What was the state of Oahu real estate in 2012? Here is a quick review.
The chart below shows how Oahu’s real estate market performed in 2012 compared to the previous year.
Unbelievably, the number of sales increased even as prices went up. Our low inventory and historically low interest rates are a big contributor to this unusual equation. There are fewer homes available in the market (both number of new listings and active listings were down). Look at the number of pending sales, up 57% for single family homes (SFH) and up 43% for Condos. Buyers are wiping out the available inventory, even at the higher prices. This is not a new trend, our market is continuing to improve in sales and price…just at much quicker pace.
Smart home buyers aren’t standing still. They are taking action now.
Smart home sellers should also take advantage of today’s high-demand market with less competition and much more interested buyers.
If this trend continues, 2013 will be a fantastic year for Hawaii real estate.
Are you considering buying or selling? I’d love to give you a complementary consultation to discuss your specific needs.
This article in the July 14th issue of The Wall Street Journal reminded me of what makes smart people successful. My business allows me to see what happens when people are indecisive when it comes to money. This isn’t a case of the rich getting richer, it’s about how people making the most of what they have.
In my opinion, what makes people smart is the ability study their options and quickly make decisions and taking advantage of their opportunities. From my experience, most people who jump on the opportunities end up making the right choice. People who over-analyze and delay making decisions usually miss out on valuable opportunities and end up wasting time, money and sometime trusting relationships (because they also waste other people’s time).
What makes opportunities valuable is the fact that they don’t come around often. Once you miss them, they’re gone.
Would you be surprised if I told you that Ewa Beach had the most residential home sales in the last month (June, 2012) compared with the rest of Oahu? Some people still seem to be stuck with the old market impression for Ewa, which is slow, dragging and gloomy. Well that’s not the case. I have personally experienced Ewa’s market and it’s very different from last year. Ewa is now a very fast and competitive market! This PBN article covers a good snap shot of what’s going on the entire island. Check it out.
I had a chat with a very successful business person who is now retired and enjoying his life (and is enjoying spending his money). He said that everyone understands the concept of “buying low and selling high.” But what a lot of people end up doing is they buy real estate because they fear prices will rise beyond their price range, then they sell when prices begin to drop and they fear that the prices will continue drop lower. In the end, they’re buying high and selling low.
Don’t play the guessing game. Contact a realtor that you trust to give you the most up-to-date information and make an educated decision.
There’s more positive news and predictions about the housing recovery. Housing price predictions are getting stronger as they (the experts) are confident about what will happen next. According to Real Estate Magazine, these experts are already throwing out a number of the percentage price increase and what the timeline will be. How do they know this? Wow.
I can only rely on facts, or actual data after it already happened, as I don’t have a crystal ball. According to the Honolulu Board of Realtors, the latest stats on Oahu’s real estate market have already shown a 11% jump in the single family home median price in comparison to the same month (May) of last year. Wow! Condominium sales has risen by 12% in the same period. Wow!
I’m hoping these facts are revealing trends that’s really happening and help guide our decisions in the near future.
The real estate market on the mainland may be seeing the light at the end of tunnel, but here on Oahu, the market is already out of tunnel and bathing under the sun.
The newest stats from the Honolulu Board of Realtors has confirmed that housing prices on Oahu are on the rise. If you recall the upside-down bell curve graph from high school math class, our home prices were already at the very bottom of the curve, and starting to move upward.
Lots of buyers who were on the fence waiting for Oahu’s housing prices to hit rock bottom are starting to realize that they just missed it–and they starting to jumping in.
Why is this happening?
1. There is not enough inventory. There simply aren’t a lot of houses on sale.
Buying a new home can be a stressful time in your life, especially when finding the perfect home that fits your budget seems next to impossible. If you’re like most first time home buyers, you probably think you need to purchase a condominium because houses here are too expensive.
Well there’s a very charming single family house in Honolulu that’s available at a condo price. It’s not a CPR so there are no condo maintenance fees. In addition, the entire house has been recently renovated and includes a new kitchen and bathroom. All kitchen appliances and washer are brand new. And there’s also yard space for gardening.
If you’re interested in learning more about this little gem near downtown Honolulu, please contact me.
Back in 2006, people were lining up to purchase units at the Moana Vista condominium project. As the economy took a turn for the worse, people started backing out for fear that interest rates will climb before the project can be completed.
Today, the building stands half-finished as construction has been stalled since December. The developer is stuck without cash and reducing prices, but people are waiting for completion. And now, to make matters worse, the the contractor is suing the developer for $30 million.
Check out the KITV story here. Stay tuned for more on this development.
Examining a nest of bees that moved into a foreclosed home
Interesting story on Nightline the other night about a realtor who is brutally honest when warning potential buyers about houses on the market, including his own listings.
“I don’t know if this is a flophouse, brothel, retirement home, prison, fraternity…” he announced on a recent visit to a bank-owned property in northern San Diego County, his home turf.
And this was a property he was trying to sell.
I’m not sure how focusing on the negative aspects of a property makes a person more “honest.” Perhaps because he appears to have nothing to hide? But isn’t that what disclosure statements are for?
I think when you represent the seller, you need to focus on the positive aspects of the property and properly disclose the negative. Even if it’s a foreclosed property, you’re still selling it, you’re not giving it away.
Check out the Nightline story here and let me know what you think.