O'ahu Market Update

A massive shift in leverage has occurred over the last six months and that leverage applied downward pressure on sellers’ list prices. According to the Honolulu Board of REALTORS® Monthly Statistical Report, last month home sellers sold for 96.7% of their list price, while condo sellers sold for 98.5% of the sellers' list price.  That’s a far cry from the 102% buyers had to pay just 6 months (100% for condos) ago. The shift was a result of more choices for buyers to choose from, less competition between buyers for properties and time to make their decisions. In fact, days on market for homes that sold last month jumped by 127% for homes and 63% for condos. It took 25 days for home sellers and 21 days for condo sellers to accept an offer for the homes that sold last month. Additionally, the number of homes for sale rose by 93% for homes and 23% for condos.

The good news for sellers is that those numbers barely affected overall home prices as the median sales price and the average sales prices saw very little movement. The median price for homes that sold last month was $1,045,000 which is a 0.5% drop compared to the same month last year, while the average price actually rose by 1.7%. The median price for condos increased by 3.6% to $502,500 while the average sale prices dropped by 4.6%.  Why didn’t prices go down? More than likely, we are still experiencing a lack of housing overall on the island of O'ahu, which stabilizes home prices and keeps them at high price levels. According to the Department of Economic Business Development and Tourism (DBEDT) we are on track to be short 46,000 housing units by 2030. “What will happen in the next few months,” is a common question we hear have from our clients. It is most likely more of the same as short-term indicators, like Inventory In Escrow, is down compared to last year by 47% for condos and 45% for condos. Since escrows typically take 45-60 days to close, these figures provide us with short-term predictions for the market.  

Read the full report from the Honolulu Board of REALTORS® here.

Property Management for Second Homes

Property management and home watch companies offer a wide range of services for second-home owners. From routine maintenance to concierge services, they can protect your property from potential problems during your absence and make it turn-key ready for your visits.

Costs vary among providers depending on the types of services you want, the frequency of inspections, whether you have a swimming pool or other water features, along with the size and location of the property. 

The inspection you’ll most likely need is monthly testing of all appliances and systems in the home, including alarm system, air conditioner and plumbing to make sure they’re working properly. The property manager will also notify you of signs of wear so repairs can be made.

Concierge services can include hiring and supervising housekeepers, landscapers, pool cleaners and repair professionals. Property managers can accept deliveries for you, forward your mail and prepare your home for your arrivals with groceries, fresh flowers and ironed linens. If you rent your second home annually, including short terms and peak seasons, your property manager can advertise the property for rent, vet renters, collect payments, and clean up the home when guests depart. 

A written contract should detail exactly what the property manager is to do as well as fix the fees for the term of the contract. To find the best property manager, ask friends and neighbors who they use, or contact your Berkshire Hathaway HomeServices network professional for referrals. Interview several property managers to compare prices and services.

Home Decorating Trends Making a Comeback

Sooner or later, all interior design trends change, and often in the opposite direction. After years of cool minimalism, homeowners are turning toward warmer, cozier colors, fabrics, and wall coverings to maximize comfort. So what’s old but new for home décor in 2023?

Greens and other warm neutrals

Colors come in two ranges – warm and cool, and warmer colors are seizing the moment away from greys and pure whites. Golds and avocado greens from the 1960s and 1970s revolutionized kitchen appliances making complementary autumn colors like oranges, tans and browns wildly popular. If you like the look of clean look of white and grey, but want trendier colors, try cream, beige and other earth tones instead. 

Texture everywhere

Texture gives neutral colors like beige, stone and greys more interest. Not since interior designers Dorothy Draper and William Haines popularized “Hollywood Regency” in the 1930s, ‘40s and ‘50s, has opulent maximalism been revived as well as it is today. Apartmenttherapy.com recommends getting the glamorous look with gold or shiny metallic accents pieces, jewel tones such as emerald green, mirrors with speckles and sparkle, a touch of Chinoiserie fabric on chairs or in wallpaper, and crystal chandeliers. Plaster, a lime-based putty, adds depth to colors and textures. You can achieve this look with special paint finishes.

Wallpaper scenes

In the 1920s, wallpaper was the ultimate status symbol, according to SouthernLiving.com. Murals and larger repeat prints give interiors unique personality, texture and color. And unlike removal in the past, today’s wallpaper is peel and stick.