The 3 Factors That Affect Home Affordability

Home Affordability, Particularly in Hawaii Real Estate Given Our Standard of Living is a Major Factor for Many of Our Clients

1. Mortgage rates shot up to over 7% last year, causing many buyers to put their plans on hold. But things are looking different today as rates are starting to come down. Hawaii real estate is so unique that it creates a whole new climate for mortgage rates and the best way to get the best advice is to get with an experienced real estate agent, which we are always more than happy to help out with!
2. The second big factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. Parts of the country and globally may see price increases and price declines but here in Hawaii real estate, inventory and location remain the large factors that a client would need to consider.
3. When a client thinks about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many buyers have renewed opportunity in the market. While affordability hurdles are not completely going away this year, based on current trends and projections, 2023 should bring some sense of relief to homebuyers who have faced growing challenges.