HAS THE BUYER'S MARKET ARRIVED?

According to the Honolulu Board of REALTORS® Monthly Statistical Report for data through February 2023, overall demand continues to slow, prices are coming down, the number of properties for sale have increased and it takes twice as long to sell a home.

Buyers interpret this to mean they are competing with fewer buyers, they have more choice, homes are more affordable, buyers have more time to make a decision and now sellers are willing to negotiate their price down. Does that mean it is a buyer’s market? Not so fast. There are still less than 700 homes for sale on an island of more than 1 million people and the median sales price of $987,000 for homes and $480,000 for condos is still 9.5% higher and 6.6% higher than 2 years ago.

Furthermore, the remaining inventory of homes is just 2 months. That means if nothing new comes on the market for sale, at the current rate of sales, everything would be sold in 60 days. While the market has softened significantly and it is moving towards a buyer’s market, we aren’t there just yet. It is more of a "neutral" market.

As this market normalizes, agent advice includes spending more time preparing a property before launching it on to the market, so that it can sparkle to attract buyers and prepare both a strategic marketing and negotiation plan.

Buyers can now take the time to brainstorm with their agent on a more comprehensive wish list, as well as, a negotiation style to ensure buyers buy the right house for them at a good price.

Keep in mind that every neighborhood is different. Email, text or call Team Maxey to find out if your neighborhood is consistent with the overall island and our analysis above.

Read the full report from the Honolulu Board of REALTORS® here.

Naupaka Mauka to Makai 

In the green-themed spirit of Saint Patrick's Day, we find ourselves reflecting on 

our favorite places that are shrouded in beautiful greenery across the island, from the majestic Ko'olau Mountain Range to the verdant Naupaka-lined shores of Kailua and Lanikai Beach.

Naupaka Kahakai, also known as the beach Naupaka, is indigenous to Hawai'i, and Naupaka Kuahiwi, also known as the mountain Naupaka, is endemic to Hawai'i. 

Naupaka Kahakai is commonly found along coastal areas, especially on sandy beaches and rocky shores. This variety of Naupaka has elongated, paddle-shaped leaves and produces small, white or light purple flowers that bloom year-round. Naupaka Kahakai is also known for its ability to tolerate salt spray and sandy soil, making it an ideal plant for coastal landscaping and erosion control.

Naupaka Kuahiwi, or mountain Naupaka, is found at higher elevations. This variety has smaller, rounded leaves and produces larger, white flowers with a yellow center. 

Naupaka is a beloved and iconic part of Hawaiian flora, from the sandy beaches to the mountainous regions.

Our recent appointments brought us north of Kailua along the Windward Coast, where we decided to stop in at He'eia Kea Pier & Deli for lunch. 

Extending into Kaneohe Bay, He'eia pier is a picturesque location for fishing, boating, and other recreational activities - including eating! 

He'eia Pier General Store and Deli showcases local flavors with fresh seafood, poke bowls, kalua pork, and loco moco. Rick and Nani both opted in for the beef stew, a Maxey family favorite. 

This area is also home to the He'eia Fishpond, a 400-year-old Hawaiian aquaculture site which has undergone a significant restoration process over the years to preserve its cultural and environmental significance, including a community-led initiative to rebuild the wall that surrounds the pond. The restoration project also involved clearing the pond of invasive species and replanting native vegetation to restore the ecosystem. This has helped to improve water quality in the area and preserve the biodiversity of the bay. The fishpond is now used as an educational site to teach visitors about traditional Hawaiian aquaculture practices, as well as a location for cultural events and activities.

Rain or shine, we always enjoy visiting He'eia with its scenic ocean views, diverse range of marine life, and cultural significance. You can read more about He'eia fishpond here. 

Our Weekly Pit Stops at Lanikai Point

We often make a pit stop at Lanikai Point throughout the work week to check out the conditions and simply enjoy the fresh air. 

Similar to last week when we visited Halona blowhole, the trade winds have been blowing steadily all week. 

Rick's favorite part of these conditions is seeing the windsurfers and kiters come out to play in Kailua. Kailua Bay's trade winds make it a popular destination for windsurfers and kite surfers of all skill levels, whether they are beginners or advanced riders.

Kailua has hosted various international windsurfing competitions over the years, which has further put it on the map as a world-class windsurfing/kitesurfing destination. Rick participated in a number of these competitions in the 70's and 80's. 

Overall, Kailua Bay is considered one of the best spots in the world for windsurfing and kitesurfing, and it's a great spectacle during our Lanikai point pit stops!

Scenic Drive Along the South Shore

Between recent client showings, our commute included a beautiful coastal drive along the south shore. The trade winds have been a steady presence for the last few weeks, making for a stunning display of churning whitecaps along the coast during our drive.

We decided to stop at the Halona Blowhole Lookout and take in the powerful ocean scenery. Located between Haunama Bay and Sandy Beach Park, this natural lava rock opening puts on a spectacular show when the waves are up. 

That being said, the ocean, shorelines, and blowholes can be unpredictable and dangerous, affected by the tide, weather, and other factors. It's essential to follow the safety guidelines and rules provided by local authorities and any accompanying signage displayed at the location. 

The surrounding area of this lookout is also known for its stunning views and nearby beaches. Halona Beach Cove is just a short walk from the blowhole and a popular spot for locals and visitors alike. This tucked away beach has been featured in several Hollywood movies and television shows, including From Here to Eternity, 50 First Dates, Pirates of the Caribbean 4: Stranger Tides, and Jurassic World: Fallen Kingdom, to name a few!

Halona Blowhole is shown in the above video and nearby Halona Cove in the below photos. 

O'ahu Market Update - Prices Decline Amid a Drop in Demand

After months of demand declines, prices finally began to soften. The average sales price and the median sales price for homes took a 10.8% dive, landing at $1,139,294 and the median price for homes dropped below a million dollars ($970,000). The condo/townhome median price dropped to $495,000, which was a 2.9% decline. The average price of a condo increased slightly to $633,441 a 1.5% gain. 

A softer market usually means less competition for properties, allowing the buyer time and leverage to negotiate a price with the seller. Last month, buyers paid 95.9% of the list price. While this may not seem significant, consider the fact that buyers paid 101.6% of the list price during the same month last year. That’s a 5.2% change and, if applied to the current median sales price, that equals $50,440. That is a pretty chunk of change.

For those homes that sold last month, the median days on market was still just 24. Sellers can feel comfort in the fact that properties still sell within a month and the inventory of homes for sale is dropping, which could make this buyer leverage market short-lived. 

In summary, the market seems to be like a pendulum. The low inventory, and low-interest rate pandemic market swung sales high on one side of the pendulum, and now the quick rise in interest rates and prices has swung the pendulum in the other direction. As we journey through these volatile market changes, it is important to receive counsel from a professional Realtor who can guide you through these changes.

Read the full report from the Honolulu Board of REALTORS® here.

In the early 2000's, Rick's father/Nani's grandfather, Homer A. Maxey, took to the sea on a 'three-hour tour' with two of his fishing pals aboard the Moku Manu.

Little did they know, they would cross the path of a 137 pound black marlin! 

Rotating one-by-one in the fighting chair, it took hours for the three seasoned fishermen to boat this beautiful fish. 

Tipping the scale at the Kaneohe Yacht Club, the photo below depicts a very proud Homer Maxey with his "catch of the day", as well as the three friends published in the local newspaper. 

In the coming weeks, we are looking forward to sharing more wonderful stories of Homer A. Maxey, a beloved role model to Rick and Nani.

A massive shift in leverage has occurred over the last six months and that leverage applied downward pressure on sellers’ list prices. According to the Honolulu Board of REALTORS® Monthly Statistical Report, last month home sellers sold for 96.7% of their list price, while condo sellers sold for 98.5% of the sellers' list price.  That’s a far cry from the 102% buyers had to pay just 6 months (100% for condos) ago. 

The shift was a result of more choices for buyers to choose from, less competition between buyers for properties, and additional time to make their decisions. In fact, days on market last month jumped by 127% for homes and 63% for condos. It took 25 days for home sellers and 21 days for condo sellers to accept an offer for the homes that sold last month. Additionally, the number of homes for sale rose by 93% for homes and 23% for condos.

The good news for sellers is that those numbers barely affected overall home prices as the median sales price and the average sales prices saw very little movement. The median price for homes that sold last month was $1,045,000, which is a 0.5% drop compared to the same month last year, while the average price actually rose by 1.7%. 

The median price for condos increased by 3.6% to $502,500 while the average sale prices dropped by 4.6%.  Why didn’t prices go down? More than likely, we are still experiencing a lack of housing overall on the island of O'ahu, which stabilizes home prices and keeps them at high price levels. According to the Department of Economic Business Development and Tourism (DBEDT), we are on track for a shortage of 46,000 housing units by 2030. 

“What will happen in the next few months,” is a common question we hear from our clients. In this case, we look at short-term indicators to provide insights into potential future trends. For example, 'Inventory In Escrow' is down compared to last year by 47% for condos and 45% for condos. Since escrows typically take 45-60 days to close, these figures provide us with short-term predictions for the market.  

Read the full report from the Honolulu Board of REALTORS® here.

A silver lining may emerge as the real estate market on O'ahu shifts. While mortgage interest rates and stable home prices affect the affordability of a home, it seems sellers are now willing to negotiate their prices with buyers. Additionally, the number of homes for sale on O'ahu have afforded buyers significantly more choice.

According to the Honolulu Board of REALTORS®, Monthly Statistical Report which includes home sale data through November of 2022, the number of homes sold in November declined by 48.2% as compared to the same month last year. Condos followed suit with a 43.4% decline in November. Concurrently, the inventory of homes for sale increased by a whopping 86.3% for homes and 20.4% for condos. Yet, home prices continue to remain strong. The median sales price of $1,149,500 is up 9.5% from last month and 9.5% as compared to the same month last year. Condo prices have mixed reviews, having the median dropping by 4% and the average price increasing by 6.3% as compared to last year. There are some signs that this trend may change as buyers who purchased last month were able to negotiate sellers down to 98.4% of their asking price for homes and 98.8% for condos.

While we don’t know what the future holds, we do know that demand is trending down, allowing buyers to have more choice and motivating sellers to negotiate their prices with buyers.

In a changing market, it is vital that buyers and sellers keep in touch with their agent and receive the most current market data, trends and tactics to attain their home ownership goals.

Read the full report from the Honolulu Board of REALTORS® here.

One of the first winter swells of the year fell on Thanksgiving holiday thanks to a cold front storm system bringing strong winds and high surf to the north-east facing shorelines of the Hawaiian Islands, including Kailua and Lanikai beach.

The Mokulua Islands have been putting on quite a show, with thunderously large waves wrapping around the twin islands. Not only can the outer reef surf be heard from the shoreline, but throughout Lanikai loop, as well. This is often how we first know that a large swell has arrived—we can hear it before we even see it!

(Click the below fishing photo of Rick to view footage we captured of the Lanikai swell)