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Purchase a Home in Paradise: Why it’s Still a Great Time to Buy a House in Hawaii

How to Buy a House in Hawaii Find the Perfect Home in Paradise

Hawaii recognizes as one of the most beautiful places in the world. With its white sandy beaches, crystal clear blue waters, and lush green mountains, it’s no wonder that people are still flocking to the island state and looking to buy property here. The Hawaii real estate market has been hot for a while now. However, recent changes during the global pandemic have made it an even better time to buy, with mortgage rates still near historic lows, a reduction in foreign buyers, and the move toward the Great Resignation. This article will discuss why moving fast is your best bet if you’re considering buying property in Hawaii.

More Buyers than Available Housing

The Hawaii real estate market is experiencing unprecedented demand in 2022, with supply unable to keep up. As a result, property prices are soaring, with bidding wars driving up prices in popular tourist areas like Honolulu and Lahaina. The luxury housing market is booming, with $3.7 billion worth of homes above $3 million sold in 2021, double the previous record. Hawaii’s Department of Business, Economic Development and Tourism reports a 21.95% overall growth in property prices, with a 20.7% increase in Honolulu’s median price for single-family resales in Q4 2021 compared to the same period in 2020.

Despite the high demand, there are fewer homes on the market compared to last year, resulting in a drop in sales for both single-family units and condominiums. The median days on the market for condos in Hawaii has decreased from 25 to 16 days, indicating that properties are selling quickly, with some buyers purchasing homes sight-unseen.

If you’re considering buying property in Hawaii, it’s crucial to act fast in this competitive market. With prices steadily rising and supply unable to keep up with demand, now is the time to make your move and secure your dream home in paradise.

They are Not Making More Land in Paradise

Hawaii’s housing supply cannot keep up with the demand, which will only increase as more people look to move to the island state. High-profile individuals like Jeff Bezos and Mark Zuckerberg buying property in Hawaii have demonstrated investment potential and increased prices. Despite the stable construction industry, more construction efforts are needed to meet buyer demand due to strict building codes and regulations, resulting in lengthy entitlement processes that can take years to complete.

The time-consuming and costly permitting process presents many hurdles for developers, with some projects needing to be abandoned before they start. Labor costs have also risen, and Honolulu now has the third-highest building costs after New York and San Francisco. The lack of available properties, lengthy entitlement process, and high construction costs make it unlikely that Hawaii’s housing inventory will catch up to demand soon. Therefore, purchasing property in Hawaii while you can do so is essential in this competitive market.

Reduction of Foreign Buyers in the Market

The pandemic and recent global events have led to a significant decrease in foreign property investment in Hawaii, mainly from Japan, South Korea, China, and Russia. Sales to Japanese buyers decreased by 61% in Q4 2021, while sales to South Korean buyers dropped by 70% in the same period.

During the pandemic, travel restrictions and country advisories prevented potential buyers from physically visiting properties, and global political tensions have made some investors hesitant to purchase property overseas. However, foreign investment is still happening, and with travel restrictions lifting and vaccines becoming widely available, we can expect a rebound in foreign investment in the coming months.

As a result, property prices in Hawaii are likely to rise even higher, making now an opportune time to buy, as fewer foreign buyers currently compete for properties. But this may only last for a while, so taking advantage of this situation is crucial.

Interest Rates Are Still Near Historic Lows

Since the pandemic’s onset, mortgage rates have dropped significantly, reaching an all-time low of 2.65% in March 2020. Rates were under 3% by the end of 2020, which, while low, is still significantly lower than pre-pandemic rates.

It is an excellent opportunity for potential home buyers in Hawaii to purchase a property with lower monthly mortgage payments. Low mortgage rates provide significant savings as mortgage payments are one of the largest expenses for homeowners. Higher speeds reduce a buyer’s purchasing power, with every percent increase in interest impacting buyers by approximately $100,000 in buying power.
These low rates also make it an ideal time to refinance an existing mortgage or invest in a property. Buyers can take advantage of lower interest rates, resulting in more money to reinvest in the property.

Considering the potential for mortgage rates to rise again, now is an excellent time to purchase property in Hawaii and take advantage of the low-interest rates and potentially more favorable terms. Take advantage of this opportunity!

The Bottom Line

If you’re thinking about buying property in Hawaii, you’ll want to act fast before the prices become unattainable. The market is expected to rebound in the coming months as more travel restrictions are lifted and foreign investment starts to flow back into the market. In addition, interest rates are still near historic lows, making now a great time to buy a property with a low monthly mortgage payment.

Additionally, The Great Resignation poses another opportunity for potential home buyers and renters. Many people have been re-evaluating their lives during the pandemic and deciding that they want to live in a place that brings them happiness. For many, this means moving to Hawaii. The state has seen an influx of people moving here over the past year as they look to escape the cold winters, high taxes, and fast-paced lifestyle of places like New York City and Los Angeles. As working from home has become the new norm for many people, it has made it easier for them to relocate to a place like Hawaii where they can enjoy the year-round sunshine and slower pace of life.

If you’re considering buying a home in Hawaii, there’s no time like the present. is here to help you find the perfect property and get the best mortgage rate possible. Contact Elias today to learn more!

August 30, 2025/by Elias Halvorson

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How to Secure Hawaii VA Loans – Low Interest Rates

How to Secure a Hawaii VA Loan Step-by-Step Support for Veterans and Military Families

Welcome to our Guide on How to Secure Hawaii VA Loans with low-interest rates! In this comprehensive resource, we will explore the essential steps and strategies for obtaining VA loans in the beautiful islands of Hawaii while taking advantage of competitive interest rates.

Hawaii VA Loans: An Effective Way to Secure a Mortgage in a Rising Interest Rate Market

If you’re a veteran or active-duty military member looking to buy a home in Hawaii, now is the time to act. The current interest rate market is shifting, and it’s becoming more challenging to qualify for a mortgage as interest rates rise. For this reason, understanding the ins and outs of getting a mortgage through the VA Loan Program is more important than ever if you qualify. This blog post will discuss how to get a VA loan in Hawaii and what to expect in today’s market.

100% Financing is Achievable

As a homebuyer in Hawaii, you must understand the facts about these government-backed mortgages. For example, did you know that a VA loan is not necessarily monetary? Instead, the federal government guarantees a portion of your loan (usually around 25%), making it easier for lenders to provide financing for up to 100% of the home’s value. In addition, VA loans come with some of the lowest interest rates available, which means that you can save a significant amount of money over the life of your loan. VA loans come with fees and closing costs, which will incorporate into the loan and finance.

Your Top VA Loan Questions, Answered.

Despite their many benefits, VA loans are one of the most misunderstood mortgage products on the market. It is because so many different types of VA loans are available. For example, there are VA purchase loans, which can finance the purchase of a home. There are also VA refinance loans, which can lower your monthly payments or get cash out of your home equity. And finally, there are VA rehab loans, which can finance the repair or renovation of a home.

Top 5 Myths About Hawaii VA loans

We’ve compiled a list of the top 5 myths about Hawaii VA loans so that you can be well-equipped with the knowledge you need to make the most informed decision when you’re ready to purchase a home in Hawaii.

Myth #01: You need perfect credit to qualify

While it’s true that your credit score plays an important role in the loan approval process, you don’t need perfect credit to qualify for a VA loan. Even with bad credit, you may still be eligible for a VA loan if you have a strong enough income and a good history of making on-time payments. Your lender will then make the final decision on whether or not to approve your loan. If you’re considering borrowing from a conventional lender, you’ll need a reasonably good credit score, but a VA lender may be more lenient. Some lenders approve VA loans for veterans with credit scores as low as 550.

Myth #02: You need a huge down payment

Conventional loans typically need a 5-20% down payment, but VA loans may not. With an unencumbered VA entitlement, you can get a VA loan with no money down. If your entitlement is insufficient, a small down payment might be necessary. A qualified VA mortgage broker can help calculate your loan limit and down payment requirements. A VA funding fee is required for most VA mortgages, with exceptions for disability ratings above 10%. The fee sustains the program and includes in the loan amount.

Myth #03: VA loans are only for first-time homebuyers

While VA loans are an excellent option for first-time homebuyers, they’re also perfect for anyone looking to buy a new home at any stage. If you’re a veteran or active-duty military member, you may be eligible for a VA loan regardless of whether you’ve bought a home. Even if you’ve already used your VA loan entitlement, you may still be eligible to use it again if you meet specific requirements, including selling your previous home or paying off your loan in full.

Myth #04: You can only use a VA loan to buy a single-family home

VA loans can finance the purchase of various properties, including single-family homes, townhouses, and even condominiums. However, there are a few restrictions. For example, you may not be able to use a VA loan to purchase an investment property or a vacation home. But you should be eligible as long as the property you’re looking to purchase will be your primary residence. Consulting with a mortgage broker is the best way to determine whether a parcel is eligible for VA financing.

Myth #05: The interest rate on a VA loan is always higher than a conventional mortgage

We touched on this briefly, but it’s worth repeating: the interest rate on a VA loan is not always higher than a conventional mortgage. VA loans often come with some of the lowest interest rates available, especially when you compare them to other types of loans like FHA or subprime mortgages. It is because VA loans back by the government, which gives lenders the confidence to offer lower interest rates. Low interest rates are making VA loans desirable for home buyers in the current climate.

Our Final Thoughts

If you’re considering using a VA loan to purchase a home in Hawaii, now is the time to start working with a Hawaii VA mortgage broker who can help you navigate the process. With interest rates rising, getting pre-approved for a loan and locking in a low rate is more important than ever. A veteran loan officer can help you compare rates from different lenders and find the best loan for your needs.The first step in getting a VA loan is to obtain your Certificate of Eligibility (COE). The COE verifies to the lender that you are eligible for a VA-backed loan. You can receive your COE through an online service offered by the Department of Veterans Affairs, through your lender, or by mail through the Veterans Benefits Administration. A mortgage broker, however, will be able to help you obtain your COE with little to no hassle and will also be able to negotiate the best interest rate on your behalf.Get in touch with me to learn more about VA loans and how I can help you finance the purchase of your new home in Hawaii.Elias Halvorson has over a decade of experience in the financial industry and is one of the top brokers in this specialist field.

May 21, 2022/by Elias Halvorson

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Hawaii Volunteer Opportunities for Helping AMVETS Oahu

Habitat-for-humanity-Veterans-build-2021

It’s national volunteer week in the US, and there’s no better time to explore Hawaii volunteer ops for giving back to our communities. Whether you’re a seasoned pro or a first-time volunteer, it’s an excellent chance to help people, especially groups like veterans. As a Hawaii mortgage broker specializing in Oahu VA loans, we assist veterans by securing low-interest rates on Honolulu VA mortgages. Additionally, we connect people to volunteer programs for aiding veterans in Hawaii. Let’s dive into some of the top volunteer initiatives for supporting veterans across Aloha State.

Top 5 Hawaii Volunteer Programs: Empower Veterans & Strengthen Communities

Introducing our Top 5 Hawaii Volunteer Ops that empower veterans and create positive change in communities across Aloha State. These organizations offer opportunities for people from all backgrounds to come together and make a real difference in the lives of veterans.

AMVETS

The American Veterans (AMVETS) is a national veteran service designed to support veterans nationwide. In Hawaii, the group runs numerous programs and special events. They accept everyone as volunteers, ranging from veterans and serving military personnel to civilians. You’ll find an email address on the above page if you want to join.

Habitat for Humanity

Habitat for Humanity is a famous voluntary service that provides everything from employment opportunities to housing for underserved communities. Its Honolulu branch runs fundraising efforts and accepts volunteers from all walks of life. It also runs corporate partnerships if you’re a company that wishes to cooperate.

American Red Cross

Despite mainly being known as a disaster relief charity, the American Red Cross provides help to veterans and military service personnel across the country. In Hawaii, it aids and supports veterans in numerous ways. Volunteers do up to 90% of the charity’s work. It also has a more in-depth registration process, and you’ll often select based on your skills. However, you can still fill out a profile and see what happens.

CORE Studios

CORE Studios is a veteran-owned production company that provides education and employment to ex-service personnel. The organization is always looking for new partners and instructors to help expand its offering, so get in touch with them to see how you can help.

Volunteers of America

Volunteers of America is a self-explanatory organization. It helps all people, from the vulnerable to older people and veterans. Its services include support and reintegration, affordable housing, employment resources, and more. If you’d like to get involved in your community, the easiest way is to locate your closest local office. Call them directly or email them to see what kind of programs they’re currently running. As one of the biggest support services in the country, it’s best to deal locally.

Final Thoughts

National volunteer week is a great time to push yourself into changing lives for the better. Hopefully, when you join now will motivate you to volunteer for the rest of the year, too. If you know any veterans that need help or advice related to housing, get in touch. We help arrange VA loans with low-interest rates, and, as a mortgage broker, we make it our mission to get the best deals. Reach out at elias@c2hawaii, or 808-517-6416 to see how we can help.

April 20, 2022/by Elias Halvorson