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)

MAHALO TO OUR VETERANS

Today we take a moment to thank our nation’s veterans for their courage, their

commitment, and every single sacrifice they’ve made to keep our home safe and

sound. Honoring our veterans today and everyday. Mahalo for your service. 

Market Movement Creates More Choices for Buyers

As expected, rising interest rates have softened the demand for housing, illustrated by a decrease in sales for both homes (-34%) and condos (-19%). However, sales prices continue to move up by close to 5% (4.8% - homes, 5.1% - condos). Additionally, it still took less than 3 weeks for properties to accept an offer on their home. 

A slowing market means that buyers will have more choices and more time to find the right home for them. Inventory of homes for sale increased by 43% last month as compared to the same time last year, while condos increased by 10.8%. Buyers should also be thrilled that, for the first time in years, the average buyer paid less than 100% of the list price for properties sold (99.2%). This may be a sign that buyers now have room to negotiate with sellers as the market shifts.

During a shift in the market, it is important that buyers and sellers stay in close communication with their trusted real estate advisors. Not all neighborhoods may be moving in the same direction or at the same pace. When you're ready to make your move, Team Maxey is here to assist you every step of the way. 

If you are interested in selling, having experienced realtors by your side is critical during this shifting market. Even though the overall housing market has softened, each neighborhood's market trends are unique in their own way. There are still fantastic opportunities for Hawai'i sellers! 

If you are interested in buying, we're here to guide you through the nuances of Hawai'i real estate. Our lifelong tenure within the local community means that we often hear of listings before they hit the market. Furthermore, we are often able to gather intel on properties that can assist with your negotiating power.

Whether you're interested in buying or selling, the Maxeys are your advocate and your team, here to advise and encourage you throughout your real estate journey. 

With change comes opportunity. Ask us about the opportunities in today’s market.

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