May Showers bring…Mud.
|The April Residential Real Estate numbers are in and things are looking like we are on the mend here on Oahu.
The National Association of Realtors defines a healthy Market as one in which there is a six month supply of homes available. Our March numbers were 14.7 months for single family and 16.1 for condos which was a near record high amount of inventory. The great news is in April we had a 9.7 months supply for single family and a 10.1 months supply for condos, so you can see the trend is going in the right direction!
|These numbers were not the result of a vast increase in sales but rather quite a few listings expiring or being withdrawn from the market. Sellers with overpriced homes that did not absolutely have to sell at this time are starting to wake up and smell the Real Estate Market Coffee
The inventory of active listings for April was 1,822 single family homes and 2,514 Condos, reflecting a drop from previous months. Sales nudged up slightly with 189 SF and 257 Condos sold.
We are roughly at the sales volume we were at in 1999, according to the Honolulu Board of Realtors data. Real Estate trends here typically move in a ten year cycle. We saw a spike in the early 90′s due to foreign investment, which tanked as the Japanese Stock market bubble burst. Our spike in the mid-2000′s was due largely to the availability of domestic funds because of the loosening of mortgage requirements. And we all know where that has gotten us now…
Archive for ◊ May, 2009 ◊
|Some agents are in favor of pre-sale home inspections and some are not. I am in favor of them in this market because it will set you apart from your competition for several reasons.
You are demonstrating to buyers that you have nothing to hide and that you are going the extra mile to provide full disclosure of the property condition. Buyers are less likely to come back and cause issues stating that you concealed known defects when a home inspection report is provided prior to sale.
This also enables you to do any repair work prior to the sale. You can repair everything, or you can repair some things and disclose the rest, leaving it up to the buyer how they want to structure their offer.
|Buyers are often willing to accept defects that are disclosed at the outset of the transaction. If defects come up in their home inspection they are more likely to demand the seller address those issues as a deal breaker. As an agent, I would insist the buyer to also do their own inspection to show that the seller’s report is not biased.
Keep in mind it is not part of the inspector’s report to suggest methods, materials, or costs of corrections for any deficiencies. Keep those suggestions to a neutral, third party licensed contractor.
|Short and to the point, it’s too nice a day here in beautiful Hawaii for me to be indoors on a computer!