Hope all is well with you all! In this content, I would like to cover the Hawaii real estate trend we have seen this past month and why the change happened.
Real estate provides home, roof over your head. One of the most critical and essential elements for most of us. With more people are ordered to stay at home, or work from home, more people are in need of a place that serve them in a customized manner.
(Oahu Town houses)
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Some of the increased demands that we have witnessed in our daily operations are:
- A place that provides the space to be able to divide actual living space from study/work place
- A place that provides the space to exercise/relax
- A place that provides the space to grow own food resources(vegetable, fruits)
- A place that provides the space for new member of families (Pets included!)
- A place that provides (your own needs!)
Whatever it might be, something that we didn't think about before became very important in our life (aka "New Normal"!)
The recent surge in purchase is definitely the single family home purchase vs condominium/apartments/townhouses.
O‘ahu’s Housing Market Sees Mixed Activity Amid Ongoing Pandemic
Single-family home market marks new record and steady recovery, while condos continue to trail 2019 activity
HONOLULU – According to resales figures released today by the Honolulu Board of REALTORS®, O‘ahu’s single-family home market continues to make a steady recovery, while condo activity struggles to regain momentum as the pandemic stretches on. Most notably, sales of single-family homes in August marked a new record-high median sales price of $839,000, climbing from $790,000 this time last year and representing a year-over-year increase of 6.2%.
Using data collected from its computerized Multiple Listing Service (MLS) system, the Board reported the following statistics:
(Reference: Honolulu Board of Realtors)
A lot of times, the maintenance fee for condominium/apartments is one of the key factors that drives the demand for single family homes.
Simply put, affordability goes up with single family home:
(Reference: Mortgage Calculator from Google)
Monthly cost: $1,706 + $600 (Potential Maintenance Fee)= $2,306
(Reference: Mortgage Calculator from Google)
Monthly Cost: $2,306
*With the same Monthly Cost of $2,306, you can afford up to
$513,600 for a Single Family Home VS $380,000 for a condominium unit with maintenance fee.
*Disclaimer: This sample calculations are NOT including Tax/Insurance (Escrow fee, actual monthly costs would vary with different credit, maintenance fee, insurance, and tax)
You can sort of see how effective your money can be used and build your equity faster with a single family homes.
I often use the google calculator to see how much monthly cost would be (The ball park of the estimate) when I am requested to schedule viewing of homes/condos, so when my clients see and like the place, he/she would already know how much they are expected to pay monthly.
For the people who have been pre-qualified with a loan officer, that loan officer can calculate the estimate of cost that can be more close to actual cost also.
If you are anything like me, I would like to know how much I would like to pay monthly rather than how much I can borrow. If you are renter and considering the purchase in the near future, pre-qualification process should come now to find out how much you can afford, and how much YOU want to spend. Even if you are qualified to spend $2,000 a month toward housing, you may want to limit spending up to $1,800, and put the extra $200 for rainy day funds or saving for other purposes.
I often refer to this website: iwasbrokenowiamnot.com (Yes! Very self-explanatory website!) for further budgeting/saving tips in addition to all the helpful resources from Hawaii home ownership center.
ATTENTION HOME OWNERS!!
***If you own a home and in need of assistance to sell/exchange/develop, contact us for our free counseling session and possible route you can take. ***As always, our mission prevails! We have more than 40 years of local expertise to get you where you need to be!
"Our mission is to be the most knowledgeable & caring real estate company that provides unsurpassed service & value to the community."
Also, check out Hawaii Home Ownership Center for useful info!
https://www.hihomeownership.org/news
Please continue to stay safe, and wash and moisturize your hands often!
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Hitomi Ozawa Simmons
([RA] RE Lic# RS-74864)
1585 Kapiolani Blvd, Suite 1533
Fax:
808.988.8077Email:
hitomi808ozawa@gmail.com / hitomi@ipropertieshawaii.com
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