If your new neighbors are from out of state, you’re not alone. A home-buying report released today by the state Department of Business, Economic Development and Tourism (DBEDT) says that nearly out-of-state homebuyers bought 47 percent of homes sold on the neighbor islands in the past seven years. The “Residential Home Sales in Hawaii” report, the first ever of its kind released by DBEDT, summarizes home sales throughout the state from January 2008 to September 2015.
Analysts with the department’s Research and Economic Analysis Division created the report based on data compiled by Title Guaranty, which is based on the recorded conveyances from the Hawaii Bureau of Conveyances. Officials say the data includes resales of existing homes and new developments, sales of single-family homes and condominiums through real estate agents, as well as sales by owners.
Among the report’s findings:
- Between January 2008 and September 2015, a total of 139,998 homes were sold, this represented an average of 18,064 homes sold per year, or 1,505 homes sold per month.
- About 47 percent of the neighbor island homes were sold to out-of-state residents, while only 15 percent of Oahu homes were sold to out-of-state residents.
- Among the foreign buyers, Canadians ranked the first at 44.1 percent, and Japanese buyers ranked the second at 37.9 percent. Buyers from these two countries accounted for 82 percent of the total foreign buyers.
- Buyers from Hong Kong had the highest average home price at $1.05 million, followed by homes purchased by residents of China at $936,738, and Korean buyers at $882,894.
- Home purchases by Canadian residents have been declining in recent years while purchases by other foreigners have been flat.
- Of the homes sold statewide, 72.5 percent were sold to Hawaii residents, 23.5 percent sold to U.S. mainlanders, and 4 percent sold to foreigners.
- Average price for homes purchased by foreign residents was the highest at $785,604, followed by homes purchased by U.S. mainland buyers at $630,390, while homes purchased by Hawaii residents averaged at $478,189.
- Among the U.S. mainland buyers, California buyers accounted for 38.4 percent of the total, followed by buyers from Texas at 10.5 percent, Washington State buyers ranked third at 8.5 percent.
DBEDT plans to issue an update to the report by breaking the home sales into single family and condominium homes, and will include the home sales data in its quarterly economic report starting in February 2016.