O'ahu Market Update - The Shift is On!

The market has shifted and continues to change. Prices are up, sales are down and there are more homes for sale. When the market shifts, buyers and sellers also shift. Buyers ask, “Should I buy now?” Sellers ask, “Can I still get my price?”

Buyers now have the gift of choice and time. There are more homes to choose from and most times they no longer have to drop everything to see a home that has just hit the market and can ponder their options for a few days or even weeks. No matter if prices are going down, interest rates are going up or the economy is slowing, buying a home is a vehicle in any market to design a lifestyle and build long-term wealth through equity. 

Sellers typically sell because of a life change, whether it be a new job, new state or right-sizing to something bigger or smaller. Therefore, achieving their price is very important. In any market, the presentation of the property, marketing and negotiation of the price allow the seller to get the highest possible price the market will bear. As the market shifts, the quality of those services has been more important in the past few years. 

During a shift between stages of the market, it is vital that a buyer or seller have a consultation with a professional Realtor to determine if buying or selling now is right for them. 

 

Inside the Numbers:

Median Sales Price:

       Homes - $1,107,944 (11.6% increase)

       Condo/townhomes - $500,000 (5.3% increase)

Unit Sales:

       Homes - 312 (-22.8% decrease)

       Condo/townhomes - 518 (-22.8% decrease)

Inventory for Homes for Sale:

        Homes - 576 (9.3% increase)

         Condo/townhomes - 1,050 (8.4% increase)

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

A Quick, Easy Decluttering Guide

With more stuff than you probably need or want, decluttering before a move can seem overwhelming, but you don’t want to pay movers to move or store items you don’t use, love or want. Here are some tips to make it quicker and easier:  

Start Small

Label moving boxes for selling, donating or throwing away. List items you want to sell online, or take them to a consignment store. When the donation box is full, take it to the Salvation Army or non-profit of your choice. Throw away broken items you’ll never repair and stained clothing you’ll never wear.

Pick a Schedule

How many days till you move? Devote an hour a day, a day to a room, or a weekend per floor – whatever your schedule permits. The goal is to make moving day faster and easier.

Pack as You Go

As you declutter, move items that you want to keep but don’t need right away like out-of-season clothes or holiday dishes into moving boxes. Tape them closed and label what’s inside and what room it should be moved to in your next home. Store the boxes out of the way, in the garage, basement, or a storage facility.

Let Go

You may be holding onto things you don’t want because you feel guilty. What you paid for the item or who gave it to you as a gift doesn’t matter. Let the feeling of obligation go.

Decluttering has its benefits. You’ll be better organized and feel far less stress.

About Institutional Homebuyers

One reason there’s a shortage of available homes to buy across the U.S. is that corporate investors are snapping up single-family homes to use as rentals or to flip back onto the market after making improvements. Institutional homebuyers (companies, corporations, LLCs) have always been around but a new report by the National Association of REALTORS (NAR) found their market share rose 84% in 2021. Based on deed records, institutional homebuyers accounted for 15% of residential purchases in 2021.

The record low interest rates of 2020 and 2021 and rising inflation – 8.5% in March 2022 – are ideal incentives for institutional homebuyers to turn to residential real estate for asset acquisition as a hedge against inflation. They buy properties to turn into rentals where rents can be raised annually. Investors look for dense populations with fast growth, fast rent growth and home appreciation, fast home sales volume, and low vacancy rates. NAR also found they look for areas with higher incomes and education, more young people and minorities, and a high density of renters.

In those areas where institutional investors are more than 30% of market share, the number of household formations grew 11%, average rents increased more than 30%, home prices rose 40% or more, and home sales rose 70%, all over the last decade.

The top five states with the largest market share of institutional homebuyers were:

• Texas (28%),
• Georgia (19%)
• Oklahoma(18%)
• Alabama (18%)
• Mississippi (17%)

Closely followed by:

• Florida (16%)
• Missouri (16%)
• North Carolina (16%)
• Ohio (16%)
• Utah (16%)

47-682 Hui Kelu Street #6709

I am happy to announce that this lovely unit JUST SOLD TODAY! I helped my client purchase this property about 9 years ago. She was new to the island. She came for a " long weekend shopping trip" prior to moving here. She was being relocated to Oahu (through the military). It was a whirlwind shopping extravaganza! I took her around the island, and she loved the Windward side, so we narrowed down our search to Kailua and Kaneohe. She absolutely fell in love with the Koolau mountains, and found her dream home in Temple Valley. We were up against several offers back then, and were able to land this lovely property. She thoroughly enjoyed her home, and decided it was time to sell. We walked through the unit, and I suggested several things in preparation prior to selling. Some minor fixes were made, a full interior coat of fresh paint done, along with staging and having the property professionally photographed. The hard work certainly paid off. CONGRATS SUZANNE! We have come full circle. Let's do another transaction soon!