The real estate market in 2022 started off with high competition amongst buyers. By the end of the year, sales began to slow, and inventory grew as interest rates climbed. I’ve attached a video with more details of the year-over-year sales comparison for the month of December as well as a brief overview of the total year.
Over the last 40 years in the State of Hawai’i, we have seen that the average year-over-year appreciation in home value has been around +3.5%. That’s not to say that every year has reflected an increase; in fact, there were years in the last 40 when we saw double-digit drops in appreciation.
Think About the Big Picture
When you stay focused on the big picture and on long-term goals of building wealth for your future, homebuying is worth heavy consideration. Many people cut themselves short before they even explore the facts of their capabilities. They might assume they don’t make enough money, or that their credit is too bad to qualify them for a home loan.
As interest rates climb back to a more normal rate (the average interest rate over the last 20 years is 7.86%) and the inventory increases, I am seeing more opportunities to negotiate with Sellers on behalf of my Buyer clients.
What Are Your Goals?
Maybe purchasing a home isn’t realistic for you in 2023, maybe you won’t be ready even in 2024 and that’s okay. You still should shoot me a text now and allow me to collaborate with you. Let’s construct a custom plan on how we will make your homeownership goals come to life.