Thursday, May 7, 2009

Hawaii Kai Pending Home Sales Rise with Affordability

In my April market report, I noted that inventory was down and pending sales increased last month. The National Assn. of Realtors reported this week that the trend is nationwide.

The Real Estate Channel states that "pending home sales rose with many first-time buyers taking advantage of historically good housing affordability conditions." Lawrence Yun, NAR chief economist, said it should take a few months for the market to gain momentum. "This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment," he said.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the increase in buying power is quite remarkable. "Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment," he said. "For buyers who've been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today's market are unique."

Certainly our Hawaii Kai market has benefited from the first time buyer programs and low interest rates offered now for mortgage loans. It's still a buyers market and there are wonderful real estate opportunities in our part of East Oahu. Contact me for ideas.

Barbara Abe, Realtor

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