Being a predominantly residential area, Pearl City has ample real estate offerings for both residential, rental and even as investment options. Unlike the rest of the island, which has a high proportion of retiree and long-term tourist population, Pearl City’s residents live and work in the region in average income jobs in the neighboring regions. Due to the middle income demography of the region followed by the location (away from the beaches), real estate in Pearl City is quite cheap, coming in quite below the national average. Currently, nearly 67% of the properties are owned, while 30% are rentals and the rest are vacant.
The real estate market in Pearl City took quite a hit from the subprime crisis that hit the entire United States’ economy. Only recently has the market began recovering and but house prices are still not up to their original value and are on a decreasing trend. The average price of a home is a little under $0.55million as opposed to the national average of $0.82million. The prices are expected to lower towards the end of this financial year and the trend is expected to continue in the next year too, because of the current economic crisis. Rental prices vary based on the property but they are expected to follow a similar trend too.
The properties in Pearl City, not being the prime ones in the area, have not seen much of a change in terms of price per area. It has remained fairly constant at around $300/square foot with a variation of $10 on either side. On the whole, the properties located closer to the conveniences and those with easier access to the highway and recreational facilities are higher priced.
There are currently 63 homes on sale in the Pearl City region, of which 36 are on auction because of bank foreclosures. This shows that the area has been quite deeply affected by the economic crisis and the result is being felt in the mortgage rates and lending options.
Mortgage and Buying Facilities
Offers of mortgages and loans are readily available in the Pearl City area, albeit at slightly high interest rates. The average mortgage goes for 5% for a 10-year loan period and it increases with the duration. This is in wake of the recent increase in the number of foreclosures. Reputed banks and other mortgage institutions have offices in the area so borrowers can check out various options and weigh the choices carefully before making a decision.
Real estate agencies and brokers are the major source of information for buying real estate. The listings on the Internet are also usually run by these brokerages so it trickles down to the same thing. As with brokerages everywhere, it is best to check licensing and their reputation with local homeowners before deciding.
Lifestyle and Quality of Life
The Pearl City region offers an average quality of life being a middle-income neighborhood. It is not the best place to stay for long-term tourists, as it doesn’t have much access to the highlights of the area. However, it is easily the favorites of residents because of the low cost of living relative to the region (155 on absolute value against the national average of 100). Potential and future residents should expect an urban lifestyle coupled with the serenity and beauty of the natural landscapes Hawaii is best known for.