Keeping it Real Estate

Interest rates went up quite a bit in just the last month, from 7.0 to 7.5%. This is slowing down the buyer activity but not really affecting prices because the inventory is still low. Most homeowners have a much lower interest rate and so they don't want to sell their property and deal with the higher interest rates of today's market. Most would be sellers are opting to use their property as a rental instead of selling it. There's not as many buyers out the shopping right now, but the smart ones are getting really good deals right now in terms of a lower purchase price and seller credits. They are opting for highly leveraged loans, ARMs, and getting lender credits back with negative points and making the interest rate even higher in hopes that it will go back down soon and then they can refinance into something more stable. It's much more easier to shop around now with the decreased competition than it is once the interest rates come back down.

As far as the sales stats go for last month, the median price for a single-family home was $1,050,000 down 4.5% and condominiums were $532,000 which is actually up 6%. The median days on market for both single-family homes and condominiums is about three weeks. Close sales are down 16.5% for single-family homes and down 24.2% for condos. New listings are down across-the-board and months. Supply of active inventory is up a bit at 2.7 for single-family homes and 3.0 for condominiums. It's still a strong sellers market as six months is the threshold for when it changes from a sellers market to a buyers market, something we haven't seen in Hawaii in the last 20 years. Are you interested in making a real estate move in the new future whether buying or selling property here in Hawaii? Let me know so I can help.

Hey it's Ben Fieman with your July 2023 Oahu real estate market update. Hope your summer is going well. The average 30 year fixed mortgage has an interest rate of about 7.14% right now. Current inflation is at about 2.97% so we are approaching the feds target of 2%. What is this doing to our market here on Oahu? Not a whole lot. Median single family homes are at $1,050,000 island wide and condos are at $510,000, both down just 4.5% vs last year. Days on market is up 7 days when compared to last year, but picking up speed when compared to this year’s winter and spring months. New listings are down 17.1% for single family homes and down 22% for condos, most homeowners are sitting on a lot of equity from the recent appreciation and have a low interest rate so they are not looking to get rid of their mortgage. Because of this closed sales are down 30.5% for single family homes and down 24.9% for condos. My prediction is we will remain relatively flat until inflation goes back down to about 2% then when interest rates get back to about 5-6% there will be a flurry of activity. Everyone’s real estate goals are different so please reach out regarding your particular situation so I can see how I can help. Thanks for tuning in and I’ll see you next month in August for your Oahu Real Estate Market Update!

June 2023 Oahu Real Estate Market Update: Hope your June is going well so far! I'm starting to notice multiple offers on listings again and it's starting to feel a little like 2022. But there are also a lot of escrow cancelations and the buyers in today's market seem very fickle in their decision making. Before when a buyer went into escrow it was like winning the lottery. Now it feels like they must be making a mistake and so they cancel at the slightest discomfort. ⠀

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For sellers it's important to find a buyer who you think will actually close instead of offering the highest amount in today's market. Inventory remains low because Hawaii homeowners are sitting on so much equity due to the recent appreciation in our market and most likely they have an interest rate at around 3% which they don't want to lose by selling. Buyers are starting to accept 6% as the new norm for interest rates and willing to stomach it for now and hope that it will go down in the future so they can refinance. ⠀

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When looking at last month's numbers it's much of the same story. Median price just down very slightly from last year, closed sales down by about a quarter, and days on market about doubled. Unless the interest rates go up further to 8%+, it looks like the worst of the market decline is already behind us. ⠀

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Each neighborhood and condominium is unique so I'd love to hear more about what is important to you so I can help offer real estate guidance backed with data. Enjoy the rest of your June!

Today's more than ever with the softer real estate market you can upgrade your home with ease. We spend most of our time at home and so it's important to our happiness to absolutely love every aspect of it. If there's something you wish you had different in your home such as an extra bedroom or bathroom, a home office, a swimming pool or jacuzzi, more land and privacy, a better view, or switching to a condo or single family home, then now is the time to do it!
Ask us about our Sell, Stay, Buy program where we will sell your current home for top dollar, find a buyer who is willing to let you stay in your home for 60 days after closing with the proceeds in your bank account, and then buy a new dream home with lots of time to shop around for the right property so you only have to move once.
Timing of the market doesn't matter when you are doing a Sell/Buy so make that move today! Life is too short to not absolutely love where you live. Contact us today and we can make the process as easy as possible while keeping as much money in your pocket after it's all done.

If you are renting and don't own property yet, don't try to time the market. As soon as you have the financial ability to make a purchase, buy something even if it's not your dream home. If you are getting an amazing deal on your rent maybe buy an investment property instead of something for you to live in. Eventually that property will increase in value so it's important to get started as soon as possible. Your first purchase will most likely turn into your first investment property at some point. If you are using cash only instead of a loan, flipping a property, or just trying to get in and out of the market then you might want to try and time the market a little more and make your purchase when it's more of a buyer market. The hard part is when times are difficult it's usually difficult for a reason and adds a layer of difficulty for you to make that purchase.
When selling a property, the spring and summer months tend to have more buyers because more life changes are occurring. People are getting new jobs, kids are getting into new schools, and travel is picking up more. Therefore there are usually more buyers shopping in the spring and summer. In the winter months from Thanksgiving to New Years not many buyers are looking to move during the holiday season.
Everyone's situation is different so lets meet at my office so I can learn more about your specific situation and what's most important to you.

What is Compass Concierge? We will front the costs of repairs, renovations, and anything else related to the sale of your home in order for you to make your home more presentable and achieve a much higher sales price! You can choose any of your own materials, vendors, or contractors and not have to pay anything out of pocket. You will receive a debit card and checkbook and whatever you spend gets reimbursed dollar for dollar with no added interest or fees either at the close of escrow when the property is sold or 1 years time, whichever comes first.
Every dollar spent with Compass Concierge to make your property more desirable for buyers will about 3x your sale price. Contact me today to learn more about this amazing program to help your friends and family get their property sold for the highest possible price!

April 2023 Oahu Real Estate Market Update: Much of the same has been happening in the Oahu real estate market. Single family homes are down slightly and condominiums are up. This is possibly due to the fact that some buyers are paying for condominiums in cash but single family homes are still out of reach for cash buyers and thus more affected by the higher interest rates. Closed sales are down and days on market are up across the board showing not as much buyer activity when compared to last year. Interest rates are hovering at about 6.5% when it was half that amount a year ago. Every neighborhood and condominium on Oahu is different so if you have any particular questions or want to talk real estate more specific to you, just reach out to me and I'd be happy to offer my guidance.

Do you like your home but not love your home? Do you wish it had an extra bedroom or bathroom, it was closer to family or work, or was a littler nicer and newer? Life is too short to not absolutely love where you live. So here’s a video on how to do a sell/buy so you only have to move once!There are 2 options. 1) Put your home on the market but make it contingent upon finding a replacement property. 2) Sell with a 60 day rent back so you can have the proceeds and have time to shop around for your new home. 

This is much better than selling, renting for a while, and then buying again which will make you have to move twice instead of once. Whenever you do a sell/buy, the timing of the market doesn’t matter because while you might have an easier time on one side either selling or buying, the other side might be the opposite. It can be hassle free so don’t delay. Make that move and live in the home of your dreams!

The main story from last months numbers is Single Family Homes are taking nearly 4 times longer to sell, and Condos are taking 2 times longer to sell compared to 2022. Average days on market for a Single Family Home is 47 days now compared to 13 days just a year ago. The median days on market for Condos doubled to 28 days compared to 14 days last year. The median Single Family Home price is down -12.3% versus last year but that’s still only about half the amount of appreciation during 2021-2022. Condos are only down slightly at -3.4% which I believe is due to the fact that Condos aren’t as dependent on interest rates as Single Family Homes because a lot of the time they are purchased with cash.  With Silicon Valley Bank going down we think the Feds will stop raising rates for now and could even lower them slightly in the short term. If that happens there could be increased sales activity. It’s important to keep an eye on interest rates week to week or even day to day to see if there drops that could help you get a low mortgage and a really good price on a home.  If you have any questions about the market or your specific real estate goals please reach out and I’d be happy to offer my guidance. Thanks for tuning in and see you on next month’s Oahu Real Estate Market Update!

For the first time in a long time Oahu median home prices actually came down, 7% for single family homes and 3% for condominiums. There's no need to panic because it's nowhere near the amount of appreciation our market experienced in the last 2 years, but it is worth noting as buyers have more opportunities in today's market than in years past. More expensive financing is putting some downward pressure on prices and sellers will have to adjust in order to meet new decreased buyer demand from increased interest rates. Average days on market are now 24 days and so while there are still fewer new homes coming on the market, inventory is starting to grow because properties are taking longer to sell.  My buyers who are winning are the ones offering 10-15% below asking and still going into escrow with seller credits. My sellers who are getting their properties sold are the ones who are being patient in finding a buyer, making it move in ready, and pricing according to the higher interest rates. Here's the change that many buyers asked for so lets see who makes a move. Like I always say, it's more important to find the right property and a motivated seller than it is to try and time the market. There are opportunities out there!