The National Association of Realtors said sales have crashed to the lowest level ever per Realtor.
It looks like close to 1/2 million Realtors will be looking for a new line of work in 2023.
I am noticing the slowdown already too much more than the 2008 housing crash.
As pending home sales have dropped lower than the 2008 housing crash, it is an excellent time to revisit what happened in 2008, as it seems we are going there again.
In June 2007, the median Single Family Home price on Oahu was $685,000. It went down and did not recover to $685,000 until December 2013, so it took about 6.5 years to fully recover.
Some Realtors say it is Hawaii, and home prices will always increase. That is true if you wait long enough. If you bought at the median price in August 1990, you had to wait until August 2003 for the price to go up, so 13 years.
So what do I recommend?
If you live in your home and don’t have to sell, you don’t need to do anything. Just keep enjoying your home.
If you have to sell now, please don’t worry. You are selling for less but can also buy for less in your new location.
If you are currently renting, you might want to start following the Real Estate market as the prices are dropping and decide when the right time for you is to buy.
If possible, I do not recommend renting long-term. Prices will go up again, and having a home during the up times is a great way to accumulate equity.
Even larger than during the COVID lockdown.
Much larger than during the 2008 housing crash.
It is amazing the price increase since COVID vs. a more normal price increase in the period before COVID.
Even if prices drop 20%, the price appreciation is still way over normal.
The percentage of sales for first-time buyers is at the lowest level they have ever seen, according to the National Association of Realtors.
High home prices combined with high mortgage rates are making it very difficult for first-time buyers, so it is not surprising they are being held back from making a purchase.
Investors seem to think so based on the 1-year stock declines for the biggest Real Estate public companies.
Approximately 23% of homes in the MLS have an assumable mortgage, but less than 1% of the homes for sale are marked that way.
This means most sellers do not realize their loan is assumable.
VA, FHA, and USDA loans are assumable by anyone, not just the military.
22% of all sales this year were VA loans, and 1% of sales were FHA or USDA loans.
So approximately 23% of all sales this year and most likely in previous years have an assumable mortgage.
On OahuRE.com, you can see the type of financing used when a home was sold by either mousing over the sold price in the comparison view as shown in the image or viewing the sold price on the property detail page using a mobile phone or desktop.
If you see VA, FHA, or USDA, you then know the loan can be assumed and can discuss that option with the seller, who probably was not aware of it.
As many of those assumable loans would be in the 2% to 4% interest rate range, it is a very attractive option right now to assume that loan.
