O'ahu Market Update
The Market Takes a Big Step Towards a Buyer’s Market in 2023

According to the Honolulu Board of REALTORS® Monthly Statistical Report for data through February 2023, demand continues to slow, prices are coming down, the number of properties for sale have increased and it takes twice as long to sell a home. Buyers interpret this to mean they are competing with less buyers, they have more choice, homes are more affordable, buyers have more time to make a decision and now sellers are willing to negotiate their price down. Does that mean it is a buyer’s market? Not so fast. There are still less than 700 homes for sale on an island of more than 1 million people and the median sales price of $987,000 for homes and $480,000 for condos is still 9.5% higher and 6.6% higher than 2 years ago. Furthermore, the remaining inventory of homes is just 2 months. That means if nothing new comes on the market for sale, at the current rate of sales, everything would be sold in 60 days. While the market has softened significantly and it is moving towards a buyer’s market, we aren’t there just yet. It is more of a neutral market.

As this market normalizes, agent advice includes spending more time preparing a property before launching it on to the market, so that it can sparkle to attract buyers and prepare both a strategic marketing and negotiation plan.

Buyers can now take the time to brainstorm with their agent on a more comprehensive wish list, as well as, a negotiation style to ensure buyers buy the right house for them at a good price.

Keep in mind that every neighborhood is different. Email, text or call me to find out if your neighborhood is consistent with the overall island and my analysis above.

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

How to Avoid Buyer's Remorse

A recent survey of homebuyers who purchased a home in 2021 and 2022 found that 72% had buyer’s remorse. Thirty-one percent paid over the asking price, a median of $65,000; 36% made offers without seeing the home; and 43% made concessions to sellers, such as waiving a home inspection.

If you’re planning to buy a home in 2023, how can you avoid buyer’s remorse syndrome?

Get prepared. Research neighborhoods and types of homes so you can find a home you’ll be happy with for years to come. You’ll need earnest money, a down payment, moving costs, utility deposits, unexpected repairs and replacements and more. Talk to your lender and get pre-approved for a loan, so you’ll know the ceiling of what you can comfortably afford. Be clear about your needs and dealbreakers, so your Berkshire Hathaway HomeServices Hawai'i Realty agent can help you search for the right property.

Buy within your means. While you peruse homes online, shop within your budget. It does no good to look at homes you can’t afford or that aren’t the best fit for your household. If you need to consider fixer-uppers, make sure your mortgage loan can cover the necessary improvements. Be aware of all the costs, including taxes, HOA fees, mortgage insurance, moving, etc.  

Ask for seller concessions. Sellers in many markets are lowering their prices, agreeing to fix or replace expensive appliances or operating systems, paying the buyer’s closing costs, and other concessions. All you need to do is ask.

Sellers: Don't Be Surprised by Repairs

Repairs or replacements that the homebuyer requires to be completed before closing on the sale of your home can blindside you if you’re not prepared. While any unforeseen expenses are an unwelcome surprise, you’ll still have to fix the problems or risk letting your buyer out of the contract and having to disclose the problems to future homebuyers.

Homebuyers have the right to have the home they’re buying professionally inspected. The purpose of the inspection is to inform the buyer as to the condition, age and likely lifespan of major systems and appliances in the home. As a contingency in the contract, the buyer has the choice to proceed with the contract or ask the seller for repairs or replacements. This is fair because many issues with a home can’t be seen with the naked eye. An inspection gives a rough idea of future expenditures; if there are more problems than the buyer is willing to allow, the transaction will be in jeopardy. The buyer can’t help but wonder what other problems may come to light about the home.

Your Berkshire Hathaway HomeServices network professional knows that the less the buyer finds wrong, the smoother the transaction will be. Before you put your home on the market, hire a licensed home inspector to alert you to unknown problems and repair or replace them so the buyer has no misgivings. You’ll also be able to ask a higher price for your home when it’s in pristine condition.