Believe it or not, we are more than halfway through 2022. But don’t worry. It’s not too late to tick off that New Year’s Resolution: buy luxury property in Hawaii.
To help you bring that resolution into reality, here is a mid-year forecast for the housing market.
Prices Continue to Rise
While house prices will likely continue to rise, that increase will be more moderate than what we saw last year.
Inflation has caused nearly everything to rise, and mortgage rates have definitely seen this bump. This past May, mortgage rates jumped to a height not seen since 2009.
These increased mortgage rates have tampered buyer demand. Now more than ever, cash buyers have the advantage. So if you have the extra funds, consider taking this opportunity to invest in another piece of property.
Purchasing a house remains a strong addition to your financial portfolio, as experts predict that home appreciation will rise an estimated 10.3% by the year’s end.
Increased Housing Inventory
The global pandemic caused chaos, well, globally. The U.S. housing market was no exception. But after several years of increased buyer demand and limited inventory, experts expect home sales to return to pre-pandemic norms.
Plus, a midyear update from Realtor.com predicts more options for home shoppers. According to the forecast, “The number of homes for sale grows more than originally projected. The growth is driven by a combination of more sellers and a slowing home sales pace.”
If the predicted 15% YOY growth in actively listed homes does indeed happen, you definitely want to keep your eyes on the listings. Persistent shoppers will likely find many buying opportunities in these shifting market conditions.
What These Trends Mean for You
Expert advice is mixed on whether or not now is a good time to buy a house. At the end of the day, the best time to buy a house is a time determined by your personal life and unique financial situation.
The market is still a bit nervy, but take a deep breath. Remember when everyone was panic-buying toilet paper? Buying a house is obviously a bigger financial decision than stockpiling dry goods. So be patient as you look for the house or property that you really want. Operating from a place of panic leads to sloppy decision making.
That being said, Big Island real estate remains a competitive enterprise. Waiting could mean you miss the opportunity to purchase your dream island home. So even if you don’t think you’re ready to buy right this second, it’s worth starting the search process sooner rather than later.
How to Make the Best Move
If you’re feeling unsure about your next real estate move, the best strategy is to work with an informed professional. Local knowledge will be especially important if you’re a mainland resident looking to buy on the Big Island for the first time.
Let’s work together to make 2022 the year you purchase a piece of paradise.
Aloha, and welcome to Hawaii.