There’s some good news and there’s some bad news.
First, the bad: mortgage rates have shot up since the election.
From a low of 3.64% in October, the average fixed 30-year mortgage rate increased to over 4.4% in January. Check out this visual of how interest rates are performing.
Economists are saying this kind of volatility is likely to continue, with day-to-day changes driven by the moves and statements of the new administration.
The good news is that there are plenty of reasons to be optimistic down the line.
Promised tax breaks for high-earners could reinvigorate sales of luxury homes, which have seen a glut lately.
This could have a ripple effect throughout the rest of the real estate market, spurring sales and construction of mid-level and lower-priced housing.
Also, looser financial regulation could make it easier for buyers to obtain mortgages.
One of the biggest challenges facing our market has been low inventory, and one thing we can say for certain is that our President-elect is a builder.
He wants to ease regulations for home builders, and an increase in new construction would certainly help ease the stress low inventory has caused on our market.
You might have seen that the stock market has been surging in the past few weeks.
That might be a vote of confidence for our President-elect and his anticipated business-friendly policies as the inauguration draws near.
It certainly seems things are getting back to normal as people come to realize the world’s not ending.
In fact, many people who were waiting on the sidelines while the election was going on are now entering the real estate market.
It’s a great time to take advantage of this if you are selling.
Home prices are near record highs. If you’d like to get an idea of what your home is currently worth, check out this calculator which takes into account recent Hawaii sales:
And if you’re looking to buy, there are two things you should know.
First, even though mortgage rates have gone up, they are still historically very low, and worth taking advantage of.
Second, many new homes have entered the market since the election, and more new listings will arrive as the spring market approaches.
It’s definitely worth investigating what’s available around Hawaii right now.
If you have any questions, don’t hesitate to reach out and give us a call or send us an email. Thanks and Aloha!