Buyers are back baby! Homebuyers have had the upper hand while the housing market softens here in Hawaii, but the market is starting to heat up for the spring time. Reports show that median price for single-family homes has fallen under one million dollars for the first time since August of 2021. Amid high inflation, people have been fearful of buying a new home. Now, however, buyers are starting to catch on to the negotiation power they hold with less competition in the market.
Hawaii’s Real Estate Market is Unique
Hawai’i is experiencing a dichotomous market at this time. Some areas on Oahu, such as Hawaii Kai, have lower inventory and higher demand. With that, realtors are seeing buyers having bidding wars, and listings having less days on market. Other areas, such as Ewa Beach, have been seeing higher inventory and lower demand, leading to longer days on market and sellers willing to adjust the listing price or offer buyers credits to get the home sold. With that, buyers have more leverage to get the price reductions and seller credits they want. However, a lot of people move in and out of Hawaii annually and this negotiating power may not last long.
It is important to understand there is no “perfect” time to buy a house. Don’t wait until the market crashes or interest rates fall. Don’t expect prices in Hawaii to ever fall dramatically. Hawaii’s market is unique because it’s always a hot commodity. There is limited land, and because of that the homes here continue to appreciate in value year after year. Inflation is still in the driver’s seat, and buyers are understanding that interest rates are not going to plummet any time soon. So why wait?! Don’t miss your chance to buy now while prices are softening because of uncertainty. Remember, you can always refinance your mortgage once interest rates go back down, date the rate and marry the home! If you’d like to know more about what you can afford and the home buying process, contact me below!