After an unprecedented run these past three years or so, there’s no doubt about it: the Big Island’s housing market is currently going through a normalization.
What, exactly, does that mean?
In a nutshell, it’s just like it sounds—the Covid-19 pandemic caused quite a kerfuffle in the local and national marketplaces, creating a buying frenzy the likes of which have never been seen.
Several factors contributed to the bonanza, including:
- The increasing ability for workers to work from anywhere (and the never-ending allure of living in paradise!)
- Record-low interest rates
- The ongoing lack of new and available housing, a trend that began after the market crash of 2008
All in all, these circumstances created a perfect storm for buyers of choice and sellers of every kind, with some open houses seeing lines of potential buyers stretching for blocks.
The first stats of 2023 (for January) are officially in, and there’s no doubt that the sales numbers are down by way of comparison to the past few years:
- Single-family units saw a 39% reduction in total number of sales year-over-year last month
- Condos saw a 47% drop in total sales
However, this is certainly not bad news!
Not only is the market normalizing across the Aloha State and across the nation, but this also means that opportunities for home ownership are likely to increase for many as the year rolls on. It’s a wonderful time for both buyers—who will enjoy an expanded and more-affordable marketplace—and sellers, who will experience an expanded pool of potential buyers to choose from.
Here’s something else to be aware of as you ponder the possibilities:
Is your current realtor up to the challenge?
If not, then you’d best give Karen Bail a call on the double! She’s got the know-how and the knowledge to help make 2023 your very best year yet. Aloha!