Hawaii homebuyers face steep mortgage hikes as listings linger

Hawaii’s housing market has become increasingly difficult for buyers and sellers alike, with mortgage rates roughly doubling in some cities and homes spending significantly more time on the market. The Federal Reserve’s interest rate increase in September further tightened conditions, pushing the typical 30-year fixed mortgage rate in Hawaii to nearly 7%.

The cost of homeownership has risen sharply, with the estimated monthly payment for a typical Honolulu home jumping from $2,401 in September 2019 to $4,493 in September 2026. In Kahului on Maui, the typical monthly payment more than doubled to $5,155 over the same period, pricing out many potential buyers who previously met loan underwriting thresholds.

Despite higher inventory levels, with active listings in Kahului up 82% since 2023, the market has cooled considerably. Homes in Kahului now spend an average of 135 days on the market, nearly triple the time recorded in March 2022. Consequently, about two-thirds of homes in Hilo and Honolulu sold below their asking price in September, with median sale prices reaching $758,303 in Honolulu and $997,000 in Kapaʻa.

Read the full story at civilbeat.org.