Inventory of Homes for Sale has Begun to Increase!

According to the Honolulu Board of REALTORS® Monthly Statistical Report (Results through April 2022), active inventory of single family homes for sale increased by 3.7% compared to the same time last year and 9.7% as compared to the prior month (March 2022). Buyers have been waiting for years for more homes to choose from and a neutral market after a half-decade of hyper-competition and limited choice. That said, while inventory is increasing for single family homes, the opposite is occurring in the condominium and townhome segment, which experienced a 19% drop as compared to the same month last year.

The median sales price for both homes and condos increased dramatically, as compared to the same time last year, but were both slightly lower than the previous month, settling in at $1,105,000 (homes) and $510,000 (Condo/Townhome) for April 2022. One indicator to keep an eye on is the pending sales measure, which was down 18% for homes and 8% for condos as compared to the same time last year. This could either mean the market slowed because there was nothing for buyers to purchase or it could indicate that the extreme pent-up demand could be waning.

What does that mean for buyers and sellers? It could mean that buyers will continue to face multiple offers, but not as many as in the past, fueled by years of pent-up demand. However, buyers in the market for single family homes should have a few more choices with the increase in home inventory. Sellers are still able to sell quickly (10 days for homes and 12 days for condos) and above asking price, as evident by the “Percent of Average List Price Received” of 102.6% for homes and 100% for condos.

In any event, it is important to be in contact with your real estate professional more often as the indicators are a bit more volatile than they have been in the past.

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

House Flipping 101

Home improvement television makes flipping homes look so easy that anyone can do it. But the reality is much different. You can make a lot of money or lose money due to problems that slow down your timetable and increase your risk.

There’s a reason why flipped homes are only a small percentage, about 6.2%, of the market. As an investor, you’re buying a property to sell quickly at a profit. You have to know the market and adhere to a strict acquisition formula to meet your estimated after repair value (ARV). The ARV informs your asking price that will both attract homebuyers and meet bank appraisals.

A hot market, with a low supply of homes and rapidly escalating home values, is ideal for flipping because buyer demand and price appreciation are “built-in.” But if homes to buy are hard to find, you may have trouble staying within your budget. 

The flippers who make the most money are full-time professionals who use cash to buy homes, do all the repair work themselves, and sell the home themselves. They know the market well enough to negotiate the right purchase price and have the skills and experience to estimate improvement costs accurately and make the improvements that appeal most to homebuyers. They know how to minimize out-of-pocket expenditures such as mortgage payments, utilities, property taxes, insurance and other costs of home ownership.

Can you do the same? If not, then buying and holding a home may be a better idea for you than flipping.

Set the Mood with Lighting

Every space in your home has multiple functions requiring different lighting.  Even within the same room, you’ll need multiple light sources to set the right mood for the time of day and the activities you have planned.

Lighting comes in five major categories:

General purpose - any lighting fixture that is plugged into an ordinary socket, such as lamps or overhead fixtures.

Decorative - any lighting where the bulb can be seen, such as a chandelier, bathroom strip lighting, pendant lighting or sconces.

Track or Recessed - lighting that is usually a floodlight or spotlight on tracks or recessed fixtures.

Specialty - unusual lights found in appliances or furniture such as cabinet lighting and appliance lighting.

Outdoor - lighting that is specially designed for use outdoors, such as security lights, lamp post lights, porch or entry lights.

The key to mood lighting is temperature. Lighting is either cool or warm, so the bulb you choose can put out yellow, soft white, bright white or natural daylight. Smart bulbs connect to mobile devices to be turned on and off, dimmed or brightened, or color changed with an app.

Layering your lighting gives you more options. Overhead lighting on tracks, ceiling fans, or recessed lighting provides central lighting. Floor lamps or torchieres, uplights, and downlights can accent architectural features and art displays. Sconces add stylish indirect light anywhere you place them.

Be sure to check any fixture you buy for the manufacturer's instructions on the type of bulb and maximum wattage allowed.