2020 was a year of learning and growth. Even though COVID numbers still remain high, there is light at the end of the tunnel since the vaccine is being distributed. As the year comes to an end, I have reflected on the following things...
There was a time when unemployment was over 30% in Hawaii. When the state got shutdown, I took a walk to Kapiolani Park. It was a strange sight to see since Waikiki was a ghost town. You could literally walk down the middle of Kalakaua Avenue.
Despite our economic uncertainty, our housing market has remained resilient. During the thick of the pandemic, I was able to help a handful of first-time homebuyers. Although mortgage rates were nearing 3%, I recommended to my clients that we take our time in buying. Why? I wanted them to fully analyze their financial situation.
Businesses are closing and some workers are being laid off or furloughed. It is important your job is COVID-proof to ensure your finances are stable. More so, it is totally understandable if you buy within or below your financial means.
Now, Later or Never
Homeownership has never been more important. Your home is your castle; your home is your safe place.
Despite the pandemic, some owners are still selling their investment properties tenant occupied. This is a concern because that means the tenant has to let strangers (buyers and buyer agents) into his/her rental. If I was a tenant, I would not want outsiders in my bubble.
If you rent, maybe you should consider to buy. Historically, rents tend to increase. Plus, your rent is paying your landlord's mortgage.
In addition, there is a misconception that the housing market will tank. If you check historical data, our housing market did okay even after the 2008 financial crisis. There is only a finite amount of buildable space on Oahu. That is one reason why our housing supply is chronically low.
If you are the type of person who is looking for a deal, you might be waiting on the sideline for a very long time. Greg, Robin, and I listed a detached, single-family home in Kapolei earlier this year and we had over thirty above-asking offers.