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  • Ryan O.

October Updates

THE CONVERSATION

2023 has been a difficult real estate market since mortgage rates have doubled since 2020. Despite this setback, my clients have been able to successfully buy and sell real estate. If you want to achieve your real estate goals, you might have to have these three qualities.


Relationship With Money

I have represented an array of buyers. Some can purchase all cash, while others have to put 3% down. One thing all my clients have in common is they have a positive relationship with money.


These people:

  • Invest in their financial literacy.

  • Set goals.

  • Budget.

  • Invest well.

You can own a house, but might have to make sacrifices.

Surroundings

When I was a kid, I remember my pediatrician telling me, "You are what you eat." The same thing can apply if you are looking build your wealth through homeownership.


If you want to be a homeowner, you should hangout and talk to other homeowners. Putting yourself around other likeminded people will help you achieve your goals.


If you need advice, talk to your Realtor or someone you deeply trust. Buying a home is huge investment. Don't guess -- you should educate yourself. Ideally, your mentor should be more knowledgable than you.


Less Screen Time

We spend way too much time on our screen. I understand that social media can be a powerful tool. Personally, I use YouTube to help me with home maintenance projects. However, I definitely make a honest effort to not get dragged into the social media doom loop.


It might be good to stay away from the social media real estate "experts". It seems like everyone is trying to flip homes. Someone of these people make it seem normal to be leveraged through the roof with hard money lenders. Perhaps, it might be best to avoid the get-rich-quick schemes.


Lastly, your home is your castle. All that matters is how much you love your place.


TIDBITS

If your home belongs to a homeowner's association, you can run for the board of directors. Did you know...

  • Each condo is governed by a board of directors and these are elected by homeowners.

  • The board of directors are volunteer positions. At some condos, the board of directors will create committees and they will ask the other homeowners to volunteer their time.

  • By law, every board member has to place their fiduciary duty to the association above their own.

  • The board of directors is responsible for the upkeep the property. They are also responsible for keeping the association's finances strong. The board of directors will also hire an association property manager and or staff to help with the day-to-day operations of the condo.

  • By law, the board has to meet at least once a year.

HOME MAINTENANCE

The other month, our washer drain pipe had a clog. Unfortunately, the water backed up into our unit, but it was only contained to a very small area. After 535 Plumbing cleared the drain, I purchased a B-Air 1/4 HP Air Mover Blower Fan from Home Depot to dry the carpet and some parts of the drywall. To my surprise, after a few hours of being on, the area was dry.


If you live in a condo, it might be good to purchase this product since water leaks can happen unexpectedly. On a side note, since it's still been hot and humid, we have been using the B-Air as an addition fan. This things really cranks!


OCTOBER MARKET STATS

Our housing market is inching along. Last month, Greg and I represented the buyer for a Mililani single-family home purchase. The property was listed over 100 days ago and it fell out of escrow with the previous buyer. Our buyer was able to purchase the home for less than list price too.


If this was 2020 or 2021, that home probably would have had 10+ offers with all of them being above asking price. Since mortgage rates have doubled since then, there are less buyers.


Nationally, it appears home prices could be on decline.

OPPORTUNITIES

Is it a buyer's market or is it a seller's market? To be honest, I really don't know. Here is something to think about:


(1) The median home price in Honolulu County is over $1 million. Interestingly, Laie, is one of the highest priced zip codes in the state.


(2) Home prices soared during the pandemic and prices have leveled out in 2023. Despite mortgages being at 7%, home prices have not fallen sharply.


(3) According to UHERO, home buyers needed to earn nearly 180% of the state’s median income (or $150,000 per year) to afford the median home. In addition, fewer than one-third of the population can afford a home.


(4) Single-family home have increased over 250% since 2000.


Stay safe and health.


-Ryan Oda



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