As many know, the year of 2020 was a frenzy for the national real estate market with the bidding wars and the level of inventory available. Recently, Hawaii real estate’s market did see dips in inventory and the market did slow during September 2022 when mortgage rates did increase. Thankfully, economists locally and nationally are predicting the 2023 year will see a turnaround in the real estate market due to mortgage rates lowering.
The mortgage market itself throughout Hawaii real estate can predict a lot due to potential buyers being able to afford a priced property that they would technically be paying a higher price on their mortgage for because more interest is charged. Math percentages aside, the lower mortgage rates are the better pricing a potential buyer can enjoy for the same property. Home appreciation values have slowed since the 2020 market increases which is incredible news for home buyers and those seeking out property because affordability is a major factor for so many of our clients.
In addition to the mortgage rates steadily lowering, economists predict this is incredible for inflation which affects household income rates for potential buyers. Many buyers come to perform property searches within the Hawaii real estate market and we always encourage pre-approval for our clients so we can ensure every HDG agent working with a client knows the market category and price-point to look for, saving our clients time and money.
Lower mortgage rates are great for the overall economy and within the Hawaii real estate market, this creates a better market for every potential buyer. We encourage you should you want to begin your Hawaii real estate goals to reach out to one of our incredible HDG agents to begin your property search for you!