How has Corona Virus impacted our Market thus far?
Has Covid-19 aka "Corona Virus" impacted your daily routine? Are you noticing you're not going out as much? Do you see your closets full of toilet paper, hand-sanitizer, and masks? Or are you the opposite and using this time to enjoy those empty beaches, malls, and cheap CHEAP airline tickets?
Well, one thing is for sure and that is people are reacting "differently" these days whether it be now working from home, avoiding public spaces, avoiding handshakes, or any of the previous items I mentioned above. But how is it affecting our Oahu Real Estate market?
Now here's the disclosure - this is just my own personal blurb on how my business has been and it doesn't reflect every Realtor on the island. Personally, this past month has been super busy. Sure the now called global pandemic may have scared away some future home-buyers or investors planning to buy using all cash (by selling stocks from their portfolios). But to those who are still seriously looking, it's your lucky day! First of all interest rates have reached historic level lows meaning that your monthly mortgage payments just got a whole lot smaller. Or you can look at it from the other perspective that your same mortgage payment can now get a whole lot more house (more bang for your buck). Second, you MAY have fewer people going out to look at properties resulting in less competition. It of course all depends on the property, I've seen some listings in my brokerage firms go silent and have had hardly any showings. But then again there are other properties like my listing in Waikele which had a whopping 25 groups at the first open house and 13 private showings.
Then certain markets and micro-niche markets and buildings that primarily have a lot of foreign buyers are seeing a slowdown. As more and more people become hesitant to fly and travel bans come into effect, we may see some of these markets/buildings have more listings than usual and some sellers may be more open to pricing it "attractively" to move quickly.
Listings, on the other hand, have been a little different as well. Those owners who currently reside in the home that they are trying to sell may refuse showings or limit the number of potential clients to come in. Others have reduced the number of open houses and some agents even now supply their own disinfectant wipes during open house. Other sellers have been requesting more Virtual 3D tours so buyers and agents alike can first look at it virtually through interactive tours before seeing it in person. But for those "hot neighborhoods and buildings," sellers are still seeing their property get into escrow quickly with multiple offers and it goes hand-in-hand since those buyers can take advantage of low-interest rates.
Virtual 3D tour example that I use for listings. Click the image above to take a look.
Even some of my buyers now request that I take a look at properties for them (which I don't mind) and request pictures before they see it themselves. Below is a 3D picture that I usually take for those buyer clients that are out of state or cannot physically make it. Click the top right corner "fisheye" three times to see it in a normal perspective view.
Actual 360 degree picture of Imperial Plaza. Feel free to click and drag anywhere on the picture to look around.
Overall, things have been more or less the same. The two very important changes in the market to keep in mind for buyers are:
- Historic low-interest rates and
- Slightly less competition in certain areas (depending on the building/market)
At the end of the day, you still need a place to live. Sure you can continue to rent and isolate yourself from the general population while covid-19 continues to spread across the world. But you need to remember, if you are renting and your landowner needs money, they are definitely more likely to sell their investment property rather than his/her primary residence. Plus there's nothing like the pride and sense of ownership from owning your own place! Plus you get tax benefits, build equity, and have the opportunity to see appreciation if you hold it long term!
As always, I'm always here if you have or think of any questions or if you are in need of a Realtor!
Jonathan Pang (R), BIC, CIPS, CRS, GRI, SRES, CHMS, e-PRO
Locations LLC – Broker In Charge (BIC)
Certified International Property Specialist (CIPS)
Certified Residential Specialist (CRS)
Graduate Realtor Institute (GRI)
Senior Real Estate Specialist (SRES)
Certified Home Marketing Specialist (CHMS)
Mobile: (808) 753-7048
Email: Jonathan.Pang@LocationsHawaii.com
Ward Village Aalii Sales Team Member
Locations Masters Circle Award Winner
PREA Leading Edge Award Winner
2013-2019 Aloha Aina Award Nominee
Locations LLC | RB-22025
614 Kapahulu Avenue, Suite 200
Honolulu, HI 96815