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Hawaii real estate market starting to boom

The local Hawaii real estate market is on the verge of booming.  That is the word coming in from various forecasts from different industries and economists.  Economists, construction companies, and tourism are all pointing to a booming Hawaiian economy.  One only has to look at the single family home median sales prices and the number of homes selling to see a clear indication. The latest statistics show that for the month of November the median sales price of single family homes and condos have each risen by more than 10% since the same month last year. Inventory is still tight and good properties sell within days of coming on the market.

Hawaii Building permits for new construction are higher in September achieving a 33% increase from the previous year.  This is the highest amount since 2007 as investors flock to the island taking advantage of the affluent Asian travelers and Buyers.  Major condominium projects are scheduled to be built including Howard Hughes Corp’s One Ala Moana which was sold out in less than 3 days, the upcoming Waikiki Residences project and a new condo at Ward Avenue and Kapiolani Boulevard among others.  All of these project developers say pent up demand are the reasoning behind pursuing all of these projects at this time.  From the schedule, the next few years will transform the Honolulu skyline.

Tourism is also booming with record numbers.  Analysts are surprised at how quickly Hawaii Tourism Industry recovered from the Japanese disaster.  Each month posting record numbers.  The latest news is that the rental car rates in Hawaii are the highest in the nation during this Christmas season because of increased demand.  Now, with hotel being at least 80% full in the month of November and likely higher in December, we are looking forward to an even better economy for Hawaii in 2013.

The GDP growth rate is expected to increase in Hawaii to 2.4% up from 1.6% seen in 2012.  Forecasts say the real leaders next year will be tourism and the construction industry with real estate right behind.  We could easily see further surprises to the upside in growth rates.

To learn more about the Hawaii real estate market and find a good home or investment property for yourself contact Malia L. Meenderman, Realtor, your Hawaii real estate expert.

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