Are you skeptical about buying in today’s real estate market? If you are, it’s understandable. There is no doubt that rising mortgage rates are weighing heavily on everyone’s minds. And, on home sales. We’re definitely in a slower market. We’re seeing homes sit longer on the market and sales volume is definitely down. But, here’s the thing — Oahu median sales prices have not gone down. In fact, they went up compared to the same time last year. In September, the single-family median price was $1,100,000, up 4.8%. The condo median sales price was $502,500, a 5.1% increase from a year ago. So, even though the pace of sales is down, we haven’t seen a drop in the median sales price.
Will Prices Decline?
We have seen price adjustments in some neighborhoods. However, it is notable that the months supply of active Inventory for single-family homes is less than 2 months. And, only slightly higher for condos. So, even though higher interest rates have put the brakes on demand, there still isn’t much available inventory. From a strictly supply perspective, it’s still a Seller’s market.
So, what does it all mean and what should you do? It’s important to remember that all real estate is local and that the market varies from neighborhood to neighborhood. There are still housing opportunities and real estate is still a smart investment. You’ll want to consider many factors before you jump into the market. The biggest factor to consider is that housing is a long-term investment. Historically, properties on Oahu have appreciated well. Very well. In fact, single-family homes on Oahu have gone up over 500% since 1985!
Do you plan on staying in your new home for a while? You will likely do well on your investment over time. And, isn’t that the goal? Plus, you need a place to live and you’ll enjoy all the benefits and the stability that comes with home ownership.
Look At Your Options
Are high interest rates keeping you out of the market? Why not consider an adjustable rate mortgage? Or, a Seller buy-down. Check out this great blog on the seller buy down strategy.
If you want a home, explore all your options. Don’t let the news headlines and the naysayers deter you. Housing is historically a good investment and today’s market lacks the characteristics of a housing recession.
Every real estate market has its challenges. Today, the challenge is interest rates. But, now that things aren’t as heated, you’ll have more time to shop and more ability to negotiate favorable terms. With the right financing strategy, you can still buy a home and enjoy the benefits of homeownership. And, that’s good news!