So you’re ready to buy a home or condo in Hawaii? One of the primary reasons you may be thinking along those lines aside from the nearly perfect climate, is the aloha spirit that exists here. But sometimes certain things can cause one to temporarily lose that special quality and get caught up in the process of common needs and wants in life. Home buying happens to be one of them.
Here is the straight scoop on buying real estate right now. I don’t think it matters if you are looking here in Hawaii or any other desirable market on the mainland. Our environment for buying is currently not for the faint of heart — extremely competitive and somewhat reminiscent of 2006-2008. Do not confuse this with what happened during that time period and all its less than perfect lending practices. In my opinion, this time the race for the place is entirely different.
To set the stage, let’s look at the players. Our buyers are a combination of well-qualified, financed folks and an increased population of wealthy individuals who are cash-ready. The pandemic has undoubtedly caused a reset for how our world works now and probably going forward. Working remotely from home has become the norm for many people and also an opportunity to pull up stakes from anywhere USA to live the dream.
High Demand, Low Inventory
This high demand for homes and our current low inventory scenario has caused somewhat of a panic in the market. Over the past year we have seen a rapid rise in home pricing that could make your head spin. Multiple offers, above the ask, and cash vs. financing scenarios are all in full swing. Appraisers are having to keep up with values based on recent sold comps as they climb. Ok, ok .. You get the picture.
Ready to Buy?
Still ready to buy? You bet you are! The fact is, real estate pricing has a proven history of a steady upward trend but I will leave the bar graphs and pie charts to the statisticians. In spite of what some might call chaotic conditions, whether you are looking to buy as a pre-qualified buyer or with cash in hand, I believe you should put your best foot forward and start the hunt.
Be Ready to Make Decisions
Choose an agent with lightning speed response in communication. One who understands our market conditions and knows how to navigate them. Some creativity may be needed to strengthen offers and those offers must be delivered in a professional and timely fashion. It’s teamwork, so you as the buyer, need to play your part as well. Be there… ready to make hard decisions. Reply back to your agent with the same urgency they give you. Understand this is not an easy task and at the same time have patience, understanding, and oh yes… let’s do it all with Aloha! In the end, you should be able to reap the rewards of this fast-paced market we are in and secure your place in paradise.
Sellers, we need you! If you have been on the fence about selling your home — now is the time.
Want to Know More?
I would be honored to speak with you about the best way to approach our market buying or selling here on the Big Island. Put my real estate experience to work for you. Please stay tuned to my blog and follow me on Instagram, Twitter, or Facebook. The links are at the top and bottom of this page.