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 will cause another drop in the Oahu median price.
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 it makes your property a lot more attractive.
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.
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/
“The 30-year fixed mortgage rate hit the six percent mark for the first time since 2008 – rising to 6.01 percent – which is essentially double what it was a year ago,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said in a news release.
Wow, $30 million that did not have to be paid in Real Estate taxes. If you don’t have the home exemption, file it before 9/30.
