People from Illinois and Hong Kong have shelled out the most money to buy homes in Hawaii over the last several years, according to a new report that analyzed data on homebuyers statewide.
The report from the state Department of Business, Economic Development and Tourism also found that more nonresidents than residents purchased Maui County homes, that buyers from the mainland preferred homes on Hawaii island and that buyers from foreign countries preferred Oahu homes.
DBEDT’s report analyzed all sales from 2008 through September based on data compiled by Title Guaranty from sale documents recorded at the state Bureau of Conveyances.
Over the nearly eight-year period, Hawaii residents bought 72.5 percent of the roughly 140,000 new or previously owned single-family houses and condominiums sold. Mainland residents purchased 23.5 percent of the homes while the share for foreign residents was 4 percent.
The report showed that the number of home purchases by mainland buyers surged in 2010 to about 6,000 compared with roughly 4,000 in all other years covered in the report. The number of sales to foreign buyers was flat at about 700 per year. Sales to Hawaii residents bounced between 12,000 and 14,000 a year.
Hawaii residents accounted for the biggest share of homebuyers this year through September at 77.8 percent. That compares with a low of 66.5 percent in 2010 that was due mainly to a surge in buyers from the mainland.
“The share of sales to local buyers has been high in recent years,” the report noted.
Hawaii residents on average paid $478,189 for homes during the period covered in the report.
Among foreign buyers, most were from Canada (44 percent) and Japan (38 percent) who, when combined, bought 4,641 of the 5,664 homes sold to foreign buyers since 2008.
People from Hong Kong paid the highest average price at $1.05 million based on 126 sales, followed by buyers from mainland China, who paid an average $936,738 based on 112 sales.
Overall, foreign buyers paid an average of $785,604.
More than half, about 55 percent, of the homes bought by foreign buyers were on Oahu. Another 26 percent of the homes were in Maui County (which includes Molokai and Lanai), and 16 percent were on the Big Island. Only 3 percent were on Kauai.
Among mainland buyers, people from Illinois paid the most on average at $1.2 million based on 802 sales, followed by buyers from Colorado, who paid an average $701,343 based on 1,094 sales. The average purchase price for all mainland buyers was $630,390.
The report represents the first time DBEDT analyzed data on Hawaii homebuyers by residency. The department said it plans to update the report with a breakdown by single-family house and condo sales, and include the data in its quarterly statistical and economic reports starting in February. A copy of the report can be found online at 808ne.ws/1PsKUPx.