How’s the Current Market?
People are constantly asking about the market. Lately, the general mindset is that it is slowing. There is more inventory. Longer days on market. More price adjustments. But, in July, the median price jumped to $835,000, passing all previous records. Year-over-year sales volume on Oahu rose by over twelve percent. And, last week, I received three offers in one day on a listing. A listing that had been sitting on the market. A long time.
Interest Rates are Low
So, where is this new surge coming from? I can only speak from firsthand experience. And, this is what I know. Interest rates are incredible. A lender just quoted a jumbo loan at below 3%! There is a direct correlation between interest rates and buyer demand, especially in Hawaii where prices are high. Even a small percentage drop in the rate makes a difference. Now, just because I received three offers in one day, doesn’t mean we are experiencing a surge. Still, I do think there is renewed interest and activity. In fact, I spoke with three agents last week, all of whom were in a multiple offer state. Interesting.
If You Like Something, Act Quickly
Also interesting is that fact that one of the buyers who lost out on my listing had been fence-sitting. And here’s the point of this story: don’t assume that a “contracting” market means you can wait. If you see something you like, take action. It’s heartbreaking to see wonderful buyers lose out simply because they didn’t move quick enough. They lost a good property. And, if rates creep up, they’ll lose purchasing power.
Will Rogers said, “Real estate is the best investment in the world because it is the only thing they’re not making anymore.” I agree with Will, especially when it comes to Hawaii real estate at today’s interest rates.