While the political scene in 2016 has been anything but consistent, the Hawaii real estate scene has been resoundingly solid. Everyone and their mother knows that prices have been going up, up and up.
While world events like the tragedies in Nice, Istanbul and elsewhere, along with the shocking presumed exit of Great Britain from the European Union, threaten to destabilize global markets, trade agreements and real estate valuations, Hawaii appears to remain on its upward trajectory.
In fact, with the ‘Brexit’ on the horizon, American has positioned itself as a safe place to effectively park one’s capital. It’s assumed that this will help keep mortgage prices low, countering an assumed rate hike pegged for later this year. Consequently, lower rates should further strengthen the market for Hawaii real estate buyers.
That’s great news for home sellers, and the data support the excitement. According to the Honolulu Board of Realtors’ June 2016 report, the median single family home price skyrocketed 60k from June 2015 to an all-time record high of $760,000.
That’s MEDIAN, folks, which means half of all sales were above that price. Let that sink in for a minute. Half of all the single family home sales on Oahu in June 2016 were above $760,000.
Condos went up from $338,500 to $405,500, an even greater increase of $67,000!
It’s understandable if some potential home buyers question whether this actually does represent a good time to buy. First time buyers could feel that if they don’t buy now, they will forever be priced out of the market and, therefore, the dream of home ownership (at least in Hawaii).It’s hard to argue
It’s hard to argue with that point. After all, how many people out there, especially first time buyers, could picture themselves affording a modest 3-bed 2-bath home for $800,000 or more given the natural order of things next year?
The “now or never” mindset isn’t comforting, however a continued period of depressed mortgage rates might ease the tension and make today’s properties more attractive. After all, there are some great ones to be had. Here are a few exmaples: