Spring is special in Hawaii – and in real estate
Ah Spring – my favorite time of the year!
Whether it’s the refreshing breeze or drier conditions that are inspiring me to get out and be more active, there is something special about this season that gives me great joy.
There is an old saying that you plan your whole year from Spring and that certainly seems to apply to life and also to real estate. It’s been my experience that this is the time of year when real estate becomes more top of mind and generates more interest and activity, particularly among luxury properties.
Besides improved weather, there are other reasons why people seem to be more interested in selling their home or buying or investing in one. The hectic Christmas/New Year’s Holidays are a distant memory and people are also able to put tax season to rest in mid-April and focus on the year ahead.
Additionally, more tourists begin visiting our islands in the Spring. While this usual flow was disrupted during the pandemic, tourism is on the rebound and this not only benefits our local economy during their stay but also the real estate market as many take the opportunity to visit properties.
I’ve noticed an increase in inquiries from Japan, China, Taiwan, Australia, New Zealand, Canada and Europe. While visitors can contact any agent on the Island, many are becoming aware that in addition to my expertise, I am also fluent in Mandarin and Taiwanese. I have become savvy in using technology such as FaceTime, WeChat, WhatsApp and Line app to have an initial conversation about the market before arrival.
The reality is that many people want a slice of paradise that Hawaii has to offer and I am honored to help arrange that.
Inventory remains tight
One of the enduring factors that have added to the resilience of the Oahu real estate market is inventory which remains low as noted in this recent Locations Hawaii Market Report. While some buyers are remaining on the sideline in the hope of seeing interest rates drop, others continue to jump right in to purchase their first home or a property to enjoy for retirement or for investment purposes.
An added reason that the Hawaii real estate market remains attractive to homeowners and investors compared to other U.S. states is the low property tax rate.
As a result, I’ve observed multiple offers on several properties recently and some of this activity is also being fueled by people who are facing high rental rates that were highlighted in this USA Today article. The high cost of renting is just one more reason that it’s often better to own than to rent.
Besides providing the freedom of owning your property, there is also the potential for capital appreciation. As captured in this report, the median sales price of single-family homes and condos have both appreciated nicely over the past decade (from $624,908 in 2012 to $1,123,495 in 2022 for single-family homes – $316,021 to $507,208 for condos over the same period).
As there is no guarantee of capital appreciation, one of my goals in working with any prospective buyer or investor is to try to help them spend within their means. I enjoy crunching the numbers to ensure a purchase fits a budget and financial plan – all while aiming to make the process as informative, stress-free and enjoyable as possible. After all, it is one of the biggest decisions you will make in your life.
Spring forward and enjoy life!
With Spring in full swing, now is a great time to embrace nature and reconnect with family and friends. It can also be a moment to consider new opportunities such as a change in scenery.
If this includes exploring Hawaii as your new home or as an investment, I would be honored to assist you. Until then, I hope you are enjoying Spring wherever you are and have the opportunity in the future to enjoy the Aloha Spirit that all of our Islands offer.
