OVERVIEW OF 2021

With a full year’s worth of data to analyze, we can see some important trends emerge when we compare what has felt like a landmark year in 2021 to market years prior. In the big picture: 

• The total value of real estate transactions in 2021 was 37% more than in 2020, with steeper increases in the condo market than in the single family home market. 
• Really robust buyer demand drove a huge drop in inventory, which made competition in some areas really fierce. Here’s how you can tell:
  • the percentage of properties sold over the asking price - 36.8% on average, with some areas over 50% 
  • the median days on market - less than half of how long properties sat just two years ago (9 for single family homes, down from 14 in 2020 and 22 in 2019, and 12 for condos, down from 24 in 2020 and 25 in 2019).

 

So what does all this mean as we start fresh in 2022? Trends clearly indicate that the market is on a steady growth trajectory. We know interest rates are set to edge upwards in 2022, which will continue to make affordability increasingly tight the further we get into the year. With active inventory getting snapped up quickly, this is a great time to list property; for buyers, it’ll be important to move fast when you fall in love with a property, as competition for desirable homes is only getting more fierce heading into the new year.

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

Add Pizazz to Your Bland Kitchen

Neutral kitchens are supposed to complement any décor, but they can become bland over time. What can you do to make your kitchen more exciting?

Make it artsy

Art galleries have neutral walls because they don’t compete with the art, so hang a colorful abstract painting in a key location. Have fun with artistic-themed dishtowels, placemats, and dishes, instead of classic motifs like roosters and other farm animals or Italian chefs with curling mustaches. Try a washable rug or runner with a colorful modern pattern.

Fold in some color

Neutral décor is decorating for the next occupant of your home, so put yourself first in items you can take with you when you move. Find your favorite color in cookware, serving pieces, utensils and small appliances to add cheerful interest to a neutral decor.

Add texture

If color isn’t your thing, interesting shapes and textures add vitality to neutral walls, backsplashes, curtains and blinds and kitchen seating. Natural wood accents like artisan-made bowls can also warm up a neutral kitchen.

Repaint 

Neutral doesn’t have to mean white or beige. For a soft contrast, introduce watery colors like sea glass. For more drama and sophistication, go for high contrast with deep blue, black or grey. Paint the island a different color from the rest of the kitchen, or paint the lower cabinets a different color from the top cabinets.

You can still have a neutral kitchen, but pops of color, texture and artistic touches may provide changes you’ll really love.  

How to Negotiate with Difficult Sellers

Before you submit an offer to buy a home, you don’t know how the seller is going to respond. Some sellers are challenging – they don’t want complications or compromises. They can demand all-cash offers, no inspections and for you to pay over list price. The only thing you can do is make it hard for the seller to be difficult.

Ask your Berkshire Hathaway HomeServices network professional to contact the seller's agent to find out what the seller wants as far as terms, if they’re open to doing any repairs and if other offers are on the table. The seller will appreciate knowing you’re trying to craft a reasonable offer.

Consider the seller’s feelings and don’t be critical of their home. Keep your intentions to remodel or tear the house down quiet. Low-balling a seller will only make them angry, so make your offer fair.  Include a copy of your lender’s pre-approval letter, along with a cover letter summarizing your strengths as a buyer and why you love this home. You can also include a copy of the comparable market analysis you used to illustrate how you arrived at the offer price.  

If you ask the seller to extend the closing date or accommodate another contingency, be prepared to make a concession, such as a higher offer price or waiver on repairs. The more your offer matches up with the seller's needs in terms of price, move-out dates and closing, the more likely your offer will be graciously accepted. 

The Real Mortgage Rate - Or is it?

Advertised rates look tempting, but don’t be fooled into thinking that’s the rate you’ll pay. You have to qualify to receive the best rates with excellent credit and work histories. According to  BankofAmerica.com, interest rates are the annual cost of a loan to the borrower expressed as a percentage. The annual percentage rate or APR, is the annual percentage plus other fees, including mortgage insurance, many closing costs, discount points and loan origination fees.  

The Federal Truth in Lending Act requires lenders to disclose the APR in advertising and in loan agreements. When you apply for a mortgage loan, the APR will be listed in the loan estimate your lender is required to give you. ConsumerFinance.gov recommends that you get estimates from other lenders for the same loan, so you can compare fees. Compare the loan estimates by looking at page one under loan terms. You’ll find the APR on page 3 under “Comparisons.”

APR comparisons are easiest to understand if you’re applying for a fixed-rate mortgage. For adjustable rate loans or ARMs, APR estimates are based on the initial fixed rate period of the loan. While ARMs have rate-hike ceilings, the APR is much higher when interest rates rise during adjustment periods.

Lenders can charge consumers high or low interest rates, and they have flexibility in which fees they include or exclude in the APR, so compare interest rates and APRs carefully. If you don’t understand the purpose of any fee, ask your lender to explain.