The news can be depressing. COVID-19 cases are on the rise, businesses are suffering, and unemployment is still high. Despite all the chaos, Oahu's housing market is remaining steady.
Although median single family and condo prices slightly decreased in June 2020 from the same time last year, some sellers are still receiving near full price offers. Every home and neighborhood are different. However, I have recently been on some exciting transactions.
Just the other week, my coworkers, Greg Andrasick (R) and Robin Boolukos (R), listed a property in Kapolei. In three days, we had 50 showing and 30 offers! It appears non CPR homes in Kapolei are popular. Then again, the home is extremely well maintained — the pride homeownership! If you are bored during the pandemic, maybe now is a good time to do some easy DIY home projects. I just installed new blackout drapes. I think I enjoy it more than my son.
When the pandemic started, sellers didn't want to list and we had a fearful buyer pool. That does not seem to be the case anymore. According the National Association of Realtors, "sales of previously owned homes surged 21% in June from a month earlier. That’s a record pace as sales snapped a three-month stretch of declines as mortgage rates tumble."
Like buying stocks, owning real estate is an investment too. If you want to build your wealth, you can take advantage of the low rates. Borrow the cheap money will allow you to lever up.
I have two active listings. One is a single family home located on Kaneohe Bay. Looking for country living? This could be the property for you!
My second listing is a well maintained, large, 1-bed condo at Craigside. Located in peaceful Nu'uanu, this Craigside boasts a ton of amenities including 2 pools, BBQ and recreational areas, a tennis court, sauna and work out room, as well as 24-hr security, and fire-sprinkler protection systems for the unit and building
Let me know if you are interested in seeing these listings.
Greg an I recently closed on three transactions in July. Our most recent transaction was a single-family home in Mililani Mauka. In addition to COVID-19 and Hurricane Douglas, there were a lot of moving parts since our buyers were in escrow on their primary residence. As I recently blogged, the Mililani Mauka market has been highly desirable. I recently spoke to an appraiser and he mentioned the same thing too. Nevertheless, Greg and I are thrilled that our clients were able to secure their forever home!
Selling real estate during a pandemic is challenging. However, we would like to thank our vendors for ensuring a smooth closing! A special shoutout to First Hawaiian Bank, Grey Owl Home Inspections, Pest Tech Hawaii, Menehune Pest Management, and First American Title.
On a side note, contingency sales is one of our niches.
Senate Bill 126
Senate Bill 126 was signed by Gov. Ige with modifications. Gov Ige stated his concern is to expand the CARES Act funding. Since the start of the pandemic, the State of Hawaii has issued $2.5 billion in unemployment benefits. It will be interesting to see what Congress does too.
The global demand for travel has decreased significantly. According to the Hawaii Tourism Authority, "there were a total of 17,068 visitor arrivals during June. The figure marks a 98% drop year-over-year compared to June of 2019, when more than 951,000 visitors arrived in Hawaii." How do we safely reopen the economy? That's the billion dollar question.
According to CBRE, there was a $1 billion decline in Hawaii hotel revenue. A hotel without guest is a business with no revenue. Nationally, revenue per room declined second quarter, by 79.9% in April, 74.2% in May and 60.6% in June. In comparison to Hawaii, the decline was larger — 94.5% in April, 91.1% in May and 89.3% in June.