Real Estate Service Powered by Innovation
It’s that time of year, and I’m happy to be supporting the Friends of the Library of Hawaii in celebration of Read a Book Day 2023! Starting September 20th, I will be collecting your book donations and dropping it off at the Friends of the Library Hawaii charity, supporting our public libraries! It’s a great way to support our community, and I hope you’ll join me!
Are you prepared?
While some natural disasters are infrequent (like tornadoes), Hawaii is geographically positioned to be high-risk for Pacific hurricanes. From June 1st to November 30th, our risk becomes even greater as we enter “hurricane season.” NOAA is predicting a near- or above-normal hurrican season,so it’s important to make sure you are prepared if a storm should hit. Below are some guidelines and resources you can use to get yourself ready this year!
[Read more…] about Hurricane season is here!
May shows signs of “summer heat” as the market continues to suffer from inventory and interest rate concerns. Let’s take a look at the market statistics for May and see what conclusions we can draw!
[Read more…] about Monthly Real Estate Market Report – May 2023Let’s take a look at what the stats revealed last month and see what trends we might see throughout the hotter months of the year!
Another tax year will be in the books and another reason to celebrate Earth Day in 2023! Bring your unwanted documents down to our office to be securely destroyed and recycled for free!
Shred-It trucks will be at our office parking lot on Saturday, April 29, starting at 9:00 am with their document shredding truck. This is a free event, sponsored by my brokerage, so bring as much stuff to shred as you’d like!
Volunteers will be on hand all morning collecting your shredding items for the truck. Hope to see you all there, and thank you for supporting our event!
Spring is March-ing along, and while the stats will show another sluggish month in our local real estate industry, the market mood has much more “spring” to it! Let’s take a look at the stats from last month try to interpret this VERY interesting market.
While single-family home prices rose over last month, they were down again versus last year. As mentioned last month, the market in the beginning of 2022 was on fire, so comparing the two years is “apples and oranges.” The most interesting number though was the number of days that homes are sitting for sale before they go into Escrow. That number shot up to 47 days on average last month, which is timing we haven’t seen since the condo market at the beginning of the pandemic. This should be an anomaly more than a trend, as inventory numbers shrunk versus last month. In the condo market, sales were up almost 20% versus last month but are down 33.1% year-over year. Prices are only down 3.4% versus February 2022, dropping slightly more than expected.
As the fed continues to raise the federal funds rate, mortgage rates struggle to stay below 7% nationwide. As the inflation numbers slowed during January, there was hope that would ease rate hikes, but not enough has been done to cool market activity. In the real estate industry, this has placed a lot of pressure on homebuyers, some of whom have lost 40% of their buying power versus the rates last year. You can see it reflected in the length of time on the market and plateauing median prices, as financed-backed buyers struggle to either recalibrate their expectations or exit the market entirely.
Buyers are not the only ones making decisions based on the rising interest rates. Home sellers are also adjusting their expectations because of this same pressure on Buyers. Less properties are being listed overall, as Sellers question the efficiency of the market they’d possibly be entering now. Some sellers are also feeling like they’ve “lost money,” comparing their situation to the market we had last year. Whatever their personal reason is, it’s continuing the drop in new listings on the market, tightening the little options that buyers have.
It’s the month of love, but has our real estate year kicked off with the same feeling? With January in the books, let’s take a look at the overall island market to see what the data is showing us and see if there are any trends we can see early in the year!
You can’t deny that seeing falling numbers versus last year is not something that prospective property Sellers want to see. With both the median price of single-family homes and condos falling 7.6% and 2.9% over the same time last year, and the number of closed down about 50% for each as well, the market did feel the slow down most predicted over the holiday season. These numbers are not surprising as rising interest rates hit recent highs as well, combining both a slower Buyer season and tougher sales prospects.
The headlines from this latest release of sales statistics highlight the large downturn in number of sales and median price. However, be careful trying to read too much into these as they are compared to a very different January in 2022. Rates were half of what they are today, Buyers were offering extreme incentives in their offers, and competition was way higher. The danger in how we compare these two different selling markets is that we sometimes place value on one over the other. Homes are still selling in today’s market, so don’t think the sky is falling just yet.
The federal reserve is doing its best to slow down the economy and curb inflation. In doing so, mortgage rates have climbed higher and higher compared to this time last year. While there is some signs inflation is slowing, it doesn’t seem to be exactly where the fed wants it to be and they expect some further rate hikes coming soon. If consumer mortgage rates continue to rise over the next few months, we will continue to see fewer sales and possibly further softening of median prices. I still don’t expect to see the type of market retraction that you see in other real estate markets around the country, but it is inevitable that higher rates = higher borrowing costs for buyers = less buyers can afford = downward pressure on median home prices. Exactly what the fed wants to see, but might be tough for prospective Seller’s who think they can still list high like last year.
That’s all I have for this month, see you next month!
Nick
Happy new year! I hope your holidays were full of family, fun, and health! Overall, it felt like the real estate market ended the year in a much different place than 2021, but as we look at the year-end stats, we see that some trends (like median price) continued on the same pace as 2021. This summary is an in-depth look at last years market, as well as some opinions on what to look forward to in 2023!
[Read more…] about 2022 Year-End Real Estate Market Recap & Opinion