Real Estate

Legal settlements have disrupted how real estate agents are paid. Hawai‘i experts weigh in on what to expect next.

Sales on O‘ahu have fallen nearly 30% so far in 2023, but a reversal is possible next year if mortgage rates decline.

One local insurance agent estimates that the owners associations for as many as 390 buildings have renewed their policies with less than 100% replacement coverage.

The new ceiling will be almost $1.15 million in Hawai‘i. But with 7%-plus interest rates, there will be few takers.

Fannie Mae now says only a 5% down payment is needed to buy a single property with two, three or four homes on it

At issue is the National Association of Realtors position on how the commission for a buyer’s agent is paid, a rule that a federal jury in Missouri has already put in doubt.

Those properties are more likely to sell quickly, and they come with some extra financing options.

In some cases, there are more off-market listings than public ones for homes that start at $20 million, the CEO of Hawaiʻi Life says.

At issue is the commission paid to agents who represent buyers in real estate transactions.

The mortgages come with no down payments, but max out at $977,500, which limits what they can buy in Maui’s expensive housing market.

Hawai‘i Life says 16 West Maui homes have been switched from short-term to long-term rentals since the fire. But most units offered are filled immediately, with remaining long-term rental vacancies in the luxury market only.

In each of those places, prices so far this year are lower than last year.

One Realtor says prices will likely go up fast when interest rates fall, so eager buyers are being encouraged to close on deals now and then try to refinance in a few years at lower rates.

While the number of homes sold in most categories of O‘ahu real estate were flat or down in August, the sales numbers went up for single-family homes priced at $3 million or more and condos starting at $1.5 million.

Oʻahu's percentage drop in refi loans during the second quarter was the second largest in the country, according to a national report.

After the deadly Marco Polo fire of 2017, older Honolulu high rises were required to install sprinkler systems or pass a safety evaluation, but compliance is slow going. Now state legislation asks them to add the costly systems to their reserve studies.