Corona Virus on Oahu Real Estate
How has Covid-19 AKA Corona Virus impacted our Hawaii Real Estate Market?
How do you feel about Covid-19 AKA Corona Virus? Has it impacted your daily day-to-day routine? Do you notice you aren’t going out as much? Cooking more at home instead of eating out? Do you see your closets and spare rooms full of toilet paper, bottled water, hand-sanitizer, and face masks? Or are you polar opposite and you’re using this time to enjoy the empty beaches, malls, and SUPER cheap airline tickets?
One thing is for sure and that is people are reacting “differently” these days
whether it be people avoiding handshakes, avoiding public spaces, working remotely from home, or bringing out the inner hoarder from within. But the big question for all those soon-to-be homeowners, landlords, homeowners, sellers, investors, and real estate agents is:
How is it affecting our Oahu Real Estate Market?
Now here is the obligatory disclosure — this is my own personal blurb on how business has been personally and not every Realtor on the island may agree or have the same situation. Personally, this month has been super busy. Sure Covid-19 is now a global pandemic and it may have scared away some future home-buyers or investors planning to buy all cash (by liquidating their portfolios). But to those serious buyers who are still looking — now is your lucky day!
First of all, interest rates have reached historic level lows this month. Meaning that your monthly mortgage payment just got a whole lot smaller. Or you can look at it from the other side in the sense that your same monthly mortgage payment now gets you a whole lot more home. Second, you may have less competitors looking at the same property as you resulting in less competition. This certainly doesn’t apply to everything and depends on the property. I’ve personally seen some listings at my brokerage firm go silent and haven’t had any showings. But then again there are properties like my new listing in Waikele that had an astounding 25 groups come by the first open house and has had 13 private showings since we listed.
Then certain neighborhoods and micro-niche markets/buildings that tend to have a lot of foreign buyers are seeing a slowdown. With every day, more and more people become more hesitant to fly and new travel bans come into effect. We may soon see some markets/buildings have more listings that usual. Or some sellers may become more open to pricing their listing “attractively” to move it quickly.
Sellers and listings have been reacting differently as well. Some owners that live in the home that they are trying to sell may refuse or limit the number of showings. Others may opt out of open houses. It has gone so far that some agents have been supplying their own disinfectant wipes and are giving hand sanitizers. Other sellers have been requesting more Virtual 3D tours so that potential buyers and agents can see it virtually to really decide if they want to see it in person. But for those “hot neighborhoods and buildings” sellers are seeing that their property can get into escrow very quickly and get multiple offers if played correctly. It goes hand-in-hand with the low interest rates that buyers are taking full advantage of.
Even some of my buyers now request that I preview and take some 3D virtual pictures (which I don’t mind doing) or video message them so they can see the home without them having to physically be there.
Overall, the market has been more or less the same, but the two very important changes in the market for buyers are:
- Historic low interest rates and
- Slightly less competition in certain areas (depending on the building/market)
When you think about it, at the end of the day, you will always need a place to live. Sure you can continue to rent and isolate yourself from the public until Corona Virus passes, but you need to remember if your landowner needs money they are more likely to sell their investment property rather than his/her primary residence. Plus there’s nothing like the pride of homeownership and have a place to call your own! Plus you get tax benefits, can build equity, and get the chance to see appreciation (if you hold your Oahu real estate long term).
As always, I’m always here if you have or think or any questions or if you are in need of an Oahu Realtor!
