Buying a detached, single-family home has never been more difficult. Low interest rates and the lack of inventory has made the single-family home market extremely competitive, especially in Central and West Oahu.
Have you been to an open house lately? There are people lined up onto the sidewalk; some listing agents are hosting their open house from noon to 5 PM to accommodate the flood of buyers. For private showings, it is nearly impossible to get an appointment. When you get to the showing, you will barely have 15 minutes to checkout the home until the next party shows up.
If you are thinking about selling, now could be the time. Sellers are getting top dollar for their homes too! A home in Waipio Gentry received 37 offers. Per the listing agent, nearly all the offers were above the list price and many had an appraisal clause too. Doing some simple math, if you submitted an offer, you had a 2.7% chance of having your offer accepted. Great odds, huh?
Koa Ridge just had another housing release too. Castle & Cooke cannot build the homes quick enough — they are selling like hot cakes. Phase III for Nanea drew over 150 applicants for just a handful of homes. Although the odds are overwhelming, at least the sales price for Koa Ridge homes are fixed. But then again, the homes at Koa Ridge do not come with landscaping and some appliances. In addition, let's not forget about Hoopili too.
If rates remain low and if there is an inventory storage this year, our competitive housing market could continue for quite some time. For buyers, you would be putting yourself at a massive disadvantage if you submit a lowball offer. In this type of market, you want to put your best foot forward. Some sellers are not even countering buyers. That is, the offer you submit should be your best-and-final offer.
Are there deals? I am sure there are some out there. Certain condo markets are a little soft because people want out of city so they can live in the ‘burbs. However, let us remember that things will probably go back to our old normal. If some single-family homes are selling for a premium and if some condos are selling at a discount, maybe buying a townhome/condo is not a bad idea after all.
Is Oahu real estate ’rona proof? It could be. As I often stated, there is only a finite amount of buildable land on Oahu. Since this is a scarcity issue, owning real estate on Oahu over a longterm period tends to be a good investment.
2937 Kalakaua Avenue #57 • Castle Surf Apts • $855,000 (Fee Simple) • 1-bed/1-bath/1-parking • Maintenance fee of $1,047/month (Cable TV, Electricity, Internet, Sewer, and Water) •MLS: 202101835 • Forward Realty RB-19423.
Aloha living on Gold Coast - oceanfront building with beach access, community deck with tables, chairs & outdoor shower. Adjacent to Elks Lodge, Outrigger Canoe Club, Kapiolani Park & Diamond Head yet on the quiet side of Waikiki. Unit has been updated with travertine flooring & bath, newer kitchen. 5th floor has views over the Elks trees of the ocean, which lends lots of privacy. Full size covered parking & extra garage storage locker for your beach gear, etc.
Let me know if you have more questions!
The Star Advertiser recently reported that Howard Hughes Corporation intends to pay over $100 million in repairs for Waiea luxury condo. I had to read that number twice because I thought it was a typo.
Interestingly, the condo owners of Ke Kilohana sued the Howard Hughes Corporation in 2020 because of maintenance fees and alleged construction defects. The Star Advertiser reported, "(The) result of higher-than-projected operating costs for the 43-story building at the corner of Halekauwila Street and Ward Avenue, no portion of maintenance fees paid by Ke Kilohana condo owners through January have gone toward financial reserves that were supposed to grow by about $14,000 a month. In a separate written statement, the condo board for Ke Kilohana excluding one member from Hughes Corp. said expenses to operate the building have exceeded maintenance fee revenue by $40,000 to $50,000 a month at the tower."
I have helped numerous clients purchase condos. One thing we always do is analyze the financial condo documents because you want to know how the homeowner's association manages the reserves.
Stay safe and healthy.