If you’re thinking about buying or selling a home this year, you may have questions about what’s happening with home prices today as the market cools. In the simplest sense, nationally, experts don’t expect prices to come crashing down, but the level of home price moderation will depend on factors like supply and demand in each local market. The median single family home here on Oahu still showed an increase in sale price by 9.5%, year-over-year, up to $1,149,500 while for a condo they have dipped, year-over-year by 4% to $480,000.
Here in Hawaii, we are seeing a larger inventory of active homes on the market, 175% for single families and 45% for condos priced $400,000-$2,000,000 (condos priced under $400k are actually down 11%, most likely because prices have risen) – this is not because an influx of homes have newly been listed, but rather homes are sitting a little longer on the market. We never truly see a “buyer’s market” in Hawaii as there is never enough supply, but the market has been stabilizing, similarly to the mainland.
What does this mean for Hawaii homebuyers? This is actually a GREAT time to purchase, why you ask? Because a year ago, up front you were not only paying your down payment and closing costs, but frequently, you were also covering appraisal gaps, termite fees, etc. Today, the number of single-family homes selling over asking has decreased 73% and for condos 68%. This gives buyers loads more negotiating power – allowing us to get you a better deal! While we are seeing listing priced sales, we are actually seeing significant seller concessions – where the seller is helping cover closing costs and interest rate buydowns for the buyer. And if you’re getting a VA loan – man there’s even more we can put money towards! (Email us we’re happy to elaborate) The VA allows upto 4% of the purchase price!
For sellers, your life situation might mean you need to sell. (However, we might try to talk you out of it ;)) But if you are going to sell – make sure your property is the STAR of the show. Now is the time that great listing agents are super important! The beautiful, shiny properties are still moving, may have multiple offers and the need to negotiate, is slimmer. The right agent knows how to properly market and sell your property so people are excited and offers come in. Here is an example of one of our previous listings and one of the marketing efforts we put towards our listings! Hawaii Home Group Listing Landing Page.
So with all that said, if you’re thinking of buying or selling, but the media has you nervous, reach out, let us help run the numbers to see if now is the right time.