Honolulu (KHON2) – Despite economic woes during this pandemic, people are continuing to buy homes, and it’s leading to quick sales at high prices across Hawaii.
Realtor Erik Taniguchi with Taniguchi and Associates joined Living808 to talk about what’s driving the local housing market.
“When the pandemic first hit, we saw the spring market slow down,” explains Taniguchi. “Then, we saw interest rates drop, more people working from home and buyers started to come out. But without enough homes for sale on the market, that led to pent-up demand from buyers who are looking for homes, and it’s driving a seller’s market for single-family homes.”
The combination of low interest rates and low inventory is leading to homes selling fast, with multiple offers.
Taniguchi cites a recent example, saying “We had 62 groups at an open house for a home in Kapahulu and eight offers came in. The home sold for $100,000 over asking price.”
As for potential buyers, Taniguchi says they need to be ready to move quickly so they should get prequalified for a loan, and find an agent who is good at communicating, has experience and their finger on the pulse of today’s market, because it’s changing so quickly.
Some possible developments that could change the market: the pandemic, presidential election, high unemployment, a drop in building permits, and interest rates.