The residential real estate market showed continued strength in March. The condominium market experienced a stunning 53% increase in the number of sales reaching a high of 626 transactions versus 446 in the prior month.  Single-family sales also showed strength with a 17% increase in closed transactions.  Condominium sales have largely lagged the single-family market over the past year largely due to recent restrictions on vacation rentals, the slow down in tourism and changing buyer preferences due to COVID.  Limited inventory and record prices for single-family homes and the return of visitors to Waikiki have all contributed to a rebound in sales of condominiums.

Homebuyers are getting a lot of mixed messages this year. Interest rates are near record lows, but housing prices are still rising. So should you continue to rent or go ahead and take the plunge to buy? That depends a lot on both your needs and where you live.

You may be wanting more space for home offices, play areas for kids, and more.  You may not have to be close to work, which is one reason why there’s a current exodus out of expensive cities like New York City and San Francisco to suburbs or smaller towns. Another reason is cost.

According to HomebuyingInstitute.com,  home prices will almost certainly continue to rise through 2021, primarily due to limited supply and strong demand. Interestingly, the pandemic appeared to fuel the housing market. Realtor.com reported that median home listing prices rose 15.4 percent between January 2020 and January 2021. And, in the 50 largest U.S. metros homes sold 12 days faster in 2021.  

At the same time, the number of homes for sale in January was down 42.6% year over year. That means 443,000 fewer homes for sale which only exacerbates demand.  

Mortgage interest rates hit record lows in January 2021, with nowhere to go but stay the same or go up. You may want to take advantage of that to keep monthly payments low before housing prices rise further.   

Meanwhile, some home markets may level off, while others like Austin, Seattle, Hawaii, and Tampa are expected to heat up. 

When you buy a home, plan on staying there for approximately three to five years. Why? You’ll need equity in order to sell the home without losing money.

Equity is your percentage of ownership VS how much the bank owns. With any mortgage loan, the first few years of payments go more toward paying interest than reducing your principal. To build enough equity to sell at break-even or a profit, you’ll have to recoup closing costs and fees as high as 14% in some areas. To build equity over time, do the following:

Put more money down. If you put 20 percent down, you’re in good shape, but if you put down 3.5%, 5% or 10%, it will take longer to build equity, so be patient.

Pay your mortgage on time and in full. Paying principal builds equity. The more months you pay, the more equity you’ll build.

Make additional mortgage payments. You can add an extra $50, $100, or any amount per mortgage payment. This will also help you get rid of private mortgage insurance or allow you to refinance to a PMI-free loan once you reach 22% equity.

Let time and the housing market work for you. The housing market typically rises one to two percentage points above inflation annually, but if you’re lucky, your home may gain much more value than that.

Building equity takes time, money and luck, which is why following the five-year equity rule will help you plan when to sell your home.

I first met the owner to this property last October. We discussed various things like why he wanted to sell, what his future goals were, which included sizing down, so he could travel more. In preparation to sell, we made a list of things to do, which included to purge over 50 years of accumulation, paint, and give minor fixes to the house. It took several months to get the seller ready, but we got there. This was a fast and furious sale. We went to market on a Wednesday, and within 5 days, we received 24 offers, selling $200,000 over the asking price in 30 days. Marketing was in the works for approximately a month prior to activating the listing ie: staging, networking, photos, and advertising preparation. This process sounds relatively easy, but I want you to feel that way, because it is my job for my clients to have a great experience.  

The seller depended on my guidance and experience to get the job done. 

Let's discuss and strategize your plans ahead of time, so when the timing is right, you will be comfortable with your decision.