November 2022 Oahu Real Estate Market Update!
November 2022 Oahu Real Estate Market Update! The number of sales is way down. Why? Because buyers aren’t willing to offer as much because of the rising interest rates, and sellers aren’t willing to come down because they are used to getting way above asking and have good comps behind them. Therefore, days on market are way up because it takes a lot longer for buyers and sellers to come down/up and meet in the middle. However, pricing hasn’t come down in Hawaii (yet)! I do think the Feds will raise interest a few more times because inflation is still rampant and Hawaii could go down in price slightly, but I don’t think there will be a major crash because Hawaii is so sheltered and we have a diversified buyer pool. My buyers have been taking advantage of the decreased competition and getting properties in escrow below asking, below appraisal value, and with seller credits. They are also lowering their interest rate and monthly payments by using those seller credits to pay points and buy down the interest rates, and on top of that opting for 7 year ARMs which offer about a 1.5% decrease in the interest rate. My sellers are pricing their properties correctly at the latest comparable sale and still getting top dollar for their property, the ones that have been pricing over have been sitting and needing price reductions. Everyone’s situation is different so reach out and we can help you achieve your specific real estate goal. Stay tuned for next month’s Oahu real estate market update!