HONOLULU (KHON2) -- Homeownership--itʻs the goal for many here in the islands. But costs have put that goal in a difficult spot for many young people and families in Hawaii.
Rusty Rasmussen, the senior vice president with Central Pacific Bank's loans division, shared tips and tricks to homeownership on Wake Up 2Day.
"The best advice is to maintain your home well and pay your mortgage, property taxes, association dues, etc. in a timely manner," Rasmussen said. "For many families in Hawaii, we see that the equity in their home is the majority of their personal wealth, so it is good to look at homeownership from that perspective. The median sales price in Hawaii, 30 years ago in 1994 was $360,000. In 2024 it is about $1.1 million. Using that example after 30 years that is $740,000 in equity, and the mortgage is paid off."
As far as advice for those looking to buy their first home, Rasmussen warns of getting discouraged.
"There are many challenges now. Rates are higher now but expected to drop some by the end of the year. Insurance costs are rising. There are many condo issues now, some also tied to insurance. Prices have risen quite dramatically over the past few years also. My advice - don't be discouraged. There are many dedicated professionals, like the Loan Officers at Central Pacific Bank, who can walk you through the process. The current challenges in the market will work themselves out eventually. You may have to work a little harder in this environment but the rewards are there. Homeownership has proven to be the foundation for generational wealth."
Inventory of available homes for sale, condos, and single-family homes has increased recently.
"The Honolulu Board of Realtors reported an increase in homes for sale of 11.7% for single-family and 13.1% for condos in May of 2024," Rasmussen said.
If you're looking to get started, there are resources available.
"A great way to start is to connect with a Realtor and a Loan Officer," Rasmussen said. "There are many professionals out there who do this every day with people just like you. There are many resources including the Hawaii Homeownership Center, a non-profit that is a valuable resource, down payment assistance programs, closing costs grant programs, and multiple loan programs designed for every income group."