How Unaffordable are Homes Right Now?
Home values are showing stability in our current market. However, affordability remains a challenge for potential buyers due to rising mortgage costs. Buyers need to understand the local market, including the taxes, cost-of-living, job market, and housing situations here on the Big Island.
In Waikoloa Village, the average home price is around $900,000. Breaking it down, a buyer would face a monthly payment of $5,640 with this mortgage (per a local lender). This requires an income of at least $140,000 per year with no debt and 20% down. Keep in mind that these figures represent current market conditions and may change. The limited inventory we’re seeing creates a favorable market for sellers, with only 25 residential listings and 6 condos available for sale in the Village.*
Inventory has been impacted by the current market as sellers are reluctant to trade their current 3% mortgage rate for an average 8% mortgage rate on a new purchase. The Covid craze of fast-moving listings and bidding wars is becoming a distant memory as the market shifts back towards the pacing we had pre-Covid.
Navigating the complexities of today’s market takes expertise. Whether you’re looking to buy or sell, it is necessary to partner with an experienced local agent who can walk through various scenarios with you and provide insight as you weigh your options. If you have questions about the current market or your specific situation, please contact me to discuss in more detail.
*Please reach out for current info as this is subject to change.
REALTOR BROKER, RB-22172
catherine@hapunarealty.com
808.987.4307
