What an exciting time as we emerge from the pandemic! It is still a great time to sell and it is getting to be a better time to buy.
Graduation…Time to Move!
Graduation has always marked the beginning of a big season for families to consider a move. Of course, kids are going off to college, getting married, or seeking new adventures. Interestingly, families are not as quick as they used to be when deciding whether to move. Folks are staying put longer than usual, in fact, about twice as long according to the National Association of Realtors. This is another factor causing inventory to stay so low.
I would be remiss if Grandma did not get to do a little bragging – last week, my grandsons both graduated cum laude from Kaiser High School (Go Cougars!). Mason will be heading to Trinity International University and Cavin will be matriculating at San Diego State University.
Will the End of Forbearance Lead to Foreclosures?
During the past pandemic year, homeowners who could not afford to pay their mortgages were permitted to not pay (“forbear”) without incurring any penalties.
Unfortunately, that pandemic relief is about to expire. Some have asked me whether the end of forbearance will lead to an increase in foreclosures.
Especially in Hawaii, anyone who has purchased a home since 2013 has accrued quite a bit of equity, with prices rising every year. If a homeowner is unable to settle their mortgage account with the bank, they could sell their house, settle the balance, and still probably have some equity left over ($$$). So no, I do not expect to see lots of foreclosures. We may see an uptick in inventory and maybe a softening (but not a lowering) of sales prices.
Tourism and Real Estate
The connection between tourism’s comeback and real estate sales can be seen in our islands, particularly over on the “9th Island,” Las Vegas. LV home prices in March saw a 10.6% increase from the previous year.
That said, the best example of the link between tourism and real estate is currently the Big Island of Hawaii. As of this writing, it boasts the highest occupancy rate both for TVU (transient vacation unit) rentals and for traditional hotels. It seems that for now, visitors are especially attracted to the wide-open spaces that the Big Island offers.
