Not a single month went by last year where were didn’t report a combined rise in condo sales and prices. The year started the same, with January 2018 numbers evidencing more of the same. However, with slightly rising mortgage rates to follow, some assumed the trend would come to a halt in February, but that didn’t happen.
Pacific Business News reports that year-over-year sales of condominiums on Oahu rose 5 percent (from 377 to 395 units) in February, with prices rising by the exact same percentage point (from $390,000 to $411,000).
But what about Trump?
By now you may have heard that the POTUS’s new tax law cutting longstanding tax benefits to homeowners may hit Honolulu homeowners in the pocket over the course of a 30-year mortgage. This has some predicting a slow down in overall real estate sales and thus prices. But remember, this cut in tax benefits is over the course of the mortgage. Given that Trump’s law seems to be targeting left leaning states, the law may only remain in effect for another 3 years, if you catch the drift.
In addition, the same heightened urgency to beat climbing interest rates that has increased demand for condos on Oahu, may have the same effect here. News that may deter people buying a home on the mainland doesn’t appear to come with the same consequence in Hawaii. Condos are continue to be demanded by income seeking investors, while people looking for a home are opting for condos as a more financially viable alternative. One might be so bold to state that the demand for condominiums on Oahu is about as inelastic as it can be when it comes to real estate. Yes, again, that’s a bold statement, but we’re just looking at the trend over the last couple of years, where economic uncertainty simply didn’t deter buyers of Honolulu real estate.
There are other factors at play, including the near arrival of the HART rail system which will run from Kapolei to Ala Moana. Historical data shows that rapid rail has the effect of increasing values for multi-residential properties, and with many current and up and coming condo developments running the length of HART’s path, look for demand and prices to keep on ticking upwards.
Of course, time will tell, but if you’re considering buying a condo on Oahu, the time to act is now. In the end, be it three years or 30, you’re going to see a return on your investment. Plus, the mere act of owning an affordable home in paradise is enough for most.
Have a look at our listings, and let’s start talking about an Oahu condo that’s right for you and your goals. Contact the Richmond Realty Hawaii team at 808.284.1004 or via email at firstname.lastname@example.org anytime.
~ Richmond Realty Hawaii ~