A Quick Market Update and Quick Advice for Buyers

Here’s what to know as we head into fall.

The August numbers are finally out for our real estate market and we’re excited to share them with you. 

For starters, the single-family home median price is up to an all-time high of $839,000. For condo units, we had about 400 units sold at an average price of $430,000. The single-family homes are selling in an average of 15 days, while condos are taking slightly longer at 23 days on average.

If we were representing you as a buyer, here are our three top pieces of advice:

1. Come in strong. Inventory is low and competition is fierce.

2. Make sure you’re pre-approved. Your offer won’t be nearly as strong without one.

3. Hire professional agents. It’s tough out there and you’re going to need some experience on your side.

If you have any questions for us about the current market or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

Q: How Has the Market Changed 90 Days into COVID?

Here are the takeaways from our June 2020 versus June 2019 market comparison.

The median sale price for single-family homes has gone down a wee bit—a 3.8% reduction to $770,000. The closed sales volume has decreased to 302, which is a 7.6% drop. The average days on market has crept up just a tad to 20 (in June 2019, the average was 18 days on market). 

The median sale price for townhomes/condos is $421,500, which is a only a 2.5% change year over year. The closed sales volume, on the other hand, has fallen to 312—a 34% decrease year over year. The average days on market has gone up to 40 (the same number of days it rained while Noah was on the ark with two of every animal)! That’s a 48% increase from 27 days on market in June 2019. 

We’ve had a full 90 days of the COVID-19 pandemic, and these stats represent the ways in which the market has been affected (or, in some cases, not affected). Be safe, and Aloha!

Q: How Did This April Compare to April 2019?

We’re comparing April 2020’s market data to April 2019’s.

We’re comparing April 2020’s market data to April 2019’s.Let’s jump right into the numbers, shall we? The median sales price for single-family homes in April 2020 was $809,000, up by 5.5% year over year. Closed sales this April (248) were down 22% year over year. Meanwhile, inventory for single-family homes dropped 45% from April 2019.

For condos, the median sales price in April 2020 was $450,000, up by 7.4% year over year.
Closed sales were down by 28% at 343. Condo inventory also dropped heavily, down by 39% from April 2019.

To sum things up: Inventory is down, prices are up, and days on market has decreased slightly—overall, sort of a balanced market. So, if you’re looking to buy or sell, now is the time to enter the market. As always, reach out to us via phone or email if you have any real estate questions. We’re here to help, and we look forward to hearing from you. Be safe, and Aloha!

How the Election Will Affect the Hawaii Real Estate Market

Today we want to talk to you about how the recent election will affect the real estate market.

 Want to sell your Hawaii Area Home? Get a home value report 

Want to buy a Hawaii area home? Search all homes for sale

There's some good news and there's some bad news.

First, the bad: mortgage rates have shot up since the election.

From a low of 3.64% in October, the average fixed 30-year mortgage rate increased to over 4.4% in January. Check out this visual of how interest rates are performing.

Economists are saying this kind of volatility is likely to continue, with day-to-day changes driven by the moves and statements of the new administration.

The good news is that there are plenty of reasons to be optimistic down the line.

Promised tax breaks for high-earners could reinvigorate sales of luxury homes, which have seen a glut lately.

This could have a ripple effect throughout the rest of the real estate market, spurring sales and construction of mid-level and lower-priced housing.

Also, looser financial regulation could make it easier for buyers to obtain mortgages.

One of the biggest challenges facing our market has been low inventory, and one thing we can say for certain is that our President-elect is a builder.

He wants to ease regulations for home builders, and an increase in new construction would certainly help ease the stress low inventory has caused on our market.

You might have seen that the stock market has been surging in the past few weeks.

That might be a vote of confidence for our President-elect and his anticipated business-friendly policies as the inauguration draws near.

It certainly seems things are getting back to normal as people come to realize the world's not ending.

In fact, many people who were waiting on the sidelines while the election was going on are now entering the real estate market.

It's a great time to take advantage of this if you are selling.

Home prices are near record highs. If you'd like to get an idea of what your home is currently worth, check out this calculator which takes into account recent Hawaii sales:

Enter your home address to find out what your home is currently worth

And if you're looking to buy, there are two things you should know.

First, even though mortgage rates have gone up, they are still historically very low, and worth taking advantage of.

Second, many new homes have entered the market since the election, and more new listings will arrive as the spring market approaches.

It's definitely worth investigating what's available around Hawaii right now.

If you have any questions, don’t hesitate to reach out and give us a call or send us an email. Thanks and Aloha!

How Elections Impact the Real Estate Market

Many of you may be wondering whether it’s a good idea to enter the real estate market during the upcoming election. It’s common knowledge that the real estate market weakens during these times, but there are many other factors to consider.

Real estate markets falter during elections mainly as a result of consumer confidence waning. A new leader will be elected, and that brings uncertainty and discomfort to home buyers and home sellers. A home is a huge investment, and historically, during periods of uncertainty, people have waited to make large expenditures.

What does all of this mean for you?

It depends on your wants and needs, and it also depends on who is standing atop the podium in November.

The truth of the matter is that the real estate market will always be in flux, and decisions like buying or selling a home will always be difficult ones to make. It doesn’t matter how good or bad the economy is, and it doesn’t matter who our next President is going to be.

“

Low inventory and low interest
 rates mean now is a great time
to be in the market.

”

Your best bet is to give me a call. Once you’ve given me all of the details of your specific situation, I can help you come to a more informed and rational decision about what to do, no matter if you’re buying or selling.

If you’re thinking of selling soon, receive a complimentary home value report.

If you’d like to purchase in the near future, browse our selection of available homes.

I look forward to continuing this conversation with you!

Kapolei Is a Boom Town!

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation 

Call us at (808) 426-7211 for a FREE home buying or selling consultation

Realtor Magazine’s April issue reported Kapolei as a boom town. Our very own Kapolei is outperforming the rest of the nation!

“

Realtor Magazine reported Kapolei as a boom town.

”

When it comes to new home construction, job creation, and household growth, research shows that the 30 hottest zip codes will see the most growth in households. If you’re thinking about buying, selling, or investing, Kapolei is not only a great community in the state, it’s 17th in the nation. Read the entire article here!