As you’ve probably heard, interest rates are on the rise. While rates hit record lows in 2020 and 2021, the federal government began raising interest rates in mid-2022 as a way to fight inflation. And experts forecast that rates will continue to rise into 2023. This makes homes more expensive for anyone looking to buy. So what does this mean for you if you’d like to sell your Hawaii home this year? Let’s find out.
There is less demand
In 2020 and 2021, the housing market greatly favored sellers. Homes were in high demand and there wasn’t enough supply to keep up. But as interest rates have risen, the demand for homes has cooled. If you’re planning to sell your Hawaii home in 2023, then be aware that there will be fewer potential homebuyers out there. Fewer buyers mean fewer offers, which means buyers now have more negotiating room than they did in recent years. Buyers that are interested in your home now will be more likely to want to negotiate the purchase price and other terms of the deal.
You need to price your home correctly
Home values skyrocketed during the pandemic as demand surged. But rising interest rates have begun to temper those meteoric surges in home prices. Sellers are no longer having extreme bidding wars on their properties with dozens of buyers submitting offers above asking. While you can still get a great return on your investment in our current market, you do need to be smart when it comes to pricing your home. Take into consideration current comps in your neighborhood and rely on the expert advice of your real estate agent when determining the listing price for your home.
Scrutinize those mortgage pre-approvals
Serious buyers will get pre-approved for a mortgage before they put in an offer on a home. But as a seller in today’s market, be sure to scrutinize that pre-approval before accepting the offer. With mortgage rates rising, you need to confirm that the buyer’s pre-approval was based on current rates and not at a lower rate that no longer qualifies. You don’t want to lose valuable time on a deal that ultimately will not close.
Understand your motivations
If you’re not sure whether now is the right time to sell your Hawaii home, then consider your motivations. Why do you want to sell your home right now? Are you relocating for a job? Do you want more space for an expanding family? Would you like to downsize now that your kids are grown and have moved out? There are many non-financial reasons for selling a home. Understanding your reasons for wanting to sell can increase your confidence that now is indeed the best time for you to list your home.
Work with a professional
Today’s real estate market can certainly be a little intimidating, especially if you’re selling a home for the first time. When you work with a professional, they can help you navigate every step of the journey with confidence. If you’re ready to sell your Hawaii home, then contact Keller Williams Honolulu at 808-596-2888 or [email protected] today!