While the Oahu Market holds steady in March, it’s likely that the full effect of the slow down due to COVID-19 has not been felt yet. Since the stay-at-home order was issued on March 23rd, the industry has made swift changes to evolve business practices and therefore has not halted amidst the unfolding global crisis. Deemed essential and a critical driver of the economy, the fact is that while we may see a slow down due to the pause on economic activity, consumers should feel confident that there is nothing fundamentally wrong with the housing market and real estate may even be the smartest investment you can make right now.
In the time of COVID-19, life events still happen and that means there is always a need for real estate. The real estate agents at Berkshire Hathaway HomeServices Hawaii Realty are trained professionals ready to help negotiate through life’s unknowns and help identify potential opportunity in an ever-changing world.
Reasons to Stay Positive – this is not 2008
- Since the Housing Bubble it has become a lot harder to qualify for a mortgage.
- Compared to the years leading up to the bubble, price appreciation is stable, not out of control.
- In 2008, we had an oversupply of homes on the market. This time we have an undersupply. 8.2 months in 2007 compared to 3.1 today.
- Today, much less of the average family’s monthly income is going toward mortgage payments. 25% percent of median income needed to purchase a median priced home in 2006 compared to 14.8% today.
- Leading up to the Bubble, Homeowners used their houses as ATMs. Today, equity is handled much more cautiously. $824B 2005-2007 total equity cashed out compared to $232B 2017-2019
Why now is a great time to consult a BHHS Agent.
- BHHS Agents are prepared to be your trusted advisor as you evaluate opportunities presented by changing economic times.
- BHHS Agents are nimble and have easily adapted business to safely represent their clients' interests with both Buyers and Sellers virtual programs.
- Interest rates are at an all-time low. There is no better time to qualify for a mortgage and be able to buy the home of your dreams.
- Because interest rates are low, Buyers purchasing power is up. This is good news for Sellers.
- Buyers should start their search now. There is a home shortage now and in the coming months there may be a surge of homes coming on the market. Now is a great time to start getting a feel for what you want.
- Viewing homes from the comfort of yours has never been easier! Video walkthroughs and 3D tours are excellent ways to start your search and even find the home or investment you have been looking for.