In November, the Honolulu Real Estate market felt the favorable influen ces of the low interest rates, low prices and first time home buyer tax credits.
249 single family homes sold vs 170 last year. POSITIVE INDICATOR
407 condos sold vs 201 last year.
POSITIVE INDICATOR
The median sales price for single family homes was lower than last year at $590,000 vs $594,500. POSITIVE INDICATOR
For condos, the median sales price was slightly higher than last year at $320,000 vs $316,200. STABLE INDICATOR
Sales have been brisk with days on market for single family homes from listing to escrow dropping to 42 days vs 57 last year. POSITIVE INDICATOR
Condo sales have been especially brisk with days on market at 32, less than half as much as last year at 68. EXTREMELY POSITIVE INDICATOR
The popular prices for single family homes has been anything between $200,000 to $300,000 and $400,000 to $700,000. For condos, those priced between $200,000 and $250,000 and $300,000 to $500,000 have had the most activity. PRICE INDICATOR FOR DEMAND
As a result, 5 of 17 single family neighborhoods and 9 of 19 condo neighborhoods are in stage 2 of the real estate cycle for November. ( Unit sales are above prior year and the median sales price is also above prior year) EXTREMELY POSITIVE INDICATOR
If your're interested in purchasing a new home or investment property, now is the ideal time with the current market conditions of low interest rates, low prices and tax credits for first time home buyers as well as home seller's looking to purchase.
In November, the median sales price was .8% below prior year while the year to date median sales price is 7% below prior year. This would indicate that prices are firming up vs prices earlier in the year.
The same holds true for condos. In November, the median sales price was 1.2% above prior year. The year to date price is 6.8% below prior year. This indicates condo prices are already moving up vs prior year.
Conditions are such that we're nearing the bottom of the market for single family homes and condos. With the low inventories of property available continuing to decline and demand remaining stable, upward pressure is beginning on list and sales prices.
Don't miss this opportunity to get a great buy by waiting for the market to hit bottom. You won't know when that is until AFTER it's occurred! It may have already occurred for condos!!
If you'd like some assistance to take advantage of these A UNIQUE market conditions, call Dwight Ellis at 808 351-1507.
Tuesday, December 8, 2009
Monday, November 30, 2009
Hawaii Real Estate Market Update
As we near the end of the year, it's always good to look at the positives and negagives of the market and what the future may hold.
Positives:
Low interest rates
Increased individual purchasing power
Extended first time homebuyer tax credit
Expanded tax credit program for home owners purchasing a home.
FHA extends higher loan amount ceilings.
Stock market is moving up
National GDP at 2.8% (The recession is over?)
Fed promises to keep interest rates artificially low to strengthen economoc growth.
Low prices for real estate
Low inflation
Housing market in the US is stabilizing
Negatives:
Mortgage loan requirements are more stringent, limiting Buyers who can qualify.
FHA rules for condo approvals are changing and in flux
GDP Growth is due to public sector Cash for Clunkers and First Time Homebuyer tax credits. These programs eventually end along with any jobs created.
With the Treasury printing and expanding the money supply, the value of the dollar is softening.
Low housing inventory means multiple offers and competition for well priced properties.
Hawaii unemployment will probably continue to rise with the upcoming increase in the unemployment fees for businesses to make the state unemployment fund liquid. Businesses will probably do less hiring and/or go out of business.
Summary:
Based on the positives and negatives noted above, indications are that 2010 will be close to the bottom of the real estate cycle for Hawaii.
As a result, this is an excellent time for Buyers who can qualify for a loan, to purchase a home.
It's also an excellent time for Sellers who need to sell, to sell quickly if priced well.
It's also an excellent time for sellers to move up by purchasing a better home in a better neighborhood, with the low prices currently available.
If you'd like to discuss your options as a Buyer or Seller, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351- 1507.
Positives:
Low interest rates
Increased individual purchasing power
Extended first time homebuyer tax credit
Expanded tax credit program for home owners purchasing a home.
FHA extends higher loan amount ceilings.
Stock market is moving up
National GDP at 2.8% (The recession is over?)
Fed promises to keep interest rates artificially low to strengthen economoc growth.
Low prices for real estate
Low inflation
Housing market in the US is stabilizing
Negatives:
Mortgage loan requirements are more stringent, limiting Buyers who can qualify.
FHA rules for condo approvals are changing and in flux
GDP Growth is due to public sector Cash for Clunkers and First Time Homebuyer tax credits. These programs eventually end along with any jobs created.
With the Treasury printing and expanding the money supply, the value of the dollar is softening.
Low housing inventory means multiple offers and competition for well priced properties.
Hawaii unemployment will probably continue to rise with the upcoming increase in the unemployment fees for businesses to make the state unemployment fund liquid. Businesses will probably do less hiring and/or go out of business.
Summary:
Based on the positives and negatives noted above, indications are that 2010 will be close to the bottom of the real estate cycle for Hawaii.
As a result, this is an excellent time for Buyers who can qualify for a loan, to purchase a home.
It's also an excellent time for Sellers who need to sell, to sell quickly if priced well.
It's also an excellent time for sellers to move up by purchasing a better home in a better neighborhood, with the low prices currently available.
If you'd like to discuss your options as a Buyer or Seller, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351- 1507.
Wednesday, November 25, 2009
Now is a GREAT time to buy that first home!!
If you’ve done your homework, and saved your money, NOW is a great time to buy your first home. Prices are still dropping—a little. But inventory of single family homes and condos is also dropping (so there might be fewer properties in your price range than there were—see the list below).
Interest rates are still low. That means you can still get a good deal in the real estate market. With the interest rates low, your buying power is higher than if the interest rates were high. For example, buying a $750,000 home at 4.5% would cost $650 a month LESS than buying it at 7%!!! That’s a huge savings!
In addition, the first time home buyers’ credit has been extended. You must be in escrow by April 30, and close by June 30, 2010, in order to take advantage of this credit…. Also, the property has to be less than $800,000.
Inventory of homes (both condos and single family homes) is dropping, so soon it may be a sellers’ market. Lots of people will be out there, just like you, looking for their next home, wanting to buy. Now is such a good time to buy.
Here is the breakdown of single family homes available on Oahu (as of today) in various price ranges:
79 homes: $100,000 to $350,000
141 homes: $351,000 to $450,000
262 homes: $450,001 to $600,000
203 homes: $600,001 to $750,000
100 homes: $750,001 to $800,000
59 homes: $800,001 to $950,000
59 homes: $950,001 to $1,100,000
374 homes: over $1,100,001
Here is the breakdown of condos available on Oahu (as of today) in various price ranges (this list may include leasehold properties and studios):
94 condos: to $100,000
396 condos: $100,001 to $200,000
456 condos: $200,001 to $300,000
314 condos: $300,001 to $400,000
173 condos: $400,001 to $500,000
98 condos: $500,001 to $600,000
90 condos: $600,001 to $700,000
56 condos: $700,001 to $800,000
32 condos: $800,001 to $900,000
25 condos: $900,001 to $1,000,000
149 condos: over $1,000,001
There may be a lot to choose from in your price range, or there may be only a few properties.
Call your real estate agent now. If you don’t have an agent you are already working with, please call me… Tiare Dutcher at 808-753-5327. I would be happy to help you find your FIRST home.
Interest rates are still low. That means you can still get a good deal in the real estate market. With the interest rates low, your buying power is higher than if the interest rates were high. For example, buying a $750,000 home at 4.5% would cost $650 a month LESS than buying it at 7%!!! That’s a huge savings!
In addition, the first time home buyers’ credit has been extended. You must be in escrow by April 30, and close by June 30, 2010, in order to take advantage of this credit…. Also, the property has to be less than $800,000.
Inventory of homes (both condos and single family homes) is dropping, so soon it may be a sellers’ market. Lots of people will be out there, just like you, looking for their next home, wanting to buy. Now is such a good time to buy.
Here is the breakdown of single family homes available on Oahu (as of today) in various price ranges:
79 homes: $100,000 to $350,000
141 homes: $351,000 to $450,000
262 homes: $450,001 to $600,000
203 homes: $600,001 to $750,000
100 homes: $750,001 to $800,000
59 homes: $800,001 to $950,000
59 homes: $950,001 to $1,100,000
374 homes: over $1,100,001
Here is the breakdown of condos available on Oahu (as of today) in various price ranges (this list may include leasehold properties and studios):
94 condos: to $100,000
396 condos: $100,001 to $200,000
456 condos: $200,001 to $300,000
314 condos: $300,001 to $400,000
173 condos: $400,001 to $500,000
98 condos: $500,001 to $600,000
90 condos: $600,001 to $700,000
56 condos: $700,001 to $800,000
32 condos: $800,001 to $900,000
25 condos: $900,001 to $1,000,000
149 condos: over $1,000,001
There may be a lot to choose from in your price range, or there may be only a few properties.
Call your real estate agent now. If you don’t have an agent you are already working with, please call me… Tiare Dutcher at 808-753-5327. I would be happy to help you find your FIRST home.
Tuesday, November 24, 2009
Finding a Best Buy
As I continue to mention there are three popular approaches in determining a best buy: 1.) for investors, rental property that yields a positive cash flow with minimal down payment. 2.) Properties where the asking price is substantially below like kind homes that have sold within the last six months. 3.) Properties where the quality or condition is above average, in a highly sought after area, in a neighborhood where the inventory for sale is relatively nonexistent and are selling at or below market value.
Of late the focus has been on the Real Estate Agent and his or her ability and understanding of the market and how best they can help their client exploit certain variation on these three points. In this regard let’s take point (2) Properties where the asking price is substantially below like kind homes that have sold within the last six months. Most recently I came across a listing in Diamond Head, Black Point neighborhood. The property was offered at $1,395,000. The land was assed at $2,179,000 and the structure was $203,900. Black Point is a very desirable area. When looking at the comps this 1,395,000 did meet the requirement of selling substantially below like kind homes that have sold within the last six months. Even if the buyer was considering tearing down the structure and buy only for the land. The assessment still gives a strong indication this is a good buy.
If you would like any further details on this property or other potential best buys please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how this property or any other can be turned into a great opportunity.
Of late the focus has been on the Real Estate Agent and his or her ability and understanding of the market and how best they can help their client exploit certain variation on these three points. In this regard let’s take point (2) Properties where the asking price is substantially below like kind homes that have sold within the last six months. Most recently I came across a listing in Diamond Head, Black Point neighborhood. The property was offered at $1,395,000. The land was assed at $2,179,000 and the structure was $203,900. Black Point is a very desirable area. When looking at the comps this 1,395,000 did meet the requirement of selling substantially below like kind homes that have sold within the last six months. Even if the buyer was considering tearing down the structure and buy only for the land. The assessment still gives a strong indication this is a good buy.
If you would like any further details on this property or other potential best buys please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how this property or any other can be turned into a great opportunity.
Monday, November 23, 2009
Here's an update on the financial market for the week ending 11/20/09, courtesy of Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Have a Happy Thanksgiving!
Mortgage Market News for the week ending November 20, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
Inflation Low
Retail Sales Rose
Housing Starts Down
Manufacturing Mixed
Events Next Week:
Mon 11/23 Existing Sales 2-yr Auction
Tues 11/24 GDP FOMC Minutes 5-yr Auction
Wed 11/25 Durable Orders Core PCE 7-yr Auction
Bernanke Addresses Falling Dollar
A highly anticipated speech on Monday by Fed Chief Bernanke on the economic outlook revealed no change in the Fed's stance on short-term monetary policy. There were also few surprises in the economic data released during the week. The monthly inflation readings continued to show that inflation is not a cause for concern in the short-term. As a result, mortgage rates barely moved during the week, remaining at historically low levels.
The decline in the value of the dollar has received a great deal of attention lately. While Fed officials rarely discuss the value of the dollar, Bernanke assured investors that the Fed is closely watching exchange rates. However, he then reminded investors that the Fed's dual mandate is to promote full employment and to keep prices stable. According to Bernanke, the value of the dollar is just one of many factors affecting inflation, and the Fed is not concerned by the movement in the dollar so far. With a fragile economy and high unemployment rate, he suggested that the Fed intends to keep the fed funds rate at very low levels. Tightening monetary policy to strengthen the dollar would hurt the economic recovery and slow job creation. After the speech, the value of the dollar fell to the lowest level since August 2008.
If foreign investors expect the value of the dollar to continue to fall, it may pose a risk for mortgage rates in the future. Foreign investors historically have been major buyers of mortgage-backed securities (MBS). When the dollar falls, the value of US assets to foreign investors in their own currency declines, making US investments less rewarding. With the Fed scaling back its MBS purchases over the next few months, a drop in foreign demand would further pressure yields higher to fill the void left by the Fed.
Property Issues – Condos
Last week I addressed property issues primarily for Single Family Homes. This week we look at how issues with condos, could decide if you get financing or not.
Leasehold. There are still lots of rumors out there that financing is no longer available for leasehold properties. That is not true. The basic rules still apply. The lease has to extend 5 years past the length of the loan applied for. If you want a 30-Year Fixed loan, there has to be a minimum of 35 years remaining on the lease.
Owner-Occupancy. This is where the major changes to condo financing have taken place in the past couple of years. The simple guideline on occupancy is if the owner-occupancy is below 50%, you will not get a Fannie or Freddie loan. There are still portfolio products available for these scenarios. If your equity position is less than 20% and mortgage insurance is required, the owner-occupancy jumps up to 70%. Keep in mind that the formula used by most property management companies to determine owner-occupancy as disclosed on the condominium disclosure form is flawed. The rule for owner-occupancy is owner-occupants AND 2nd homes. Most property management companies determine owner-occupancy by tabulating the number of units in which the maintenance fee statements are sent to an address other than the subject property. They will consider all of these units investor properties. The best way to determine the number of investor properties is with the Resident Manager. They know exactly how many renters live in the complex.
Insurance. It is now a Fannie Mae requirement that condo owners carry contents insurance (an H-06 policy) in addition to the coverage carried by the association. If there were a fire, the association’s insurance will not cover appliances, cabinets, etc. This coverage is a good idea regardless of any lender’s requirements.
Also Notable:
October Core CPI inflation was a tame 1.7% higher than one year ago
October Housing Starts dropped 11% from September
The Treasury will auction a record $118 billion next week
The Fed purchased $16 billion in agency MBS during the week ending 11/18
Average 30 yr fixed rate:
Last week:
-0.02%
This week:
-0.02%
Stocks (weekly):
Dow:
10,300
-25
NASDAQ:
2,140
-20
Week Ahead
A wide range of economic data will be released during the holiday-shortened week ahead. Existing Home Sales will come out on Monday. GDP, Consumer Confidence, and the FOMC Minutes from the November 4th Fed meeting will be released on Tuesday. Durable Orders, Personal Income, Core PCE inflation, New Home Sales, and Consumer Sentiment will all be packed in on Wednesday. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday for Thanksgiving. Expect volatility on Friday, as most traders will be gone, making for a 4-day weekend.
Have a Happy Thanksgiving!
Mortgage Market News for the week ending November 20, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
Inflation Low
Retail Sales Rose
Housing Starts Down
Manufacturing Mixed
Events Next Week:
Mon 11/23 Existing Sales 2-yr Auction
Tues 11/24 GDP FOMC Minutes 5-yr Auction
Wed 11/25 Durable Orders Core PCE 7-yr Auction
Bernanke Addresses Falling Dollar
A highly anticipated speech on Monday by Fed Chief Bernanke on the economic outlook revealed no change in the Fed's stance on short-term monetary policy. There were also few surprises in the economic data released during the week. The monthly inflation readings continued to show that inflation is not a cause for concern in the short-term. As a result, mortgage rates barely moved during the week, remaining at historically low levels.
The decline in the value of the dollar has received a great deal of attention lately. While Fed officials rarely discuss the value of the dollar, Bernanke assured investors that the Fed is closely watching exchange rates. However, he then reminded investors that the Fed's dual mandate is to promote full employment and to keep prices stable. According to Bernanke, the value of the dollar is just one of many factors affecting inflation, and the Fed is not concerned by the movement in the dollar so far. With a fragile economy and high unemployment rate, he suggested that the Fed intends to keep the fed funds rate at very low levels. Tightening monetary policy to strengthen the dollar would hurt the economic recovery and slow job creation. After the speech, the value of the dollar fell to the lowest level since August 2008.
If foreign investors expect the value of the dollar to continue to fall, it may pose a risk for mortgage rates in the future. Foreign investors historically have been major buyers of mortgage-backed securities (MBS). When the dollar falls, the value of US assets to foreign investors in their own currency declines, making US investments less rewarding. With the Fed scaling back its MBS purchases over the next few months, a drop in foreign demand would further pressure yields higher to fill the void left by the Fed.
Property Issues – Condos
Last week I addressed property issues primarily for Single Family Homes. This week we look at how issues with condos, could decide if you get financing or not.
Leasehold. There are still lots of rumors out there that financing is no longer available for leasehold properties. That is not true. The basic rules still apply. The lease has to extend 5 years past the length of the loan applied for. If you want a 30-Year Fixed loan, there has to be a minimum of 35 years remaining on the lease.
Owner-Occupancy. This is where the major changes to condo financing have taken place in the past couple of years. The simple guideline on occupancy is if the owner-occupancy is below 50%, you will not get a Fannie or Freddie loan. There are still portfolio products available for these scenarios. If your equity position is less than 20% and mortgage insurance is required, the owner-occupancy jumps up to 70%. Keep in mind that the formula used by most property management companies to determine owner-occupancy as disclosed on the condominium disclosure form is flawed. The rule for owner-occupancy is owner-occupants AND 2nd homes. Most property management companies determine owner-occupancy by tabulating the number of units in which the maintenance fee statements are sent to an address other than the subject property. They will consider all of these units investor properties. The best way to determine the number of investor properties is with the Resident Manager. They know exactly how many renters live in the complex.
Insurance. It is now a Fannie Mae requirement that condo owners carry contents insurance (an H-06 policy) in addition to the coverage carried by the association. If there were a fire, the association’s insurance will not cover appliances, cabinets, etc. This coverage is a good idea regardless of any lender’s requirements.
Also Notable:
October Core CPI inflation was a tame 1.7% higher than one year ago
October Housing Starts dropped 11% from September
The Treasury will auction a record $118 billion next week
The Fed purchased $16 billion in agency MBS during the week ending 11/18
Average 30 yr fixed rate:
Last week:
-0.02%
This week:
-0.02%
Stocks (weekly):
Dow:
10,300
-25
NASDAQ:
2,140
-20
Week Ahead
A wide range of economic data will be released during the holiday-shortened week ahead. Existing Home Sales will come out on Monday. GDP, Consumer Confidence, and the FOMC Minutes from the November 4th Fed meeting will be released on Tuesday. Durable Orders, Personal Income, Core PCE inflation, New Home Sales, and Consumer Sentiment will all be packed in on Wednesday. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday for Thanksgiving. Expect volatility on Friday, as most traders will be gone, making for a 4-day weekend.
Friday, November 20, 2009
Get Ready for YOUR New Home!!!
First Time Home Buyers: There are a few things that are extremely important to remember in buying your first home, once you are in escrow.
There will be a timeline that is generated, usually by the escrow company. These are deadlines that have to be met in order to keep to the purchase contract. Make sure your real estate agent is meeting the deadlines. Usually, the agent is very aware of the deadlines, but it’s always good for you to be aware too.
One of the items on the timeline is the home inspection. It is important to have a professional do this, someone who is knowledgeable about building structure, electrical wiring, plumbing, roofs, and all the many things that make up a house or condo property. It is important for YOU to be at that home inspection, so that you can ask the inspector questions about what you are seeing…
Another important date is the final walk through. This is usually done about five days before the closing of the property, just before the property becomes YOURS. If repairs had to be done, were they finished? Was there personal property that went with the home? Is it still there? Were there items that were supposed to have been removed from the property? Are they gone? If you are satisfied with the state of the property, you can be assured that it will be just that way when you take possession in a few days. If you are not satisfied, you will need to discuss with your agent what things still need to be done…
Buying a home for the first time is a huge undertaking, and can be scary. A good real estate agent can help you through the process, answering questions and helping to alleviate your fears. If you need a good agent, call me, and I can help you. Tiare Dutcher 808-753-5327.
There will be a timeline that is generated, usually by the escrow company. These are deadlines that have to be met in order to keep to the purchase contract. Make sure your real estate agent is meeting the deadlines. Usually, the agent is very aware of the deadlines, but it’s always good for you to be aware too.
One of the items on the timeline is the home inspection. It is important to have a professional do this, someone who is knowledgeable about building structure, electrical wiring, plumbing, roofs, and all the many things that make up a house or condo property. It is important for YOU to be at that home inspection, so that you can ask the inspector questions about what you are seeing…
Another important date is the final walk through. This is usually done about five days before the closing of the property, just before the property becomes YOURS. If repairs had to be done, were they finished? Was there personal property that went with the home? Is it still there? Were there items that were supposed to have been removed from the property? Are they gone? If you are satisfied with the state of the property, you can be assured that it will be just that way when you take possession in a few days. If you are not satisfied, you will need to discuss with your agent what things still need to be done…
Buying a home for the first time is a huge undertaking, and can be scary. A good real estate agent can help you through the process, answering questions and helping to alleviate your fears. If you need a good agent, call me, and I can help you. Tiare Dutcher 808-753-5327.
Wondering which direction are interest rates likely to move in the next year?
Guy Cecala, CEO of Inside Mortgage Finance believes:
The Federal Reserve launched a program to buy $1.45 trillion of mortgage securities this year, and it has helped to keep interest rates at—or near—historically low levels. But the money should be used up by the first quarter of next year. Interest rates are then likely to rise, possibly increasing to a full percentage point by the end of the year.
Federal Reserve Bank of St. Louis President James Bullard believes:
Past experience suggests policy makers may not start to raise interest rates until early 2012, while concern borrowing costs have stayed “too low for too long” may prompt an earlier move.
There are several different factors that drive the movement of interest rates. Activity in the purchase/sell of 10 year Treasury Bond, economic news such as unemployment, what the Federal Reserve Bank decides to do with the Fed Fund rate, and many other factors.
Which direction do you think mortgage rate will move?
- Linda Le, Loan Officer, Pacific Access Mortgage, 808-561-5943
The Federal Reserve launched a program to buy $1.45 trillion of mortgage securities this year, and it has helped to keep interest rates at—or near—historically low levels. But the money should be used up by the first quarter of next year. Interest rates are then likely to rise, possibly increasing to a full percentage point by the end of the year.
Federal Reserve Bank of St. Louis President James Bullard believes:
Past experience suggests policy makers may not start to raise interest rates until early 2012, while concern borrowing costs have stayed “too low for too long” may prompt an earlier move.
There are several different factors that drive the movement of interest rates. Activity in the purchase/sell of 10 year Treasury Bond, economic news such as unemployment, what the Federal Reserve Bank decides to do with the Fed Fund rate, and many other factors.
Which direction do you think mortgage rate will move?
- Linda Le, Loan Officer, Pacific Access Mortgage, 808-561-5943
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