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.
Congratulations to all homeowners on Oahu!
The Case Shiller Home Price Index MoM just had its biggest drop since 2012. Hopefully, it won’t drop like it did in 2008.
Hawaii News Now asked me to get some custom statistics for their 10 pm top story about the latest Fed rate hike.
I was able to pull together some interesting stats that show a huge drop in the sold over asking by month and a huge increase by month in sellers dropping their price.
I posted the screen clips, and you can view the full video at https://www.hawaiinewsnow.com/2022/09/22/latest-fed-rate-hike-may-also-increase-jitters-hawaiis-real-estate-market/
This article in Hawaii Business Magazine about prices dropping uses some quotes and stats I provided.
The share of homes listed for 30 days or longer increased 12.5 percent in July compared to a year earlier, with 61.2 percent of homes now sitting on the market for a month or longer, according to a report released Tuesday by Redfin.
The annual increase in stale listings is the biggest since April 2020, when the housing market temporarily ground to a halt at the onset of the coronavirus pandemic. It’s also one of the largest year-over-year decreases since Redfin started tracking the data point in 2012, according to the report.
We are definitely feeling the 23% drop in sales in both Single Family and Condos. It is not as easy for sellers now.
This is an interesting chart that shows even the COVID downturn was not too bad, and right after that, the market increased dramatically. You can see we have not had any serious downturns since the 2008 crash.
The days of bidding on homes with 20 other buyers are coming to an end.
Redfin said under 50% of their offers now have no competing offers, the lowest rate in 2 years.
They also stated that homes that would have had 20 showings two months ago are now getting one or even no showings.
Buyers are also canceling more frequently than any time on record other than the first 2 months of the pandemic.
“The rapid rise in interest rates is causing buyers to change tack and reevaluate their budgets and what they’re looking for in a home,” said Chad Takesue, president of the Honolulu Board of REALTORS®. “New listings are spending more time on the market compared to the frenzy in activity we witnessed last year. Sellers are also adjusting their strategies in response to market conditions. Over the past several months, we’re seeing more sellers decrease the asking price for their properties for single-family homes and condos,” Takesue added.