Aloha. George Krischke with Honolulu HI 5.
Sometimes we get asked, is it a good time to buy or is it a good time to sell? Well, the Hawaii real estate market does have a cyclical nature and sometimes there are sizable price gains, and sometimes there are periods of no price appreciation at all.
For example, in 1990, the median sales price on Oahu went up an incredible record breaking 30.4% just within one year. On the other hand, in the year 2009, the median sales price for a Oahu single family home dropped an incredible 7.9%. That was a record drop just within one year. That was just right after the financial crisis.
Over the long term, the Hawaii real estate market has been moving up at a steady ~5% average per year for many years and that means roughly doubling every 10 years. So, sometimes there are markets that favor the buyer, that would be a buyer’s market, a market that has many homes for sale favoring the buyer, many homes for sale and few buyers looking, or we see what is called a seller’s market that favors sellers where there are few homes for sale and many buyers.
For most people that are looking for a home to live in, we don’t really recommend trying to time the market. What’s most important is that everybody considers the big important factors, which is consider your family plans, consider your career plans, consider your finances and as a rule of thumb, the best time to buy might be the time when you need a house, when you can afford it, and when you see something that fits your needs and your lifestyle, at least for several years.
The best time to sell might be when you need the money, or when you don’t need the house anymore. Now, for investors it might be a little different and there are other factors that need to be considered and we’ll leave that for another video at some other time. That’s it for today.
Thanks for watching. ~Aloha.