Isn’t that the burning question? That and…“Have we hit the bottom?” No one, and I mean no living person, has THE crystal ball that can predict the future, but we can track the cycles of the Oahu luxury real estate market with some idea of what comes next.
One thing we know is that when the higher priced homes start to sell, it is a sign that the pocket books are loosening and the rest of the market will soon follow. We also know that interest rates fluctuate and they are the lowest they have ever been. There are 2 things that we look at financially when considering buying Hawaii real estate:
- Interest rates
These two considerations are linked almost every time. Either can drive costs up or down depending on their position. If the interest rate is high and the price is low, the cost can still be higher, causing payments to be higher. If prices are high and interest rates are low, the same thing can happen. We are in a unique position to have both interest rates and prices being low. Should I buy? Absolutely!
Now is the time to buy Oahu luxury real estate—without a doubt. It always amazes me how the masses tend to do the opposite of what should be done. When everyone is clamoring for real estate and prices are skyrocketing, more and more people rush to the Hawaii real estate market.
Conversely, now as interest rates are at their rock bottom and prices are back to pre-bubble prices, on the sidelines, buyers wait for the rise. The smart money is going after deals now, while prices are low and interest rates are low. Real estate runs in a cycle, and believe me, this too shall pass and prices will increase again. Once prices start a steady increase, it will cost more to buy.
Although qualifying for a loan is more difficult, it is definitely possible for many people looking at buying a Hawaii home. Loan limits are rising for luxury Oahu real estate and there are still low down loans for qualified individuals and qualified neighborhoods. A good job, good credit, low debt, and a solid financial history will go a long way to helping own a piece of Hawaii real estate.
The answer to the question, “Should I buy now or wait?” is…If you can buy now, you would be in the company of some very wise investors. As expected, the luxury market on Oahu has been picking up steam this year and every week we see multi-million dollar condos and estates going under contract and closing quickly, so the answer is, “Yes, buy now!”
For more information on the best real estate deals Oahu has to offer, call or email me.
Kelly A. Lee, (R)