Hot Honolulu Summer Market!
April 28th, 2009 categories: For Sellers, Homes For Sale, The Market
After selling real estate for 26 years, 17 years in Honolulu, I have noticed that there are natural cycles in the market. They go something like this. From the beginning of January to early March, the market picks up. As tax season approaches the market slows, then beginning in May lots of property sells through the mid-August. The market then slows as parents and kids get back into the groove of school. The market can be slow through the end of October Then there is usually a small bump from November through mid-December. This surge is generally a result of 2 types of buyers. The first is a buyer that needs to buy and close by the end of the calendar year. The second is the person who will be transferring to Oahu in the New Year. Like the whales coming to Hawaii in the winter, the cycle repeats itself!
We are on the cusp of what I believe will be a strong summer market! Here are 5 reasons why.
1. The upheaval in financial markets since the end of August 2008 pushed many good buyers to the sideline. These buyers still want to buy, but they needed to see stability on Wall Street. In other words, there is pent up demand that will be released the summer.
2. Insanely low interest rates. Depending on the day a buyer chooses to lock their interest rate, a buyer with a 20% down payment can expect an interest rate of 4.5% or less. These low interest rates provide additional buying power and incentive to buy now.
3. Good buys. Home values are down, which means a buyer can take their increased buying power and get more home (larger, nicer, better location, etc.) than they could as compared to any time in the last 4 plus years.
4. Moves associated with students entering private school. A significant portion of Honolulu’s school age children attend private schools and as families find out which school their son or daughter will be going to in the fall, they will move to closer to that school.
5. A loss of confidence in the stock market. Historically, over the long term, Honolulu real estate has done very well. Given the magnitude of losses in the stock market, I am sensing that many people are viewing real estate (specifically properties in Honolulu) as excellent a long-term investments. Honolulu’s lack of open land to add new inventory means that there is an imbalance between the lack of supply and the high demand for houses and condos in core Honolulu. This puts pressure on long-range values.
If you have a home you are considering selling, I believe now is the best time to get it ready and on the market for sale. If you are a buyer, get your finances in order (pre-approved by a lender) and meet with your real estate broker (preferably me!) to be sure they know what you are looking for. Good properties will be coming up for sale and buyers better be ready to jump on them, or a good buy may be missed.
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If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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