The Kaua’i housing market remains as hot as ever—but are rising mortgage rates giving you pause around your next move?
According to recent statistics, 30-year mortgage rates hit their highest average since way back in 2009 in April, with some rising nearly to 7% before a slight decrease to close out the month. For the week ending April 28th, rates averaged somewhere in the neighborhood of 5.1% according to Freddie Mac—a far cry from this time last year, when the 30-year hovered around a historic low of 2.9%.
What might this mean for you?
If you’re looking to purchase, then we think now is the time! Market experts are forecasting that both mortgage rates and the typical sales price for a home will continue to rise throughout 2022 before eventually stabilizing, so holding off on purchasing might end up costing you more in the long run when the average mortgage rate continues to climb. While high interest rates can seem scary, the prospect of paying more than you need for your next home might be scarier—and you know what they say about timing the market!
Demand for any and all available housing continues to far outpace the supply, which means that sellers are looking at an optimal time to list their homes. Many recent purchases have gone above their asking price, and the month of April was no exception: single-family homes came in at a median sales price of $1.15 million, an increase of over 17% from April of 2021. Condos ($820k) and land ($670k) also saw gains from their median prices at the same time last year, according to our friends at Old Republic Title.
In fact, thus far 2022 is even outpacing 2021’s record-setting total sales numbers through this same point in the year:
2021 total sales through April: $402,508,684
2022 total sales through April: $435,194,090
With strong sales in Koloa (38 total units sold) and Kawaihau (24 total), and things holding steady in Lihue and Hanalei as usual, you’ve got to act quickly to get in on Kaua’i’s ongoing real estate bonanza. So if you’re ready to turn those island fantasies into reality, then give Lori and Co. a call today and let’s lock in the optimal conditions for your next home!
PS: If you’re looking to make the transition from renter to owner, we’re here to help! Wai’oli are no strangers to taking the road less traveled, and we’d love to help you get started on making your dreams of homeownership come true. Give us a call and let’s make a plan to get you there together!PPS: Make sure you catch Lori on Letting Go with Alohaover on YouTube! They took a deep dive into her background and current inspirations that we hope you’ll enjoy 🤙