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 … Read more
Mortgage rates could climb another 1.5 percentage points, according to a leading economist. National Association of Realtors chief economist Lawrence Yun predicted that interest rates could be on their way to 8.5 percent if they pass a threshold of 7 percent, according to Bloomberg. Yun based his forecast on key levels of resistance borrowing costs will … Read more
Many feel Oahu is so desirable that the median price of homes will not decrease. While I agree it is a great place to live, we have periods of falling prices. As shown in this chart, we have had some drops, one over a 10-year period. The question is whether the current mortgage rate increases … Read more
As the rates go up, keep in mind VA and FHA loans can be assumed by anyone. You do not have to be in the military. We have a listing that comes with a 2.75% assumable mortgage, and that rate saves a lot of money right now. All sellers should keep this in mind as … Read more
Sales are definitely cooling. 34.4% less than last September, and the average days on market has doubled for Single Family. Surprisingly, the median price is still up, but if the sales continue this slow down at some point, I expect the median price to drop too.
For comparison, in the 2008 crash, prices declined 27%. According to Moody’s, Oahu is up to 25% overvalued as mortgage rates go above 7%. Every day sellers ask me if now is the time to sell or should they wait. I say sell now because the market could be a lot lower going forward.
The Case Shiller Home Price Index MoM just had its biggest drop since 2012. Hopefully, it won’t drop like it did in 2008.