Aloha, Every morning I get up and drink my oolong tea from China while looking at a view that is beyond beautiful. It's georgeous even in the rain - the waterfalls off the Koolaus are spectacular!!
The current market on Oahu is falling, rising, slow, fast, stopped, and accelerating! As always with real estate, the market is local,local,local. And in Hawaii, especially on Oahu, each neighborhood and area within the broader neighborhood can be a separate "market". We are also unique in that we always have demand.
So prices are "falling" in Ewa Beach where there is a glut of inventory from all the people buying entry level homes at lesser prices (because you have to deal with the traffic) who thought they'd be able to sell and get equity out in three years and then the market returned to the normal 5 year pattern. Whereas prices are "rising" in nearby Ko' Olina with the upcoming resort construction in the area and further development of the second city of Kapolei.
Homes that are priced at market value in any neighborhood are taking longer to sell (but actually a normal amount of time - too many people got used to the rah-rah past five years) while if you are priced just under and have percieved immediate equity, your property can move very quickly.
Prices for the fixer uppers in Coconut Grove in Kailua are back to a more realistic $500-$600,000 while closer to the beach the $2 million to $25 million homes continue to sell at a regular pace. On Oahu, the constraints to the market are in the mid-range market (under 1 million) and are mainly due to the credit crunch. Many buyers who could qualify even a month ago no longer can. So now listors are insisting on pre-approval letters from lenders to be submitted with offers, not just vague pre-qualification letters.
So how's the market on Oahu? Great for buyers - it's your market now and sellers are offering concessions and willing to negotiate. For sellers, it's still a great time to sell and get that equity working for you - you still have five years of incredible value appreciation in your home.
First step in buying on Oahu is to become familiar with the neighborhood in which you want to live and the second is get pre-approved so you know what you have to work with. Check out Buyers-Hints here.
Here's my morning view:
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