Mixed bag of news as pandemic hits its summer stride
Hi Everyone, happy September…wait, what? It’s September? Now that time seems to be flying by again, does that mean I’m getting used to the pandemic life? Of course, being under another stay-at-home order is no fun, but hopefully you’re being safe and healthy as we navigate these quickly-changing times! Here’s a brief breakdown of the current real estate market on O‘ahu, and some other tidbits from me…
Single family homes hit a record-high in median price
Here’s a quick math problem. What does Quarantine (Q) + Low Interest Rates (Ir) equal? The answer? A record-high median price for single-family homes. It seems the demand for quarantine garden space, the avoidance of crowded elevators, and sub-3% interest rates are fueling the single-family home market as homebuyers battle for land. Of course, there are nuances for each individual circumstance, but with no signs of the pandemic letting up anytime soon, I expect to see near-record sales numbers for single-family homes continue throughout the end of the year.
Median price for condos also jump, but with less enthusiasm
The median price for a condo has also jumped 2.5% vs. this same time last year, but I would caution against the thought that condos are also in the same demand as single-family homes. Closed sales for condos are down 20.1% vs. last year, meaning more are left sitting on the market. Thankfully, this does show that the condo market isn’t collapsing, as Seller’s are still holding out for pre-pandemic pricing amid the longer marketing times.
Buyers are facing competition, sellers remain patient
For single-family homes, buyers are facing stiff competition as prime homes are seeing double-digit offers coming through. On the condo side, Sellers are remaining patient with their listings and do not seem to be accepting as many low-ball offers as you’d might expect. The median price jump alone shows that condo Sellers are still commanding higher prices and relying on pre-pandemic comparable sales to price their listings. Moving forward, I’d expect to continue to see this, especially if we see longer eviction moratoriums and further stimulus packages sent out.
Planning for the upcoming holiday season
I’m guessing I’m not the only one having family conversations about holiday Zoom parties and stay-at-home trick or treating? If so, let’s also talk about the upcoming holiday real estate market and what to look forward to. Normally in September, I’d start reminding you that the holidays are approaching so any real estate plans should start moving this month, before the slower holidays kick-in. However, with the probability that we will not be physically social this holiday season, that may mean buyers will be more active than normal. I personally think we’re still going to find ways to fill our social schedules with Zoom parties and smaller family gatherings, but maybe the lighter social calendar will change all that. As with everything else under this pandemic, we’ll just have to wait and see.