2022 has been off to a very hot start for the housing market in Kakaako & Ala Moana and the momentum has continued in April with all major metrics firing on all cylinders. The broader condo market in Kakaako & Ala Moana is under buyer pressure with a combination of low mortgage rates and low inventory availability.
What this means for sellers?
In markets such as this with a very high competition from buyers it is the perfect time to list. The current average days on market right now for listings is 22 days which is -21% compared to 2021. The lower average days on market is a key indicator of how quickly listings are selling. Another key insight from April 2022 is while new listings are up 11%, the active inventory is down -16% which means the homes that are being brought on the market are selling fast.
Sellers are receiving on average 98% of the listing value of their condo sales in April 2022. Competitive markets often present sellers with multiple offers some cash and more often we are seeing cash offers in these markets. This is the perfect time to list your home to capture the highest potential value with the fastest time to sale. The median condo sales price in Kakaako & Ala Moana is up +63% from April 2021 to April 2022.
What does this mean for buyers?
Buyers need to make sure they are motivated and can keep momentum going for their search in a competitive market. Time and time again we see buyers getting discouraged when they are being out bid or find a home they like only to find out it received multiple offers shortly after they walked through the home. In addition, having the financing secured and a strong offer letter are key in this competitive market.
Buyers should also note that interest rates are on the rise which means borrowing money will get more expensive and likely happen at a higher rate of increase this year. If your goal is home ownership the first step is to contact us so we can connect you with a lender to get prequalified for a loan right away.
While this market is red hot with activity, having a game plan going into your home purchase or sale will help you navigate through the turbulence and get you to your real estate goals. Something we often remind buyers of in competitive markets is to always check new projects as well. They might find more stability in new project sales and avoid the hassle of the resale market and competing against other offers. If the buyer has the time horizon and sees a development that looks attractive, new project sales can be a great way to purchase a home in a competitive market.