As the end of the year approaches, I have had many questions about the real estate market here on the Big Island. Many are curious about what is in store for the Big Island real estate market and want to know how it affects sellers and buyers.
Is the island seeing a 20% decrease in prices? Are there still buyers? Is there an increase in homes for sale? What about foreclosures? Is there a lot of negotiation happening, and is it working? These are just some of the questions I’ve been recently asked and wanted to address.
Advice for Big Island Sellers
Sellers, you have had a great two years. You have seen a tremendous increase in the value of your homes, with many people waiving contingencies and bidding way over the asking price.
That time has passed. We’ve come to a more normal real estate market here on the Big Island where buyers want to do their due diligence, have the home inspection and termite inspection, and take a moment to ensure it’s the home for them.
Negotiations are happening daily and having a home in pristine condition makes a significant difference to your net. You may still see multiple offers if your Big Island home is in almost perfect shape, has been staged nicely, is priced within market value, and has professional photos in the listing.
If your home needs major renovations, has lots of repairs for the buyer to do and has poor photographs to go with your listing, you will see a lot of negotiating and ultimately receive lower than the asking price. This is the time to have that pre-home inspection and fix those items before going on the market.
Advice for Buyers
Buyers have had a hard past two years. Some have had to make multiple offers and sometimes bid 10+ times on homes. It’s been tiring and challenging.
There are more opportunities for buyers today, and I have seen an influx of buyers to the market because of the chance to negotiate and get a better deal.
Multiple offers are still happening! But with the market changing. It’s not easy to explain the real estate market here on the Big Island because it depends on the home, the condo, the location, how updated the home is, and of course, the view. This is where your real estate agent’s advice on their local market is essential.
But if the home is renovated and in fabulous shape, with a great view, and is priced correctly, you might expect to compete with other offers. However, it’s likely to be only a few, unlike the 11 offers I experienced in January 2022.
Prices and Inventory
Contrary to what you may have heard, prices have not decreased by 20% for homes or condos in excellent condition. * Please note I specialize in Waikoloa Village, Waikoloa Beach Resort, and Mauna Lani Resort, and referring to this real estate market area * Some prices have increased on the Big Island because we have a meager number of homes and condos for sale.
I am still seeing the great migration of people looking to move from their original homes or to buy second homes, which helps prop up prices and tightens the number of homes and condos on the market.
If the home or condo needs repairs or a lot of work, I have seen a lot of negotiation that ends in price decreases—some huge, some minimal—dependent on the owner and their motivation.
Big Island sellers are still in a good position if their homes are in great shape, but it is now becoming more of a balanced market. All parties should still be prepared to experience multiple offers when buying or selling a Big Island home, although it is less likely than in the past couple of years. If you want to purchase or sell, give me a call, and we can review your exact situation and see what we might expect from the market.
With the warmest aloha,
Leeana
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