O'ahu Market Update - Prices Decline Amid a Drop in Demand

After months of demand declines, prices finally began to soften. The average sales price and the median sales price for homes took a 10.8% dive, landing at $1,139,294 and the median price for homes dropped below a million dollars ($970,000). The condo/townhome median price dropped to $495,000, which was a 2.9% decline. The average price of a condo increased slightly to $633,441 a 1.5% gain. 

A softer market usually means less competition for properties, allowing the buyer time and leverage to negotiate a price with the seller. Last month, buyers paid 95.9% of the list price. While this may not seem significant, consider the fact that buyers paid 101.6% of the list price during the same month last year. That’s a 5.2% change and, if applied to the current median sales price, that equals $50,440. That is a pretty chunk of change.

For those homes that sold last month, the median days on market was still just 24. Sellers can feel comfort in the fact that properties still sell within a month and the inventory of homes for sale is dropping, which could make this buyer leverage market short-lived. 

In summary, the market seems to be like a pendulum. The low inventory, and low-interest rate pandemic market swung sales high on one side of the pendulum, and now the quick rise in interest rates and prices has swung the pendulum in the other direction. As we journey through these volatile market changes, it is important to receive counsel from a professional Realtor who can guide you through these changes.

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

Can a Seller Break a Purchase Contract?

It’s a common scenario in a hot market – the buyer has their next home within their grasp, but then the seller backs out of the contract. How can this happen and what can buyers do about it?

Home sellers back out of signed contracts because of a higher offer, higher appraisal than the buyer’s offer or a financial or emotional problem, such as job loss or the death of a family member, according to Bankrate.com. Some sellers simply have mixed feelings about moving or resent the buyer’s demands.

If a seller wants to back out, there are three ways to do so without expensive consequences.

1. If the buyer fails to perform, such as not being able to obtain financing, failing to provide a deposit, or missing the closing date. However, the seller should have a provision in the contract regarding notice to the buyer to perform and then comply with those provisions to get away without penalties.
2. If a written contingency hasn’t been met by the buyer or if the seller included a contingency on being able to buy another home, but they’re unable, they can walk away from the purchase contract.
3. Last but not least, the contract should include an attorney review clause. They may find something in the contract that allows the seller to bail out.

Otherwise, the seller may be ordered by a court to pay the buyer a large amount of money or make the seller follow through with the sale.

How to Care for Your Home Fixtures

If you’re like many first-time homeowners, you may be watching your pennies by using the same cleaner on all your countertops, stainless appliances, porcelain sinks and tubs and other fixtures. But you can easily strip finishes, set stains and make other mistakes by using the wrong product. Here are some inexpensive and proven old-fashioned solutions for cleaning your surfaces.

A gentle diluted dishwashing liquid or soap and water will clean anything well, including wood cabinets. Just be sure to rinse and dry the surface with a soft cloth to prevent streaking. Don’t use bleach, glass cleaner, or abrasive cleansers on any countertop. Foodnetwork.com recommends using cutting boards, spoon rests, and trivets to protect your surfaces from accidental knife cuts, stubborn food stains, and heat damage from pots and pans.

Countertops - For granite, quartz, soapstone and marble countertops, don’t use acidic (lemon, ammonia) or abrasive cleaners, bleach or glass cleaner. To attack stains, make a paste with baking soda and warm water. Apply and let it sit for five or 10 minutes, then rub the paste gently into the stain. Gently rub in a little mineral oil occasionally to make the finishes last longer.

Stainless appliances – Soap and water work best. After drying with a soft dishcloth, apply a little mineral oil to cut down on streaking and fingerprints.

Porcelain sinks and tubs – Bleach strips porcelain finishes, so use hydrogen peroxide or white vinegar to clean without scrubbing. For stubborn stains, use a little Naval Jelly and rinse thoroughly afterward.