Keeping it Real Estate: Recent Episodes
Ben
Interest rates went up quite a bit in just the last month, from 7.0 to 7.5%. This is slowing down the buyer activity but not really affecting prices because the inventory is still low. Most homeowners have a much lower interest rate and so they don't want to sell their property and deal with the higher interest rates of today's market. Most would be sellers are opting to use their property as a rental instead of selling it. There's not as many buyers out the shopping right now, but the smart ones are getting really good deals right now in terms of a lower purchase price and seller credits. They are opting for highly leveraged loans, ARMs, and getting lender credits back with negative points and making the interest rate even higher in hopes that it will go back down soon and then they can refinance into something more stable. It's much more easier to shop around now with the decreased competition than it is once the interest rates come back down.
As far as the sales stats go for last month, the median price for a single-family home was $1,050,000 down 4.5% and condominiums were $532,000 which is actually up 6%. The median days on market for both single-family homes and condominiums is about three weeks. Close sales are down 16.5% for single-family homes and down 24.2% for condos. New listings are down across-the-board and months. Supply of active inventory is up a bit at 2.7 for single-family homes and 3.0 for condominiums. It's still a strong sellers market as six months is the threshold for when it changes from a sellers market to a buyers market, something we haven't seen in Hawaii in the last 20 years. Are you interested in making a real estate move in the new future whether buying or selling property here in Hawaii? Let me know so I can help.
Hey it's Ben Fieman with your July 2023 Oahu real estate market update. Hope your summer is going well. The average 30 year fixed mortgage has an interest rate of about 7.14% right now. Current inflation is at about 2.97% so we are approaching the feds target of 2%. What is this doing to our market here on Oahu? Not a whole lot. Median single family homes are at $1,050,000 island wide and condos are at $510,000, both down just 4.5% vs last year. Days on market is up 7 days when compared to last year, but picking up speed when compared to this year’s winter and spring months. New listings are down 17.1% for single family homes and down 22% for condos, most homeowners are sitting on a lot of equity from the recent appreciation and have a low interest rate so they are not looking to get rid of their mortgage. Because of this closed sales are down 30.5% for single family homes and down 24.9% for condos. My prediction is we will remain relatively flat until inflation goes back down to about 2% then when interest rates get back to about 5-6% there will be a flurry of activity. Everyone’s real estate goals are different so please reach out regarding your particular situation so I can see how I can help. Thanks for tuning in and I’ll see you next month in August for your Oahu Real Estate Market Update!
June 2023 Oahu Real Estate Market Update: Hope your June is going well so far! I'm starting to notice multiple offers on listings again and it's starting to feel a little like 2022. But there are also a lot of escrow cancelations and the buyers in today's market seem very fickle in their decision making. Before when a buyer went into escrow it was like winning the lottery. Now it feels like they must be making a mistake and so they cancel at the slightest discomfort. ⠀
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For sellers it's important to find a buyer who you think will actually close instead of offering the highest amount in today's market. Inventory remains low because Hawaii homeowners are sitting on so much equity due to the recent appreciation in our market and most likely they have an interest rate at around 3% which they don't want to lose by selling. Buyers are starting to accept 6% as the new norm for interest rates and willing to stomach it for now and hope that it will go down in the future so they can refinance. ⠀
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When looking at last month's numbers it's much of the same story. Median price just down very slightly from last year, closed sales down by about a quarter, and days on market about doubled. Unless the interest rates go up further to 8%+, it looks like the worst of the market decline is already behind us. ⠀
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Each neighborhood and condominium is unique so I'd love to hear more about what is important to you so I can help offer real estate guidance backed with data. Enjoy the rest of your June!
Today's more than ever with the softer real estate market you can upgrade your home with ease. We spend most of our time at home and so it's important to our happiness to absolutely love every aspect of it. If there's something you wish you had different in your home such as an extra bedroom or bathroom, a home office, a swimming pool or jacuzzi, more land and privacy, a better view, or switching to a condo or single family home, then now is the time to do it!
Ask us about our Sell, Stay, Buy program where we will sell your current home for top dollar, find a buyer who is willing to let you stay in your home for 60 days after closing with the proceeds in your bank account, and then buy a new dream home with lots of time to shop around for the right property so you only have to move once.
Timing of the market doesn't matter when you are doing a Sell/Buy so make that move today! Life is too short to not absolutely love where you live. Contact us today and we can make the process as easy as possible while keeping as much money in your pocket after it's all done.
If you are renting and don't own property yet, don't try to time the market. As soon as you have the financial ability to make a purchase, buy something even if it's not your dream home. If you are getting an amazing deal on your rent maybe buy an investment property instead of something for you to live in. Eventually that property will increase in value so it's important to get started as soon as possible. Your first purchase will most likely turn into your first investment property at some point. If you are using cash only instead of a loan, flipping a property, or just trying to get in and out of the market then you might want to try and time the market a little more and make your purchase when it's more of a buyer market. The hard part is when times are difficult it's usually difficult for a reason and adds a layer of difficulty for you to make that purchase.
When selling a property, the spring and summer months tend to have more buyers because more life changes are occurring. People are getting new jobs, kids are getting into new schools, and travel is picking up more. Therefore there are usually more buyers shopping in the spring and summer. In the winter months from Thanksgiving to New Years not many buyers are looking to move during the holiday season.
Everyone's situation is different so lets meet at my office so I can learn more about your specific situation and what's most important to you.
What is Compass Concierge? We will front the costs of repairs, renovations, and anything else related to the sale of your home in order for you to make your home more presentable and achieve a much higher sales price! You can choose any of your own materials, vendors, or contractors and not have to pay anything out of pocket. You will receive a debit card and checkbook and whatever you spend gets reimbursed dollar for dollar with no added interest or fees either at the close of escrow when the property is sold or 1 years time, whichever comes first.
Every dollar spent with Compass Concierge to make your property more desirable for buyers will about 3x your sale price. Contact me today to learn more about this amazing program to help your friends and family get their property sold for the highest possible price!
April 2023 Oahu Real Estate Market Update: Much of the same has been happening in the Oahu real estate market. Single family homes are down slightly and condominiums are up. This is possibly due to the fact that some buyers are paying for condominiums in cash but single family homes are still out of reach for cash buyers and thus more affected by the higher interest rates. Closed sales are down and days on market are up across the board showing not as much buyer activity when compared to last year. Interest rates are hovering at about 6.5% when it was half that amount a year ago. Every neighborhood and condominium on Oahu is different so if you have any particular questions or want to talk real estate more specific to you, just reach out to me and I'd be happy to offer my guidance.
Do you like your home but not love your home? Do you wish it had an extra bedroom or bathroom, it was closer to family or work, or was a littler nicer and newer? Life is too short to not absolutely love where you live. So here’s a video on how to do a sell/buy so you only have to move once!There are 2 options. 1) Put your home on the market but make it contingent upon finding a replacement property. 2) Sell with a 60 day rent back so you can have the proceeds and have time to shop around for your new home.
This is much better than selling, renting for a while, and then buying again which will make you have to move twice instead of once. Whenever you do a sell/buy, the timing of the market doesn’t matter because while you might have an easier time on one side either selling or buying, the other side might be the opposite. It can be hassle free so don’t delay. Make that move and live in the home of your dreams!
The main story from last months numbers is Single Family Homes are taking nearly 4 times longer to sell, and Condos are taking 2 times longer to sell compared to 2022. Average days on market for a Single Family Home is 47 days now compared to 13 days just a year ago. The median days on market for Condos doubled to 28 days compared to 14 days last year. The median Single Family Home price is down -12.3% versus last year but that’s still only about half the amount of appreciation during 2021-2022. Condos are only down slightly at -3.4% which I believe is due to the fact that Condos aren’t as dependent on interest rates as Single Family Homes because a lot of the time they are purchased with cash. With Silicon Valley Bank going down we think the Feds will stop raising rates for now and could even lower them slightly in the short term. If that happens there could be increased sales activity. It’s important to keep an eye on interest rates week to week or even day to day to see if there drops that could help you get a low mortgage and a really good price on a home. If you have any questions about the market or your specific real estate goals please reach out and I’d be happy to offer my guidance. Thanks for tuning in and see you on next month’s Oahu Real Estate Market Update!
For the first time in a long time Oahu median home prices actually came down, 7% for single family homes and 3% for condominiums. There's no need to panic because it's nowhere near the amount of appreciation our market experienced in the last 2 years, but it is worth noting as buyers have more opportunities in today's market than in years past. More expensive financing is putting some downward pressure on prices and sellers will have to adjust in order to meet new decreased buyer demand from increased interest rates. Average days on market are now 24 days and so while there are still fewer new homes coming on the market, inventory is starting to grow because properties are taking longer to sell. My buyers who are winning are the ones offering 10-15% below asking and still going into escrow with seller credits. My sellers who are getting their properties sold are the ones who are being patient in finding a buyer, making it move in ready, and pricing according to the higher interest rates. Here's the change that many buyers asked for so lets see who makes a move. Like I always say, it's more important to find the right property and a motivated seller than it is to try and time the market. There are opportunities out there!
What home improvements to focus on before putting your property on the market? Focus on fresh paint and new flooring. If you still have a budget left over after those 2 items, then focus on upgrading the kitchen and bathrooms. That way you can maximize the sales price for your property.
There's a lot of lowball offers being offered on properties especially in today's market. So what should you do as a seller if you receive one? You never know how much higher a buyer is willing to come up unless you send them a counter offer. I have had buyer's lowball in the beginning and then come up close to asking. It's important to not get emotional and keep the conversation going. You never know, they might be the right buyer for your property!
Prices are staying about the same at $1,049,500 for SFH and $502,500 for condos, closed sales are way down about 40% showing a lot less sales activity, and days on market are much longer at 25 days for SFH and 21 days for condos. Interest rates have settled to about 5-6%, buyers are coming back after the holidays, and properties are not flying off the shelves like they did during the pandemic but it's much more normalized. Each neighborhood and building have their own unique characteristics so be sure to reach out for specific information. Enjoy!
In the previous market you could price your home at almost any price and it would sell. In today's shifting marketing, you have to pay more attention to pricing. The sweet spot is at about 98% of what the comparable sales say it should sell for. Your goal is to find a least 2 interested buyers who become emotionally motivated to purchase the property and bid the price up to offer above market value. That way you can maximize the sales price of your home.
Just because stocks go down does it mean the real estate market has to go down? And how strong is the correlation between the interest rates and buyer competition? In this show we partner up with friends from different industries to see how the market is in the different fields we work in and our predictions for 2023. We have Marissa Ka @rissamei from Veterans Mortgage Source talking about the mortgage industry, Kyle Shimoda @adventuresofalinea of Inpac Wealth Solutions discussing the finance industry, and myself @benfieman of Compass Hawaii giving updates on the real estate market here in Hawaii. Would love to hear any insights and questions you might have yourself and hopefully you can navigate through 2023 with success and opportunities. Enjoy!
We have seen the fastest interest rate increase in history but they have seemed to settle at about 5-6% for now, versus 2.5-3% 9 months ago. Even though every 1% increase is 10% less buying power and affordability has gone down, there’s no need to panic. Interest Rates in the United States averaged 5.42% from 1971 until 2022, reaching an all time high of 20% in March of 1980 and a record low of 0.25% in December of 2008. Therefore we are back at our average.
There are ways to lower your interest rate even in today’s market. 1) Ask for credits from the seller to pay down points. 2) Opt for an ARM instead of a 30 year fixed mortgage. 3) Use cash to pay down principal so you end up paying less interest to the bank.
It’s much better to get a good deal now below asking, with seller credits, and lower the interest rate in the future or pay it off.
Median single family home prices on Oahu went up 9.5% vs November of last year! While some keep waiting for a potential crash the market moves further and further away. Condos did go down by 4% to $480,000 with perhaps more inventory choices there. Instead of waiting for interest rates to come back down, why not buy now with the decreased buyer competition, get a good deal, and then refinance later when interest rates go back down? No crash or drop in prices will be significant enough compared to the amount of appreciation we have experienced in our market in the last 2 years. Interest rates actually dipped back down a bit and most of my buyers are looking at 5-6% instead of 6-7% just a month ago.
If you have been thinking about making a move in this market whether buying or selling property, reach out to me today for a FREE consultation and I’ll be able to walk you through your options.
Been having this debate a lot lately: When flipping a home should you renovate all out or just do lipstick and get it back on the market as soon as possible? I recently had 2 investor clients flipping properties at the same time. One of them went all the way renovating everything top to bottom and using high end finishes. The other just changed out the main things like flooring, new paint, and new appliances, but left some things for a new buyer, such as old cabinets and AC. The fully renovated home sold right away for full asking and the partially renovated home sat on the market for a while and sold for less.
Even though inventory is still relatively low, buyers are very spoiled right now. They don’t want to do any of their own renovations and want move in ready. So my advice when flipping properties? Go all out and make it so the buyer only needs to bring their clothes and toothbrush!
What’s your vote?
1) Usually 20% is due up front and the remaining 80% is due when complete. It usually takes about 3 years to build a condo in Hawaii. 2) Usually you have to pay the conveyance tax on new projects from the developers and again as a seller when you resell. 3) Having an agent represent you on the purchase doesn’t cost you a thing and it’s a good idea to have an extra set of eyes so you can pick the right unit and make sure everything goes smoothly.
There are always new projects going up in Honolulu so if you are looking for an investment property or a place to live in the future, reach out to get in the front of the line with the best possible pricing.
There’s a lot of amazing great agents out here in Hawaii so if you have an agent who you like and trust they will save you a lot of time in your search. If you are still looking for an agent, one thing we provide is the ability to get you the best deal possible. Our strength is in our negotiations so it’s important to try and save as much money as possible so vou can feel at ease knowing you are getting the best deal possible. Contact us today for a free consultation 🏡 🔑 ☎️
When selling, if the property has been sitting on the market for a while, take it off and re-list it the very next day to reset the days on market. When buying, it's important to look at the cumulative days on market to understand the true activity of the property.
Condo maintenance fees on Oahu hover at about $1/sqft. But it's important to know what utilities that includes in order to figure out if it's high or low. Also, condos with more amenities and services can expect higher maintenance fees to maintain those added benefits. Older condos might also have higher maintenance fees to make upgrades and make sure everything is working properly. Condo pricing is lower but you have mandatory maintenance fees. Just because you have a single family home doesn't mean you don't have monthly maintenance as well. It's important to keep these things in mind when deciding which kind of property you want to live in. http://ow.ly/l5zV50LGnL0
Step 1: find a good realtor. Don’t try to do it on your own. Real estate changes so much and there’s so many tips and tricks that come with experience in every market so you don’t want to make a mistake or not get the best deal possible.
November 2022 Oahu Real Estate Market Update! The number of sales is way down. Why? Because buyers aren’t willing to offer as much because of the rising interest rates, and sellers aren’t willing to come down because they are used to getting way above asking and have good comps behind them. Therefore, days on market are way up because it takes a lot longer for buyers and sellers to come down/up and meet in the middle. However, pricing hasn’t come down in Hawaii (yet)! I do think the Feds will raise interest a few more times because inflation is still rampant and Hawaii could go down in price slightly, but I don’t think there will be a major crash because Hawaii is so sheltered and we have a diversified buyer pool. My buyers have been taking advantage of the decreased competition and getting properties in escrow below asking, below appraisal value, and with seller credits. They are also lowering their interest rate and monthly payments by using those seller credits to pay points and buy down the interest rates, and on top of that opting for 7 year ARMs which offer about a 1.5% decrease in the interest rate. My sellers are pricing their properties correctly at the latest comparable sale and still getting top dollar for their property, the ones that have been pricing over have been sitting and needing price reductions. Everyone’s situation is different so reach out and we can help you achieve your specific real estate goal. Stay tuned for next month’s Oahu real estate market update!
I've been hearing this a lot lately, "I'm waiting for the crash!" Why do people automatically assume there's going to be a crash? I'm not saying prices aren't going to go down but home prices went up 25% in one year, do we really think it's going to go back down by anywhere near the same amount? It's important to look at the facts when trying to determine what's going to happen to the real estate market. 1) Because of the recent appreciation of the market, American's are sitting on a lot of equity in their homes. 2) Inventory remains very low. 3) Building costs remain very high as supply chain and material costs were disrupted during the pandemic. Rising interest rates have definitely cooled off the market but there's no data to support a major crash on the horizon. In fact I think this is one of the best times to buy a home because my clients are getting them for under asking, under appraised value, and with credits since there's less competition. Once interest rates settle and the Feds stop raising them competition will return. Just because there’s a recession it doesn’t automatically mean home prices will fall. When buying real estate, the focus should be the next 5-10 years, not the next 5-10 months! Contact me directly so I can assess your particular situation.
Do you know the 12 regions that make up Oahu?
Hawaii Kai, Metro Honolulu, Diamond Head, Central, Waipahu, Ewa, Leeward, Makakilo, North Shore, Kailua, Kaneohe
Yes the market has slowed down quite a bit but what crash are you waiting for and where would it come from? Experts forecast a 2% appreciation for the US in 2023. If the market goes down do you think it will go down by anywhere as much as it went up? The real estate market is like a yo-yo on an escalator, there’s micro up and downs but it’s more important to look at the macro big picture of long term appreciation. Waiting can and has been a costly mistake.
Want to know the secret in getting a good deal in today’s real estate market? Look for properties that have been sitting on the market, vacant, and have price reduced. Those are the ones no one looked at because they priced too high in the beginning, but you know are motivated to sell because they already price reduced and aren’t earning any income or using it for themselves. When everyone else only looks at the new properties as they come on the market, use the opposite strategy to find the best deals!
In the shifting real estate market we find ourselves in today, if you live in Hawaii and are renting, now might be the best time to take that leap and become a homeowner. I can assure you, it is possible. It starts with a belief, and then actionable plans to pursue it into reality. Reach out to a loan officer to have a budget in mind, and then contact your realtor to see what properties you can achieve with that budget. You might have to take a step back, cut out some expenses, and make some sacrifices. But in the end, I promise it’ll all be worth it.
Introducing Ālia, a new condo project by the Kobayashi Group coming to the heart of Kaka’ako. 483 beautiful units, mostly market with a few reserved. Location, views, and amenities can’t be beat. This developer has had many home runs such as Hokua, Capitol Place, One Ala Moana, and most recently Park Lane. Sales will launch very soon by the end of the year, construction anticipated to start in 2023, with a projected completion in 2026. We really believe in this project so if you are interested in learning more, contact us today!
Sometimes in life you have to take 1 step back in order to move 2 steps forward. This is especially true with real estate in Hawaii. Your first property probably won’t be your dream home, but if you can make it work and start building equity it will open up so many more opportunities in the future!
Want to sell your home but don’t know where to go? Ask us about our sell, stay, buy program! We sell your home with friendly terms including a free 60 day rent back so you can have the proceeds in your bank account and take your time on finding a new home that works better for you, all while only having to move once! We make it simple for you, because that’s the way it should be.
Interest rates have gone up, competition has gone down. It’s easier to get a better deal on the market now. If you’re buying for yourself, getting a loan, and planning to stay in the home for a while, there’s no need to delay. Buy now, start building equity, and the market will eventually improve.
It’s impossible to time the market and when there is a crash, there’s factors that make it very scary to move forward. If you’re buying for yourself, planning to hold onto the property for a while, and getting a mortgage, there’s no reason to time the market. Prices and interest rates work hand in hand so you’ll likely end up in the same spot in terms of your monthly payment. It’s more important to find the right property and a motivated seller that’s easy to work with.
Yesterday the Fed just raised interest rates by 0.75% making it more expensive to borrow money. I purchased a home last December which I thought was the height of the market and in hindsight I got an amazing deal and an interest rate under 3%! The beauty about real estate is you can’t make a mistake. Even if you buy at the worst possible time that just means you might have to wait a little while before it goes back up again, but at least you have a tangible asset to use in the meantime. Right now sellers are scared and buyer competition is way down. So don’t delay, make your move now!
September 2022 Oahu real estate market update: I like to use the analogy of how the pandemic affected the Oahu real estate market to flying down the H-1 freeway at 80 mph. Every property was flying off the shelves with multiple offers. Now the Oahu real estate market is going the speed limit of 55 mph. It's more normalized, buyers are not having to waive every contingency, and less transactions are taking place. Condos went down slightly in price, something we haven’t see in a long time. Low inventory is stabilizing the market although it is growing. Stay tuned for more updates and message or comment with your email address to be subscribed to my monthly market update emails to get more valuable information.
There’s a lot of great agents out there with different benefits but I truly believe my agent super power is the ability to get my clients the best deal possible. @juliechuhawaii and I just helped a military couple go into escrow on a property that fell out so we were able to go in and offer a much lower price. The appraisal just came back $20,000 higher than our purchase price which is super rare in this market. We also got a small credit back from inspections to help with closing costs. They are purchasing with a VA loan so they don’t have to put any money down. We were able to help them switch from renting to owning for almost the same amount monthly but now they will get to live in a much nicer home and fix it up the way they want to. What’s more important than trying to time the market is finding the right property and a motivated seller. And you can only find out how motivated that seller is if you have a proactive agent fighting for every dollar for you.
We all go through ups and downs, but the one thing you can control is your reaction and the story you tell yourself about what happened. That’s where I find self improvement so helpful. You update the software on your iPhone so why not update your brain? I recommend PSI Seminars, Landmark, and reading Think and Grow Rich. Those 3 have made the biggest impact on my life.
The Oahu single family home market went up about 25% and condos went up about 15% in just 1 year. Do you think the Oahu real estate market will go down by that much in 1 year? Investors and those playing with cash might want to time the market a little, but for those getting a mortgage and buying a home for themselves to live in should not time the market. Earliest is always the best. It is much more important to find a motivated seller than it is to try and time the market!
Had a great time on @uncut_hawaii with @kolbymoser and @_andrewtran 🎙🎥
When should you buy a home? Granted this video was filmed a few months ago but still holds true today even in a shifting market! 🏡
There’s a lot of great agents out there. But if there’s one thing that I would say is my agent superpower is the ability to negotiate and get my clients the best deal possible.
Prices still higher from last year but inching lower from previous months. Closed sales are down 22.8% for Homes & Condos so that means sales activity is way down. Days on market are starting to inch longer. For my listings I’ve been offering seller credits to buyers which has been helping to put them in escrow and get it sold. It allows the buyer to buy down the interest rate and/or help with closing costs. Buyers in this market can get creative by going with ARMs instead of 30-year fixed loans and get seller credits to buy down the rate. It’s much easier to buy now because you don’t have to give up as much in your offer and you can run a normal escrow with all of your due diligence. I think buyer activity should pick back up again once the interest rates stabilize. Would love to hear your comments below!
July 2022 Oahu Real Estate Market Update: The OLD market was bonkers, you had to give up your left kidney in your offers just to get a home. In the New market we live in today, instead of calling it a “cooling off” I’m going to call it more of a “normalizing” of the market. Instead of speeding down the H-1 at 85 mph with a 2.8% interest rate, we are now going the 55 mph speed limit of a 5.5% interest rate. It’s a more historically “normal” interest rate and once buyers realize that they will be back. But until then, right now might be the best time to buy a property in the last 5 years because there’s much more room for NEGOTIATIONS and not only can you get in at a lower price, you can also ask the seller for more help while in escrow.
What I’m noticing, buyer activity slowing down because of the rise in interest rates but prices remain high due to low inventory and motivated buyers still looking to buy a home.
As a valued client, you’re invited to participate in my exclusive online real estate seminar, in partnership with the Ward Village Properties team. I’ll share my deep understanding of the Honolulu real estate market and help you identify current and future opportunities that are right for your needs.
Wednesday, June 24 4:00pm, HST
Live seminar on ZOOM
KEY TAKEAWAYS:
• History of the O'ahu Real Estate Market
• How Ben can help you compete in today's market
• Effects of Covid-19 on O'ahu residential real estate