B4 • Friday, October 6, 2023
thegardenisland.com
THE GARDEN ISLAND
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Julie Black, Principal Broker & Owner (808) 652-6174 with daughter Kela Caspillo, Realtor Broker (808) 652-6173 kauaidreams.com
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Kapa‘a
5515 Kuamo‘o Road A 3 bedroom 2 bath home located in Wailua Homesteads surrounded by mountains and waterfalls. This house reminds me of old Hawai‘i but it’s actually quite modern, light and practical. 1080 sq. ft. of original house and 386 sq. ft. of enclosed lanai. A level yard with hedges gives you privacy. MLS # 668940; $855,000. Call Julie Black, RB-14203 (808) 652-6174 or Kela Caspillo, RB-23365 (808) 652-6173 Kauai Dreams Realty, to see this property.
WHERE ARE THE HOMES?
Glaring need for housing construction underlined by Century 21 CEO
elevated for years to make a dent in the housing shortage. Does that mean the housing market will be limited by a low level of homes on the market for the foreseeable future? Alex Veiga A: If there’s not a lot of AP BUSINESS WRITER movement in rates, where a move-up buyer can see getting LOS ANGELES — The highest into a bigger home, a more dream mortgage rates in more than two home, something that is going to decades are keeping many get them more bang for their prospective homebuyers out of buck, then you’re probably going the market and discouraging to see this inventory issue homeowners who locked in ultrapersist. And we may continue to low rates from listing their home see somewhere along the lines of for sale. plus or minus 4 million existing The dearth of available homes sold, year over year, properties is propping up prices PETER MORGAN / ASSOCIATED PRESS FILE versus the normal 5 to 5.5 even as sales of previously (million) that we’ve seen over the occupied U.S. homes have A sign announces newly built homes in Sudbury, Ma., on last decade or so. slumped 21 percent through the March 12, 2023. Q: Home prices skyrocketed first eight months of this year. during the pandemic and when so many people lost their this the new normal or should The combination of elevated haven’t eased significantly homes to foreclosure and you buyers hold out for rates to rates and low home inventory despite the housing downturn overbuilt, what’s happened this ease? has worsened the affordability last decade is anywhere from 3.5 that began last year. Are you A: You’ve seen the fastest crunch. Where does that leave optimistic more first-time buyers run-up in mortgage rates that we million to 5-plus million homes homebuyers, given that some will be able to afford to buy a that we’re short. We’re kind of ever have in history. And at the economists project that the home in the next few years? going into a macro supply and same time, I think we’ve got to average rate on a 30-year A: I think you have to look at demand issue, which is you’ve recognize that they’re still right mortgage is unlikely to ease on par with what is probably the got the largest generations in U.S. just affordability in general. It below 7 percent before next takes about nine years for the history — millennials and Gen-Z 50-year average for a mortgage year? current generation to save for — entering their main rate in this country. But I don’t Mike Miedler, CEO of real that 10 percent down (payment). homebuying years, and we just see anytime soon we’re going to estate brokerage franchisor When boomers were doing it in don’t have enough property to be going back to 2 percent or 3 Century 21, recently spoke to sell and for people to move into. the 80s and 90s, it only took you percent mortgage rates. I think The Associated Press about the about five years. And so I think (Homebuilders) are developing we’re probably somewhere in challenges homebuyers face. He that’s why you’re seeing more this 5 percent to 7 percent range more of what I would call highsays the impact high rates are and more people having to go to end properties, but not enough having on affordability and home for the foreseeable future. the ‘bank of mom and dad’ to creative first-time homebuyer Q: The national home sales inventory underscores the need borrow. But that’s also why situation properties. And I think inventory has been inching for construction of more you’re seeing a lot of drive into affordable homes. The interview higher, but remains very limited that’s really the solve to all of more affordable markets. People this. at around 1.1 million homes. has been edited for length and are moving to places where Q: After years of What’s the solution? clarity: underbuilding, the pace of new obviously there are jobs, but A: If you look over the Great Q: With the average rate on a (also) inventory that they can home construction would need Recession from a real estate 30-year mortgage hovering afford. to ramp up sharply and remain above 7 percent since August, is perspective here in 2008-12,
Hawaiiana Management Company, Ltd. Serving Kauai’s Condo & Community Associations with award-winning service
Long-term U.S. mortgage rate surges to 7.49 percent
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awaiiana currently serves over 60 residential and commercial associations on the Island of Kauai. Kauai native Sunshine Ruiz Hatto serves as Hawaiiana’s Vice President of Kauai Operations from its office at the Kukui Grove Executive Center in Lihue.
ASSOCIATED PRESS LOS ANGELES — The cost of financing a home surged again this week as the average long-term U.S. mortgage rate climbed to its highest level since December 2000, further dimming the affordability outlook for many would-be homebuyers. The average rate on the benchmark 30-year home loan rose to 7.49 percent from 7.31 percent last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.66 percent. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loan, also increased. The average rate rose to 6.78 percent from 6.72 percent last week. A year ago, it averaged 5.90 percent, Freddie Mac said. High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. They also discourage homeowners who locked in rock-bottom rates two years ago from selling. The average rate on a 30-year mortgage is now more than double what it was two years ago, when it was just 2.99 percent. The combination of elevated rates and low home inventory has worsened the affordability crunch by keeping home prices near alltime highs even as sales of previously occupied U.S. homes have fallen 21 percent through the first eight months of this year versus the same stretch in 2022. Home loan applications fell to the lowest level since 1995 last week, according to the Mortgage Bankers Association. At the same time, the median monthly payment listed on home loan applications has been rising. It was $2,170 in August, up 18 percent from a year earlier.
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Sunshine Ruiz Hatto Vice President Kauai Operations
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Hawaiiana’s Kauai Properties: Alihi Lani Alii Kai at Hanalei Alii Kai II Aliomanu Estates Apopo Hale Emmalani Court Halaulani Condominium Hale Honu Halelani Village at Puhi Halemalu at Puhi Hanalei Bay Villas Hooluana Condo at Kohea Loa Hookena at Puhi Kahala at Poipu Kai Ka‘iulani of Princeville Kakela Makai Oceanview Kalaheo Pali Kai Kalihiwai Ridge Kamahana Kauai Beach Resort
Kauai Beach Resort Association Kawaihau Sports Villa K.G. Enterprises Condominium Kiahuna Plantation AOBO Kohea Loa Master Association Koloa Garden Apartments Kuhio Shores at Poipu Kukui‘ula Kulana Lae Nani Lihue Townhouse Makanui Manualoha Marriott’s Kauai Resort and Beach Club AOAO Nawiliwili Estates Paradise Court Pali Ke Kua Paliuli Pikake
Pili Mai at Poipu Plantation at Princeville Poipu Crater Poipu Kai Association Poipu Kai Racquet Club Poipu Kai Water Reclamation Poipu Kapili Poipu Sands Princeville II Community Association Princeville II Community Association - Queen Emma Bluff Princeville Makai Ranch at Halele‘a Princeville Paniolo
Princeville Sealodge I Puamana Puhi Industrial Park Pu‘u Po‘a Regency at Poipu Kai Regency Hule‘ia Regency Villas at Poipu Kai Sandpiper Village I The Villas at Poipu Kai Villas at Puali Villas of Kamali’i Villas on the Prince Waikomo Stream Villas Wailua Bay View Waipouli Beach Resort
For more information about Hawaiiana’s services, contact Sunshine Ruiz Hatto at 792-0515 or email sunshine@hmcmgt.com.