Our housing market is usually one of the shining stars in our local economy. Despite COVID-19, Oahu's housing prices have remained steady or have increased in certain neighborhoods. While there were many uncertainties when the stay at home order was put in place, our housing market seems to have regained traction.
One reason mortgage rates are in the 2-3% range is the FED is buying mortgage backed bonds. If this sounds familiar, the FED did something similar in the 2008 housing crisis. The purchasing of mortgage backed bonds helps with liquidity and will push rates lower.
Rates are historically low and many of my clients are refinancing and a handful are buying. Since we are living in a pandemic, refinancing to a lower monthly payment can give you peace of mind. Can you imagine savings hundreds of dollars a month? In terms of buying, money is cheap and it can be the opportune time to lever up and purchase your first home.
Oahu's housing inventory is always low. I personally know people who delayed listing their home due to COVID-19. During the past few months, I had a handful of listings. The majority of them entered escrow within days or being on the market. I am helped my coworkers, Greg Andrasick and Robin Boolukos, with their Kapolei single family home listing. We had over 50 showings within the first three days on being on the market!
If you are looking to buy, it is important to be prepared. Talk to your Realtor, get preapproved by a lender, study the market, and put your best foot forward when you submit an offer. There are not many homes for sale and the good ones will probably sell fast.
-Roda