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!

What home improvements to focus on before putting your property on the market? Focus on fresh paint and new flooring. If you still have a budget left over after those 2 items, then focus on upgrading the kitchen and bathrooms. That way you can maximize the sales price for your property.

There's a lot of lowball offers being offered on properties especially in today's market. So what should you do as a seller if you receive one? You never know how much higher a buyer is willing to come up unless you send them a counter offer. I have had buyer's lowball in the beginning and then come up close to asking. It's important to not get emotional and keep the conversation going. You never know, they might be the right buyer for your property!

Prices are staying about the same at $1,049,500 for SFH and $502,500 for condos, closed sales are way down about 40% showing a lot less sales activity, and days on market are much longer at 25 days for SFH and 21 days for condos. Interest rates have settled to about 5-6%, buyers are coming back after the holidays, and properties are not flying off the shelves like they did during the pandemic but it's much more normalized. Each neighborhood and building have their own unique characteristics so be sure to reach out for specific information. Enjoy!

In the previous market you could price your home at almost any price and it would sell. In today's shifting marketing, you have to pay more attention to pricing. The sweet spot is at about 98% of what the comparable sales say it should sell for. Your goal is to find a least 2 interested buyers who become emotionally motivated to purchase the property and bid the price up to offer above market value. That way you can maximize the sales price of your home.

Just because stocks go down does it mean the real estate market has to go down? And how strong is the correlation between the interest rates and buyer competition? In this show we partner up with friends from different industries to see how the market is in the different fields we work in and our predictions for 2023. We have Marissa Ka @rissamei from Veterans Mortgage Source talking about the mortgage industry, Kyle Shimoda @adventuresofalinea of Inpac Wealth Solutions discussing the finance industry, and myself @benfieman of Compass Hawaii giving updates on the real estate market here in Hawaii. Would love to hear any insights and questions you might have yourself and hopefully you can navigate through 2023 with success and opportunities. Enjoy!

We have seen the fastest interest rate increase in history but they have seemed to settle at about 5-6% for now, versus 2.5-3% 9 months ago. Even though every 1% increase is 10% less buying power and affordability has gone down, there’s no need to panic. Interest Rates in the United States averaged 5.42% from 1971 until 2022, reaching an all time high of 20% in March of 1980 and a record low of 0.25% in December of 2008. Therefore we are back at our average.

There are ways to lower your interest rate even in today’s market. 1) Ask for credits from the seller to pay down points. 2) Opt for an ARM instead of a 30 year fixed mortgage. 3) Use cash to pay down principal so you end up paying less interest to the bank.

It’s much better to get a good deal now below asking, with seller credits, and lower the interest rate in the future or pay it off.

Median single family home prices on Oahu went up 9.5% vs November of last year! While some keep waiting for a potential crash the market moves further and further away. Condos did go down by 4% to $480,000 with perhaps more inventory choices there. Instead of waiting for interest rates to come back down, why not buy now with the decreased buyer competition, get a good deal, and then refinance later when interest rates go back down? No crash or drop in prices will be significant enough compared to the amount of appreciation we have experienced in our market in the last 2 years. Interest rates actually dipped back down a bit and most of my buyers are looking at 5-6% instead of 6-7% just a month ago.

Been having this debate a lot lately: When flipping a home should you renovate all out or just do lipstick and get it back on the market as soon as possible? I recently had 2 investor clients flipping properties at the same time. One of them went all the way renovating everything top to bottom and using high end finishes. The other just changed out the main things like flooring, new paint, and new appliances, but left some things for a new buyer, such as old cabinets and AC. The fully renovated home sold right away for full asking and the partially renovated home sat on the market for a while and sold for less.

1) Usually 20% is due up front and the remaining 80% is due when complete. It usually takes about 3 years to build a condo in Hawaii. 2) Usually you have to pay the conveyance tax on new projects from the developers and again as a seller when you resell. 3) Having an agent represent you on the purchase doesn’t cost you a thing and it’s a good idea to have an extra set of eyes so you can pick the right unit and make sure everything goes smoothly.