Many people in Hawaii have real estate goals they are trying to reach in 2022. Some may want to be first time homeowners while others may want to either downsize or find a bigger home to meet their new needs. It’s important to formulate a plan in order to reach those goals and here’s some tips on how to reach them.
First Time Homeowners
If you’re renting here in Hawaii you may have already noticed or experienced the rental increases across the islands. These rents are expected to rise even more in 2022. Many landlords are either selling their properties or raising rent prices, which leave renters in a bind.
Home prices increased in 2021 on the island but fortunately the mortgage interest rates have stayed near historical lows. These low interest rates have given homebuyers much more purchasing power. If you’re interested in becoming a homeowner it’s important to first meet with a real estate agent and lender. The inventory of single family homes are still in short supply in Oahu so it’s important to find out how much you’re pre approved for and find a monthly budget you’re comfortable with before you even start the home search. You’ll also discuss how much cash you’ll need to bring for closing costs. An agent can then show you homes that meet your specific needs and stay within your price range.
The median price of single family homes in November was $1,050,000. Buying a condominium may be a better option for some first time home buyers. Many developers also offer affordable housing units for buyers with incomes up to 140% of the area median income. Ho’opili in Kapolei and Ulana in Ward Village are some areas with new construction that have reserved units for affordable housing. If you qualify, this may be a great option for you.
Record high prices for single family homes were reached in 2021 making it a seller’s market. If you want to buy a bigger or newer home you will want to see how much equity you have in your present home. Speaking to your real estate agent or lender can give you a good idea of how much you can purchase a new home for. Your agent can show you your home’s current market value in order to find the right price for selling your home.
Your real estate agent will also help you get your home ready before putting it on the market. Now’s the time to get rid of clutter and spruce up the yard. Your agent can also give you staging tips, marketing strategies and any updates needed for selling your home at the best price. It’s important to note that you should have a replacement property before selling your home though. Average days of single family homes on the market in November of 2021 was only 11 days. You don’t want to sell your home and find yourself without one!
There’s a lot of indecision when it comes to buying a home and procrastination can actually cost the homebuyer money in the end. No one has a crystal ball to look into the future but one thing we do know is that interest rates are at an all-time low and an increase in these rates could make homes even more expensive to purchase. If you’re ready to set real estate goals and want to take the first step, contact me, and I’d be happy to start the process with you. Wishing everyone a Happy New Year and much aloha in 2022!