Just minutes away from vibrant Waikiki is Kahala, an upscale and exclusive neighborhood on the island of Oahu, Honolulu, attracting affluent individuals and families, including billionaires, celebrities, and business moguls. It is home to stunning oceanfront views, pristine beaches, and some of the country's most expensive beachfront real estate.
Residents here enjoy proximity to many of the community's amenities, including grocery stores, restaurants, and convenient shopping at the pompous Kahala Mall. At the neighborhood's edge is Waialae Country Club, an 18-hole members-only golf course, and the epic Kahala Hotel Resort.
Kahala real estate comprises luxurious properties, including mansion-like houses with sprawling grounds, Dickey roofs, lanai porches, and ample public access to serene beaches along the Kahala coast. If you plan to buy a home in Kahala, the real estate experts at Beth Chang Realtors provide the latest information on market prices, trends, and forecasts to help you make informed investment decisions.
Kahala Housing Market Forecast 2023
Generally, there is something for everyone in Kahala, except for affordable homes. One of the highest barriers to entry to the neighborhood is its pricey median housing prices and a lack of condo options. Here is a detailed overview of the Kahala housing market in 2023:
Home values increasing
Indicators suggest overall home values will continue to rise in Kahala in 2023. The median sale price of a home in the area was $1.5M in July, up 14.5% since last year, with homes staying for 49 days in the market compared to 33 last year. The rising home prices can be attributed to increased demand for homes from investors and potential homeowners amid a low inventory of new homes.
Lowering interest rates
The Kahala real estate market remained sluggish the past year, as high interest rates upwards of 7% subdued sales. The interest rates have recently started decreasing, with current rates hovering around 6.5%. This is generally good news for homebuyers, although experts reveal the decline will continue gradually. The rates are expected to average around 5% by 2024.
Investing indicators will favor landlords
Investing indicators will slightly favor landlords thanks to an increasing cost of rent. In August, the average rent price in Kahala for a three-bedroom apartment was $5,123 per month, a slight increase from last year's rent prices. Inventory rentals remain limited thanks to rising home prices and stubborn mortgage rates. This suggests rental prices will remain high or increase until the interest rates decrease significantly.
Kahala is home to about 9,470 people, representing a -1% population growth since 2000. The annual residential turnover is 14%, with a median year-in-residency of 5.48. These statistics suggest more people have moved away from Kahala than to it. This trend may be attributed to the higher cost of living and a recent rise in home and rental prices. However, the affluent residents who move into the area bring substantial net income, allowing them to buy or rent pricey luxurious properties regardless of the interest rate.
Kahala County Housing Market Trends 2023
Market indicators reveal the Kahala County housing sector will likely shift from a hot seller's market to one that favors the buyer. While home prices may continue to stabilize and even rise, it will likely be at a slower rate that will eventually balance out in the near future. If you plan to buy a dream home on the island, now could be the right time to move.
How COVID-19 affected Kahala real estate market
At the peak of the COVID-19 pandemic, Kahala real estate experienced a massive drop in sales and listings due to the impending market uncertainties and the wariness about hosting or attending open houses. As the pandemic fears eased, market activity began to pick up again. Since Kahala is historically lower in inventory, there was a gradual increase in home prices amid rising demand for luxurious beachfront homes.
Kahala foreclosure statistics 2023
Foreclosure rates reflect the market's overall health. Recent data shows Hawaii has the 23rd highest foreclosure rate in the country, with the number expected to continue rising. Generally, many listed properties didn't return to the lender, as homeowners managed to sell homes successfully.
Kahala median home prices 2023
Although the overall sales have increased, the median home prices in Kahala have risen in the past months. Recent data shows the median sale price of a home in the area was $1.5M in July, up 14.5% since last year. This can be attributed to low inventory, rising interest rates, and high demand.
Kahala real estate market: Should you invest?
If you are interested in Kahala real estate, 2023 could be the right time to buy a luxury property. Experts predict a gradual reduction in sales prices and interest rates in 2023, although they may not drop significantly compared to mainland Hawaii. The luxury market is expected to remain stable due to limited inventory and rising demand. Overall, the Kahala housing market is expected to remain strong, with home values increasing.
3 best Kahala neighborhoods for rental properties
Kahala is undisputedly one of the premier communities to live in Oahu. The area comprises approximately 1,200 homes and boasts some of the priciest homes on the island.
Known for its beautiful beaches, vibrant nightlife, and numerous shopping and dining options, Waikiki is a bustling neighborhood in Honolulu. It is a popular tourist destination and offers a mix of condominiums and single homes. Home values have continued to rise as more and more residents want the convenience of city living with easy access to the ocean. The median household income has also increased, meaning more people are likely to rent homes in this serene neighborhood.
This laid-back town on the island's windward side is famous for its stunning beaches and relaxed atmosphere. Kailua has a local feel, with plenty of outdoor activities, boutique shops, and restaurants. Kailua offers a mix of homes for sale, from single-family homes to condos. Home values have remained strong, as the demand to live in this area remains strong.
This eclectic neighborhood is known for its diverse mix of local eateries, boutiques, and historic charm. Its proximity to popular attractions, beaches, downtown Honolulu, and the University of Hawaii can make it a desirable place to live for students, young professionals, and families. While properties in the neighborhood might be more expensive than in other areas, home values remain strong. The median household incomes have also grown in this area in recent months.
Work with a local real estate expert
Kahala is renowned for its stunning natural beauty, warm climate, and cultural richness. Its diverse ecosystem makes it one of the most coveted destinations in the country. Owning luxury real estate in Kahala can be a smart investment decision for those looking for a breathtaking retreat with added financial benefits.
Beth Chang Realtors is the leading real estate agency servicing Kahala and the entire Oahu area. We boast in-depth local market knowledge and can connect you with the best properties that suit your specific preferences and budgets. Contact us today to learn more.
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