Hawaii Veterans Resource

12/03/2020

Why the VA loan? Here's why! 🏡🤩 What else would you like to know about the VA loan, we have the answers

10/27/2020

If you are hearing a cash register go "ka-ching", that is your home appreciating and making you some money. Two reports, the FHFA report below and the Case Schiller home price index, show that homes appreciated in August by more than 1%, yet another month in a row where homes appreciated significantly.

The catalyst for these gains are low rates and low inventory. Now that Congress has given our country the Heisman and chosen to not do a stimulus package until after the election, we can expect rates to stay low until after the election. Even after the election, I would guess they will remain below 3%.

Take into account that inventory will remain historically low and we can expect homes to keep appreciating for the next several months.

Biggest risk: Before the end of the year, we will need to have a stimulus package and action taken to stem the tsunami of foreclosures and evictions that will come once the moratorium is lifted in January.

2nd Biggest risk: COVID tsunami as we head into the winter months that shuts down our economy again. In Mar and Apr, our economy shutdown had significant negative effects on housing. Rates were low but, if not for the Fed pumping $ into mortgage backed securities, we would have effectively shut down the lending systems.

I think both risks will be mitigated, however and we will continue to see housing lead our economic recovery. But, that is just my positive nature. :)

The FHFA (Federal Housing Finance Agency) released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts. Home prices rose 1.5% in August and are up 8.0% year over year, which is even stronger than the 6.5% in the previous report and the....

08/28/2020

Larry's Mortgage Market Minute
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Unemployment, Economy, Inflation
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Lockdown, COVID 19
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Housing Market in Oahu
Link for free "virtual" VA Home Loan Seminar this Saturday, 1000 HST -->

I'm an experienced Loan Officer offering many different loan programs. I can help you find the loan that will fit your needs. Contact me today!

08/25/2020

Today was a banner day for housing reports! 3 separate reports all highlight how incredibly strong the housing market is. This is the FHFA House Price Index and it highlights the appreciation on conforming homes (homes sold below $765K in HI, typically below $500K in the mainland). For the month of June, housing prices rose .9% between May and June. If that continues, homes will appreciate double digits within the next 12 months. Can it happen? Yes it can. I would venture to say the next 2-3 months will show the same level of appreciation or more.

Is now the time to buy? In Hawaii, it most probably is. Housing prices are on an elevator going up and while they may come back down, they will not come back down to levels below where they are at now. The law of supply and demand is nowhere more prevalent than in Hawaii. Ask any frustrated home shopper right now. Up to 20 offers on some homes. Appraisal escalation clauses.

You need a good realtor who can negotiate and make the best offer possible and a lender who is respected and whose preapproval carries weight. They could be the difference in getting your offer accepted or going into base housing and giving your tax free "Buy A House"(BAH) away. Call me to discuss your plans for housing in Hawaii. 808-348-5287

The FHFA (Federal Housing Finance Agency) released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts. Home prices rose 0.9% in June and are up 5.7% year over year, which is a big improvement from the 4.9% in the previous report.

08/22/2020

The last time existing home sales were this high, I was not even born! 24.7% increase from June, a month that was 21% more than May. As you can see from the graph, we are past the pandemic negative impact on housing. This housing market is hot, hot, hot.

On the pricing front, the median home price across the nation increased 8.5% year over year! The housing market is the strength of the economy, right now. It's impact is felt in employment as the pace of new home sales is keeping contractors and builders in business, construction materials are doubling in price, and various housing service providers and stores are seeing increased revenue.

Should you invest in real estate and buy a home with prices so high and is buying a home affordable in HI? Well, homes are more affordable now than ever...because rates have never been lower. Buyers have $50-150K more buying power now than they did last year, without an increase in their own earnings. So, yes, homes are affordable. Proof -- homes are coming off the market as quick as they are coming on. Homes are getting 10, 20, 20+ offers, so yes, homes are affordable.

If you are wondering if you can afford to buy a home, call me, DM me, text me...easy day! At least know the facts before you make the decision ot rent and pay someone elses mortgage or worse, go into base housing. 808-348-5287

Existing Home Sales, which measures closings on existing homes, were up 25% in July. Because these are closings, it likely represents buyers shopping for homes in May and June. This was the largest one month jump ever and comes off the heels of a strong previous report up 20%. Inventory remained tig...

08/20/2020

Initial jobless claims dropped below 1M two weeks ago. This week, they are above 1M again. While those continuing to be unemployed went down last week, we need to see how this trends moving forward. A restaurant that I went to last week and absolutely loved, The Charthouse, closed yesterday. When you equate the numbers to what you see around you, the impact is noticeable. Why I see this number getting worse? 1) Congress failing in their job to provide more stimulus (CARES Act, PPP...); 2) Our inability to be responsible IRT COVID-19.

What does this mean for housing? In the near term nothing. Inventory continues to be low. Rates will remain low too. In the long term, significant and not just home purchases but rentals. When we stop kicking the can on eviction and foreclosure moratoriums, people will find themselves homeless or in foreclosure...until jobs come back. See the relationship to unemployment? Our unemployment numbers in HI are significantly higher than in other states, as well. :(

There are things you can control and you cannot. You cannot control unemployment numbers and you cannot control the virus. You can be in a position to take advantage of low interest rates and affordable home prices (yes, they are affordable...otherwise there would not be 27 offers on individual homes), and you can be socially responsible WRT wearing a mask.

Stay safe!

Initial Jobless Claims for last week was released, showing 1.1M individuals filed for unemployment benefits for the first time. This was 135k more than last week, but Continuing claims, or those continuing to receive benefits, improved by 636k to 14.8M.

07/29/2020

Properly managing your debt level is one of the keys to financial success. Whether you are a multi-million dollar professional or a blue-collar worker, successful debt management is your path to financial freedom. If you are struggling to maintain or reduce your debt, you can get your debt payments back to a manageable level with these steps. This article offers some helpful advice on how to not only manage, but even reduce your debt payments. And right now, smaller payments can make a world of difference!

If your debt looks like a mountain and your budget feels like a shovel, these five strategies will work in your favor.