It's a funny thing being a realtor for 10 years, experience allows me see
the precursors to new cycles. Like the adept hunter in the forest following a wolf's tracks; they can tell how big it is, what it ate last
and which direction he is headed. As an astute realtor, like the hunter,
I observe the signs of where the marketing is heading. Here are my top indicators of why this once sideways market is ramping up to be a hot Seller's
market in 2013:
- Low Inventory + High Demand = Ready Set Compete! My
www.honuakaha437.com listed was in escrow within 4 days. Agents were
constantly calling, no hounding me to see it. And there we were, first
come - first served. The Buyer knew the market, he knew it was a great
value, he had financing lined up and it was just a matter of time before
he found the right place. The Buyers who are ready to take immediate
action, get immediate answers. This means, you have your client ready
with a Pre-Qualification Letter, with an "As Is" Addendum,
and your offer is priced right to beat out the competition.
Talk: Time to Learn & Listen - As you go through your day to day
conversations with escrow officers, brokers, agents, buyers and sellers -
if you listen closely and ask questions you the hear trends and
connect the dots to see the bigger picture. In a recent conversation
with an escrow officer, she noted, "I'm starting to see escalation
clauses. I have not seen those since 1998." When I had a chance to go
back and look at the sales data for 1998 - she was absolutely right on
the money. Sure enough there was a 25% jump in volume. Houses were
flying off the shelves!
- Market Factors - There are two big fires that are stoking O'ahu real estate engine in 2013 - The baby
boomers retiring and needing cash offset by the 20-40 something's pent
up demand for houses. With more details coming to light about social
security cuts due to our federal sequestration, many retirees are
realizing Hawaii isn't an affordable option. The factors compel them to consider the general market activity in their neighborhood and timing selling their mortgage free house seriously to cash out and downsize or downsize in a more affordable location. In the same vein, I hear
more stories about reverse mortgages, home owners have to sell when the equity bottoms out, scary! And don't forget the steady influx of foreign buyers, mainly Japanese and Canadian, in the mix that keeps our O'ahu real estate market in heightened state demand.
2013 is looking to be a fine year for Buyers to find value properties and still historically low interests rates. And Sellers to actualize property appreciation and increased volume to make it worth their wild to sell. Hang on, strap yourself in and let's enjoy the ride!Minoo Elison Timm is a realtor in Honolulu with iProperties Hawaii. Her website is www.hawaiihomemarketmentor.com. She loves market stats, staging properties and helping her clients - whether be the seasoned investor, first time homebuyer or seller looking to upgrade to a new and better house. The time is right! Contact her at (808)255-8757 if you have any questions or would like to schedule a viewing of any of the properties you see on listed on Trulia.