First of all, I would like to say how thankful I am to live in Hawaii, that I have a roof over my head, food to eat, and a career that I can still operate in (although things have changed).
Our team has been busy keeping up with changes in real estate, learning new tools to conduct real estate during this time, and preparing for a post-COVID-19 real estate market. As some of you have heard, real estate has been considered an “essential” business in Hawaii. Other states and markets have taken different stances and at times over the last few weeks, some markets such as both Northern and Southern California had shut down completely for a period of time.
Many buyers and sellers had been making drastic moves over the last few years. With home prices rising and mortgage interest rates falling, many homeowners made moves to upsize or downsize. COVID-19 has since changed the way people live, work, and interact at home. Stay-at-home or shelter-in-place orders as well as lockdowns and curfews might be causing home buyers or homeowners to rethink their future plans. Below are some trends that may affect the buying or selling of real estate going forward.
Potential Market Shifts
Upsizing
The last few years, especially in Hawaii many empty nesters had decided to downsize from large homes to condos. The need for more storage, work at home spaces, and exercise areas may make condo living difficult. For parents with kids at college or even for college professors classes are now online and college students have moved back home with parents for the time being. Some of the past down sizers may be upsizing or re-upsizing again after 2nd thoughts about their future lifestyle post COVID-19.
Multi-Generational Living
Multi-generational living was already a trend along with home buyers looking for single level homes. Multi-generational households may become a new norm with family members being impacted by job employment, college plans changing, retirement planning changes and more. Homeowners that were thinking of bringing in elderly parents into their home in the future may have pushed their plans up sooner due to COVID-19.
Children Returning Home
Mentioned above, a lot of students are returning home to wait out quarantines or shelter-in-place orders. Many young professionals have done the same. With more people working remotely with the advance of technology such as Google Hangouts, Zoom, and Microsoft Teams a lot of young professionals are returning home as well. Many of these students and young professionals might not go back if they left mainland cities and states to come back to Hawaii. If the jobs that they may have left are eliminated, these young professionals may plan to stay home for good.
Floor Plan & Layout Changes
As you can tell, more jobs and classes may go completely remote. Families that have kids taking classes online at home may find that home-schooling is a viable option for them. There may be a premium for homes with spaces for home offices or extra space for children to learn at home.
- Home Office
- Garages
- Storage Closets
- Multiple Bathrooms
- Shift from condos and townhomes to single-family homes
Changes in Households
We have all heard jokes about babies being made during these times and that might cause a spike in couples getting married and buying homes for their future families. On the flip side, stressful times might cause families to disband.
Investment Opportunities
Any situation of uncertainty always offers opportunities to investors. Depending on someone’s situation a homeowner might prioritize decreasing their monthly expenses, selling their home, and getting liquid. The demand for lower priced rental properties might also go up and with many short-term rental properties being affected by quarantines and less travel, some investors may need to sell at a discount.
Preparation is the Key
Our team is having a lot of these conversations with clients. If you would like to schedule a virtual meeting with us to go over your current and future situation, please feel free to use the link below and schedule a virtual consultation.
If you are a homeowner that has been affected by the coronavirus and would like to know your mortgage options, please check out our blog.
