors' housing sales statistics.

[Miulang]

Re: Half-million-dollar housing

According to the Census Bureau statistics for 2003, the median household income for Hawai'i was almost $52,000. That means 50% of households earned more than $52,000 and 50% earned less. I'm pretty sure why Hawai'i has one of the highest median incomes in the US is because there are at least 2 working adults in each household. That's about $1,000/week. The old rule of thumb for mortgages used to be 30%, but now I think it's more like 50%. My guess is on a 30 year fixed mortgage, a family bringing in $50,000 annually and paying about $2,000/mo could probably afford a $500,000 house. But then there would be virtually nothing left for "other" things, like utility, food, gas, car payments, etc. The pinch is not so much the monthly mortgage but the hefty down payment you'd probably have to make to qualify for a loan of $500,000. (To qualify for certain types of mortgages, you have to put down at least 20% of the purchase price to avoid having to pay mortgage insurance).

http://www.census.gov/hhes/income/histinc/h08.html

Miulang

[1stwahine]

Re: Half-million-dollar housing

I guess thats why my three children (all in military) are getting together to purchase property (not new) with a home or two on it. Their Military benefits of buying a home and being first time buyers will surely be a plus. They want to get me out of Mayor Wrights asap. It's not funny anymore. I still want my FREEDOM and don't plan to be a HomeAlone Granny. I'm gonna live and be a hep granny. They're always trying to BOSS me since my husband died. I ain't gonna move! High prices of homes...buy now, everyday it goes up!

Their re-enlistment BONUSES and pay being in a Combat Zone comes in handy too. Alot of tears and sleepless nights too!

[808_m3]

Re: Half-million-dollar housing

It's the same deal here in the SF bay area as well. A collegue of mine purchased a home in Redwood City and bought a really nice place in San Ramon. He originally bought it for 200K and sold it for 700K. The equity on the sale was applied as a large down payment to his nice place in San Ramon. Now, he lives in a very nice area with almost the same mortgage every month.

I gather this is what people are doing in Hawaii. With the low mortgage interest rates and the limited supply of housing, these factors are just driving the prices up. People are cashing out their equity and upgrading their homes.

I just wished my spouse and I did the Hawaii home investment earlier, at least it would have been some chunk of change to be had.

[Miulang]

Re: Half-million-dollar housing

If you think housing prices on Oahu are ridiculous, read this article in this morning's Advertiser about neighbor island housing prices and really get scared!

Miulang

http://the.honoluluadvertiser.com/ar.../bz/bz01p.html

[pzarquon]

Re: Half-million-dollar housing

From the article:

Big Island median prices were up 18 percent to $294,000 from $249,000 for condos, and up 54 percent to $352,750 from $229,500 for single-family homes, according to Hawaii Information Service.

Eep. To think that ten years ago, I was relieve somewhat to think that Hilo would always be there for me if I never quite found the cash to stay in Honolulu. The sad thing is, compared to the Oahu median, $352,750 still seems downright reasonable.

[Glen Miyashiro]

Re: Half-million-dollar housing

...and now the median home sale price on O'ahu is up to $550,000. Eep, indeed.

[craigwatanabe]

Re: Half-million-dollar housing

For the shell-shocked Oahu home buyers (I was one previously) even with the higher prices that have hit the East Hawaii market (lower Puna, Hilo, Hamakua) it's still a bargain, but the prices are moving up quite rapidly and if you want to buy a really choice piece of property in this market, nows the time to do it.

Realistically if you wanted to live anywhere but West Oahu to avoid the morning and afternoon rush hour traffic, half a million was the baseline for affordable housing within the city limits as long ago as two years ago! Now that area is more like $600,000 and up. For half a million dollars you can buy an incredable piece of property here on the Big Island comparable to Kahala homes on one acre lots. For a million dollars you get some tremendous real estate. On Oahu a million gets you middle to upper middle class nowdays. In Keaau, that million gets you Hawaii Loa status!

[Miulang]

Re: Half-million-dollar housing

This is a textbook case of high demand increasing the price of housing and real estate overall in Hawai'i and elsewhere.

Many Boomers had once invested heavily in the stock market but with the uncertainty in that arena and the Prez' threats to redefine Social Security, they are pulling out their savings and retirement funds and investing in real estate.
Unfortunately (depending on whether you're a buyer or a seller), what goes up eventually will have to come down, and the real estate market will someday have to crash, which is about the only time locals will be able to again afford to purchase housing at reasonable prices.

Maybe the State needs to make it more painful for people to own investment property, while giving more tax breaks to those who live in their houses.

Miulang

[Linkmeister]

Re: Half-million-dollar housing

We once thought we'd have a vacation (or retirement) home in Royal Gardens near Kalapana on the Big Island, and we bought a lot there. Alas, while the land increased by accretion, it dropped in value.

[kimo55]

Re: Half-million-dollar housing

heard of homes being put on the market for around 400k and then, ultimately selling for 800k plus. Imagine getting that much OVER your asking price. Bidding wars are not unheard of lately.

[Glen Miyashiro]

Re: Half-million-dollar housing

It's happening in California, too.

LOS ANGELES -- California households are making less than half the income necessary to buy a median-priced home in the first quarter of 2005.

Statewide households, with a median household income of $53,540, are $60,380 short of the $113,920 qualifying income needed to purchase a median-priced home at $488,600 in California, according to the California Association of Realtors (C.A.R.) Homebuyer Income Gap Index (HIGI) report for the first quarter of 2005. (source )