October 2017 Newsletter

This month we would like to share a valuable link with you from the National Association of Realtors, called Home Ownership Matters.  This link features important topics of home ownership for Hawaii and even has a signup so you can stay current on home ownership topics for the future.

http://homeownershipmatters.realtor/home-ownership-hawaii/

Exciting News for Recordation of Hawaii Property!
In the past, we have a 3-day delay in recording with the bureau for closings.  That means that once you sign closing documents and fund the property it won’t close for another 3 days to allow the paperwork to be sent to Honolulu and record in the courts.  Now Title Guaranty is the test company to file E-Recordation with the state of Hawaii.  We hope that all Title/Escrow companies will be able to do this very soon.  We will update you as soon as we hear more about this exciting news.

We are proud to announce that Gina Duncan, R (PB) is the new President-Elect for the Realtors Association of Maui and we look forward to seeing how much she will benefit our Community!

Mortgage News

Record numbers of millennials still live at home.  Hawaii has one of the highest percentages in the country for homes with multi-generational living.  If you guessed high home prices were the reason, you would be right.  But if you dig deeper into the research, it turns out that most millennials don’t know or understand mortgage financing and the wealth benefits it can generate.

A significant percentage of millennials believe they would not qualify to buy a home because they lack the perceived 20% down payment requirement.  They also don’t know how much a mortgage payment is – thinking that renting is still cheaper.

It is important for not only us in the mortgage and real estate industry to better educateconsumers, but important for parents to light a fire under our kids to motivate them to reach for their own piece of the American dream.  Their first may not be the home of their dreams, but in Hawaii, if you can get onto the “Home Ownership Escalator” you will start to build wealth.

To dispel the myth of how much down payment you need, let’s start with some quick facts about down payments.  There are more programs available today than ever before that require the smallest of down payments.

USDA is 100% financing, but does have restrictions on where you can buy.
Fannie & Freddie 97% financing is available in every community for both houses and condos.
FHA requires only 3.5% down – even for those with less than perfect credit.

Millennials also believe that with the high prices of homes in Hawaii, they will forever rent.  But with nationally high rents, not only would you come out cheaper in the end, you will gain so much in equity!

Let’s do the math on a $300,000 condo purchase with just 3% down.  We’ll compare renting versus buying over a 9 year period.  The charts below take the following into consideration:  Rent will increase 4% each year and home values will increase 4.77% per year (which is the historical average).  Everything is considered, even the cost to sell after 9 years.

Compliments of
Alan Van Zee
President | NMLS #: 297154
Hawaii Mortgage Company, Inc.
Company NMLS #: 232582
Phone: 808.988.6622
alan@hawaiimortgage.net • www.hawaiimortgage.net

Upto Date Reports

Every market is unique, yet the national sentiment has given rise to the notion that housing markets are stalling. Although desirous buyers are out on an increasing number of showings, there remains a limited number of desirable listings. And although mortgage rates have remained enticingly low, home prices have reached unaffordable levels for many new entrants into the housing pool at exactly the same time that established owners are proving to be less interested in moving.

New Listings increased 8.7 percent for Single Family homes and 13.9 percent for Condominium homes. Pending Sales increased 4.9 percent for Single Family homes and 22.0 percent for Condominium homes. Inventory decreased 7.7 percent for Single Family homes and 19.4 percent for Condominium homes.

Median Sales Price decreased 2.3 percent to $650,000 for Single Family homes but increased 14.4 percent to $433,750 for Condominium homes. Days on Market decreased 20.9 percent for Single Family homes and 5.7 percent for Condominium homes. Months Supply of Inventory decreased 17.5 percent for Single Family homes and 29.2 percent for Condominium homes.

Last year at this time, the national storyline was about how high demand was propping up sales and prices despite low inventory and months of supply. That has actually continued to be a familiar refrain for many months in 2017 and now for the past couple of years. But with the likes of Hurricanes Harvey and Irma, different employment outlooks, disparate incomes, varying new construction expectations and potential housing policy shifts, regional differences are becoming more prevalent and pronounced.

Click here for full report.

October 2017

In this issue…

• Our Featured Properties
• Economic Update
• Farmers Market Schedule
• Outside of Real Estate – Calendar of Events
• Video of the Month-

Go to this link and check out the events happening in Hawaii.

VISIT FineIslandProperties.com 
for Maui Listings Search, our Blog, and More!

If you know of anyone looking to purchase a home or sell their home please don’t keep us a secret.  We will treat your referrals with the experience & aloha they deserve.  No Pressure, just Aloha Services. 

“The Key to your Hawaii Real Estate Success”