Traditionally in real estate, spring and summer are the best months to buy or sell a home, with May starting the peak of the selling season. Factors affecting the May boom include warmer temperatures, kids being out of school, and the longer days. But there are other considerations to think about, such as finances, moving costs or life changes. You should also take into account where we are in the real estate market.
Local Market Trends
Low inventory and high demand is keeping us in a seller’s market on Maui this winter.
However, even though there are typically fewer homes on the market during the winter months, you may also find you have less competition when putting in an offer. If you have some flexibility about when you buy, seasonal trends can work to your advantage.
Interest rates are expected to increase over the next year which could impact the cost of your new home and further temper demand.
Your personal financial situation is the first thing to consider. Several questions you should ask yourself is whether you can afford the extra costs associated with homeownership on Maui, if your credit score where it should be to qualify for the loan you need, if you have enough money saved for the down payment.
Moving costs should also take priority in planning. A local move is fairly easy to work out. But if you are moving from off island, a couple could spend a minimum of $15,000 to move to Maui. Factor in flights, hotel and a temporary rental and deposit, car shipping, food and incidentals. The decision to buy a home is a major one, and all costs associated with it, or you should consider if you have necessary dough to move and live while you are getting established.
Major Life Changes
Life is unpredictable and can be difficult to plan. You may have decided to buy a home, but things can change and upset your plans. Thinking about life changes outside of the move are important. Life events that could alter your decision to buy a house include:
- Is a baby on the way, or part of your near future? If so, will you need more room? Or are you downsizing for retirement?
- Are you taking a new job? Will you need to move soon to be closer to your job? And are you looking for a temporary home or will it be a permanent change?
- What are the reasons you are relocating – to find better schooling options for the kids, or to be closer to an ailing parent?
Finding your home
If you are contemplating moving, now is definitely the time to talk to a Destination Maui Realty agent. They are knowledgeable about the market, including buying over winter.