2018 is starting right where 2017 left off, with inventory at record lows resulting in prices still mostly at record highs on Oahu and most of the outer islands. Interest rates have risen a little, but like many of you I remember when we thought 8% was a great rate! We are building only half of what we need annually and buyers/investors are still snapping up properties as soon as they hit the market! More often than not, sellers are receiving offers at or slightly below their listing price in less than 30 days! In fact the median DOM (days on market) per the Honolulu Board of Realtors is 20 days for SFRs and 18 days for condos and townhomes!
Investors are snapping up Waikiki condos as we are seeing existing record tourism levels continue to climb and demand for vacation rentals rising. There is a good deal of pressure on rents, both for vacation rentals and long term rentals and investors are reporting record returns on their investments (ROI). However, be careful, Hawaii is clamping down on illegal vacation rentals on all islands. It is more important than ever to choose an experienced and knowledgeable agent, who understands the overall general market as well as the nuances of each individual neighborhood. If you are interested in buying or selling, or would like information on specific neighborhoods, please don’t hesitate to contact me. I am available by phone, email or text. I have more than 18 years of real estate experience as well as a prior background in mortgage lending and appraising.