Timing Isn’t Everything
Timing Isn’t Everything
By Logan Freitas, Realtor with Century 21 iProperties Hawaii.
As a Real Estate Professional, the question I get asked most often is “When is a good time to buy?”. The answer is simple but also intimidating… “when you can afford it.” For local families, affordability in Hawaii is quite the oxymoron. But my mission is not to complain of what could be, my mission is to find a way. With recession talk on the rise, “timing the market” is ringing once again. The cost to own in Hawaii is high, but is the cost of waiting higher? Let’s discuss.
Did anyone else think the RE market would crash at the start of the pandemic? Me and my colleagues sure did! This was a strong hypothesis - loss of jobs, stimulus checks, rising costs of goods, etc. All valid reasons for buyers to wait. Then, against my prediction, the 2021 market took off like a rocket, with approximately 60% of homes selling for over the asking price - some hundreds of thousands over. While that was frustrating for buyers, the silver lining was that interest rates were historically low. Once again, many buyers decided to wait in hopes the prices would come down. Fast forward to the present day, and those people were right - there has been a cooling of the market and prices are coming down. Problem is, with interest rates going up, the cost of waiting continues to pile up.
According to historical data provided by the Honolulu Board of Realtors, since 1985 there have been two years in which Hawaii median sales price decreased by more than 5%. In that period, there have been nine such years where the median sales price increased by over 10% (2021 increased a whopping 19.3%).
Let’s not sugarcoat it - the current market is rough! High interest rates are really affecting purchasing power. Inventory is still low as potential sellers are holding off from listing. So, is there any good news? Always. Fewer buyers means fewer bidding wars. The chance of getting good homes at asking price, or even a little below, is a real possibility that we haven’t seen in a few years. Creativity can win the day - work with a professional team who willget creative with things like financing strategy and “rate buy-downs”. I truly believe there is a time for everyone to succeed in this market. Will prices come down? Maybe. Will rates go up? Maybe. We cannot control what will happen - only the market can do that. And the market waits for no one.
Logan Freitas is a Realtor with Century 21 iProperties Hawaii. He is state certified and specializes in Buying, Selling and Development. His passion is to help Locals afford Hawaii. Contact him at email@example.com, 808.284.5585 or ig: @keepinghawaiihome.
The Chamber sees the ability for OHA to develop itʻs land in Kakaʻako Makai as just and fair. Look across the street at the many residential and commercial developments that exist and are being planned only 200 feet mauka of OHA’s lands. Why is it that all of these projects are allowed, but when it comes to Kanaka creating a space where our culture, our presence, and our economic wellbeing is front and center among others capitalizing on our people and culture that it’s a problem? Kanaka and Kanaka-owned businesses have the right to re-exert ourselves in an area our people thrived in for generations.
There is a total of 221 acres of land in Kakaʻako Makai. OHA owns 30 acres, only 14% of that. The City & County owns 47 acres designated for parks and the entire shoreline in Kakaʻako Makai – all public lands. The Hakuone Master Plan is built around a Hawaiian Cultural Center where cultural practices, education, the arts, and entrepreneurship are the focal point for the community. Hakuone returns a community stronghold in urban Honolulu to Kanaka.
OHA has a strong Board, highly capable organizational leadership, and committed staff. They have a great master plan for Hakuone and broad support in the State Senate. OHA needs that same kind of support in the State House. The NHCC will be supporting OHA in the 2023 legislative session and urges everyone to support this project by calling your elected officials at all levels, giving testimonies in support, either in person or in writing, and sharing information on the progress of the project with friends, family and coworkers. OHA has started announcing virtual, public, town hall meetings and we encourage everyone to participate. OHA wants to update you on the latest with Hakuone and hear your manaʻo. Information on upcoming meetings can be found at www.hakuone.com or on social media @HakuoneHI.
The mission of the Native Hawaiian Chamber of Commerce is to mālama Native Hawaiians in business and commerce through leadership, relationships and connections to economic resources and opportunities. Learn more at www.nativehawaiianchamberofcommerce.org.