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Have You Set Your Real Estate Goals for the New Year?

The start of a new year is a good time to take stock of your financial goals, including your real estate holdings. 

Market conditions in 2021 will present a variety of opportunities for first-time homeowners, move-up homeowners and real estate investors. Having a well-thought-out plan of action will be key to realizing your real estate goals this year.

Whether you are a renter, homeowner or investor, now is the time to evaluate your current real estate situation and make your plan for 2021.

Still renting? It's time to escape the rental trap

If you’ve been delaying homeownership because you don’t think that you will be able to find a home in your price range, you won’t want to put it off any longer in 2021, as rents could rise in the coming year.

Single-family home inventory is at record lows in most Oahu neighborhoods, which means there will be more competition from other buyers as the year progresses. Condominium inventory—while still ample—is also falling, causing competition to heat up.

Interest rates, which have been at record lows for most of the past year, gave homebuyers a much-needed boost in 2020. Rates will likely remain low in 2021, as the Fed attempts to simulate economic recovery from the impact of COVID-19. Homebuyers should act while buying power is still strong.

Remember, the best time to own a home is always as soon as you are able. You may be closer than you think. With your pre-approval letter in hand and a knowledgeable Realtor® at your side, your goal of homeownership in 2021 will be well within reach.

Tip: Use our Rent Accumulation Calculator to see how much money you're spending on rent that could be going toward a mortgage instead.

Current homeowner? Trade up to a new home

With rising housing prices on Oahu, now is the time to leverage the equity in your current home to move into a home that can accommodate a growing family, minimize commute time or free you from tedious home maintenance.

Current condominium owners looking to trade up to a newer, larger or more centrally located condo or townhome in the New Year will find fewer options than in recent years, although inventory is still plentiful within Waikiki and Honolulu's urban core.

Homeowners looking to trade up to a single-family home, however, will find fewer choices than a year ago, as Oahu home inventory is shrinking in most neighborhoods.

The greatest decrease in single-family home inventory is in the entry-level price range. If you think that you don’t have enough home equity to trade up, you might be surprised to learn the value of your home may be more than you think. 

Tip: Use the Locations Home Valuator to get an instant, free home valuation.

Invest in your future

If you already own real estate investments—whether in Hawaii or somewhere else—January is a good time to examine your portfolio and assess how your investments are performing. If you have an underperforming property (or properties), or one that may require costly maintenance sooner rather than later, current market conditions are ripe to exchange into a property that will command a greater return, has greater potential for appreciation, or won’t require expensive repairs or fees.

If you are a current homeowner and you’ve been thinking about purchasing your first investment property, 2021 will be a great time to turn that goal into reality! Real estate investment properties can provide you with additional monthly income that can used to help children with educational needs or plan for your retirement. Whether you are a seasoned investor or new to the game, you’ll want to work with a Realtor® who can help you to identify an investment property that will best meet your needs. 

Tip: Consider a 1031 exchange to grow your real estate investment portfolio.

As with any New Year’s resolution, putting pen to paper will help you to realize your real estate goals sooner. So, before you pop that bubbly, call your Realtor® to map out your 2021 real estate action plan. You’ll be glad you did!