“I’m waiting for the market to reach bottom before I buy!”
I hear that a lot these days. People are out there looking. They are finding homes they like that are priced much lower than they were 2 years ago, but some are hesitating because they aren’t sure that the “market has hit bottom yet.”
Waiting for the market to hit bottom may be a good strategy for “all cash” buyers assuming of course, that what they like is still available. But for most of us that will be getting a mortgage, waiting for the market to reach bottom while interest rates begin rising could mean you get less of a property for the same monthly payment.
Consider that a change in 0.2 points will increase a $100,000 loan amount by an additional $100 per month, so over a 30 year period, that additional 0.2 point will increase the amount you have paid by $36,000.
Poipu luxury home with unobstructed ocean views
Today’s prices on Kauai are at a low. The inventory still has great properties, but the better ones aren’t staying on the market long. As the inventory begins to deplete, buyers will be looking at a picked over inventory, and may not be finding the property of their dreams.
Anini estate home
Have we hit bottom?—It’s hard to tell. Do we have great deals?—Absolutely yes! Are interest rates still low?—Sure are. Are interest rates predicted to begin rising?—That’s what the lenders are telling us.
Time to buy? There may be no better time than now. If you have ever dreamed of owning something on Kauai, we are here to help you find that perfect fit!
North shore estate
Call me at (808) 651-5676, I am here to help you find exactly what you are looking for.
Lucy Adams, R(S)
lucyadams@hawaiilife.com
Gary Siracusa
January 11, 2011
It surely is a buyers’ market and savvy purchasers are acquiring properties. The only time one truly knows that the bottom has been reached is in looking back after it’s started back up – not a great strategy if you’ve found what you want for a god price.
Gary Siracusa
January 11, 2011
It surely is a buyers’ market and savvy purchasers are acquiring properties. The only time one truly knows that the bottom has been reached is in looking back after it’s started back up – not a great strategy if you’ve found what you want for a god price.
Lucy
January 12, 2011
Yes Gary, we are still in a buyers market and there are some beautiful homes available. But nice properties are moving quickly and while prices remain bargains, they won’t be the same values once the interest rates start to climb–so it’s a perfect time to consider buying now.
Lucy
January 12, 2011
Yes Gary, we are still in a buyers market and there are some beautiful homes available. But nice properties are moving quickly and while prices remain bargains, they won’t be the same values once the interest rates start to climb–so it’s a perfect time to consider buying now.
brad griffin
February 5, 2011
For realtors, its always a good time to buy. I doubt if we have hit bottom yet as there is such high unemployment in the US. Realitically, way over the officiaal rate. Those who are working are hanging onto there money. Tourism for Hawaii is still in the dumps and that is with a decent economy in Japan. There has to be work for people to pay there bills and reacquire a sense of optimism. What is being seen is a retrenching of priorities and second homes are a luxury.
brad
brad griffin
February 5, 2011
For realtors, its always a good time to buy. I doubt if we have hit bottom yet as there is such high unemployment in the US. Realitically, way over the officiaal rate. Those who are working are hanging onto there money. Tourism for Hawaii is still in the dumps and that is with a decent economy in Japan. There has to be work for people to pay there bills and reacquire a sense of optimism. What is being seen is a retrenching of priorities and second homes are a luxury.
brad
Lucy
February 7, 2011
Brad, I agree, of course, none of us know whether or not we have hit the bottom of the market, but here on Kauai, we are seeing savvy buyers understand that whether or not prices are at the very bottom, there are still great real estate values to be had.
Yes, today buyers are much more cautious and are doing their homework before making the decision to invest in real estate. Buyers that are looking for a quick return on their investments are not the ones buying Kauai properties. It is the buyer that understands the market will take time to rebound, but are willing to make the purchase because they have made a decision to invest in a property that these lower prices.
What we do know, is that we are seeing prices often 50% of what some of these properties sold for just a few years ago and that interest rates are lower than ever. We also hear that Lenders are predicting interest rates will start edging up which will add to the cost of any real estate purchase once this happens..
Who knows what tomorrow holds? We only know that Kauai is a beautiful place to live and for some, they are investing in properties here.
Thank you for sharing your thoughts and comments on the state of the US economy (which of course includes those of us here in Hawaii). We are all hopeful that unemployment will decrease and things will begin to level off for so many families all over the US that have been affected by the downturn in the economy. I sincerely appreciate the time you took to add your comments. Lucy
Lucy
February 7, 2011
Brad, I agree, of course, none of us know whether or not we have hit the bottom of the market, but here on Kauai, we are seeing savvy buyers understand that whether or not prices are at the very bottom, there are still great real estate values to be had.
Yes, today buyers are much more cautious and are doing their homework before making the decision to invest in real estate. Buyers that are looking for a quick return on their investments are not the ones buying Kauai properties. It is the buyer that understands the market will take time to rebound, but are willing to make the purchase because they have made a decision to invest in a property that these lower prices.
What we do know, is that we are seeing prices often 50% of what some of these properties sold for just a few years ago and that interest rates are lower than ever. We also hear that Lenders are predicting interest rates will start edging up which will add to the cost of any real estate purchase once this happens..
Who knows what tomorrow holds? We only know that Kauai is a beautiful place to live and for some, they are investing in properties here.
Thank you for sharing your thoughts and comments on the state of the US economy (which of course includes those of us here in Hawaii). We are all hopeful that unemployment will decrease and things will begin to level off for so many families all over the US that have been affected by the downturn in the economy. I sincerely appreciate the time you took to add your comments. Lucy
Lucy Adams, RS
June 13, 2011
If you have ever thought about buying property in Hawaii, there are some very good prices in condos and homes. It never hurts to look and see what it out there, and who knows that perfect place may come up for you!
Lucy Adams, RS
June 13, 2011
If you have ever thought about buying property in Hawaii, there are some very good prices in condos and homes. It never hurts to look and see what it out there, and who knows that perfect place may come up for you!