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Industry and Societal Impacts Due to COVID

Engage Team • Aug 28, 2020

Working and living through a pandemic is new for all of us. In Hawaii, we are still navigating our new normal while planning for what lies ahead. COVID has impacted our own business as well as the lives of our agents, clients and partners. We asked our team for their perspectives on how they see COVID changing our way of life and the way the real estate industry may be affected.

COVID & Real Estate
  • We’ll see more referral-based transactions whether it be buying, selling or renting of any products or properties. People will be cautious of the interaction they have with others so they will only work with those that they trust and all other transactions will be done strictly online. 
  • We will see a large increase in business closures and ultimately home foreclosures and short sales in the near future. This will be an unfortunate set of circumstances for some and a windfall for others. Realtors will be in high demand!
  • The 10-year real estate cycle was way overdue, and we will likely see similar effects as we did during, and after, 2007-2009, but on a much larger and longer scale. It could be like the great depression, but in modern times.  
  • It will be interesting to see how the commercial real estate market adjusts as many retailers close their doors and the demand for office space drops.
  • More owners and tenants will be more open to helping each other and will be more communicative, even when rent is sometimes a point of contention.
  • People may be downsizing their lives to prepare for the uncertainty of future income. Moving from Single Family Homes to Townhouses and Townhouses to Apartments.
COVID & Business
  • Business will be dependent on virtual meetings. We will grow accustomed to online meetings while meeting in person will be a thing of the past.
  • Many companies will realize the cost savings of having employees work from home as well as increased employee satisfaction with people having more flexibility in their day for family, hobbies, rest, etc. 
  • It’s possible that pay will become based on productivity and not just "time clocked in." This is already true for the "gig" sector. I think it may become true at large, especially if more are working from home. I think benefits will need to change to meet the work at home needs - computers, ink, paper, supplies, secure file sharing, etc. 
  • For any business to realize competitive advantages, it should be able to adapt and evolve to the changing trends for generations to come.
  • The convenience and need for technology will rise, and most will continue using these types of businesses/services even after the pandemic passes because of the convenience, quality, and necessity for them.  
  • Business owners will start looking deeper at succession plans, and adjusting life and business choices around them. Those with influence and experience on the front lines will shift to creating ways to help others through teaching, writing, coaching, speaking, mentoring, and utilizing online and social media tools to do so.
COVID & Communication/Technology
  • Use of communication apps (Zoom, Skype, etc) in order to be connected now, will become a more comfortable, convenient, safe, and effective means to remain connected for both work and family/friends. This opens many doors for entrepreneurship to thrive. 
  • People will be using technology to engage with businesses, and perform their jobs. This will accelerate the creation of new programs and technology to accommodate this fundamental shift.
  • There is an opportunity for schools to move to providing curriculum and mentoring parents to educate their children, in addition to providing supplemental distance learning classes and in-person classes.
  • Online shopping, its technology, and its abilities will continue to advance with greater demand than ever before. 

By Engage Team 15 Mar, 2022
From the Big Island to Oʻahu One of the benefits of living in the island archipelago of Hawaiʻi is that the other Hawaiian islands are a short flight away. It was during a spontaneous visit to Oʻahu from the Big Island of Hawaiʻi – where we lived for 6 years – that my partner and I got the idea to switch islands. Although each of the Hawaiian islands has unique merits, we were ready to experience Oʻahu’s convenience, plentiful hiking trails and beaches, and diverse economic opportunities. After landing a job offer based in downtown Honolulu, our relocation planning began. Since we were still largely unfamiliar with Oʻahu, we tailored our apartment search to a few factors, including: proximity to work; walkability to groceries and other necessities; and amenities like air conditioning, a pool, and a gym. Of course, budget was a factor as well, and we set our price range accordingly. Choosing Kakaʻako While the apartment criteria narrowed our search to three Honolulu neighborhoods – Waikiki, Ala Moana, and Kakaʻako – we focused on Kakaʻako because of its newer buildings and walkability to shops and dining. While living in a downtown Airbnb, we cruised sites like HICentral , Zillow , and Craigslist to find leads, and looked at several apartments before securing a 1-bedroom in the recently completed Keauhou Place tower. In addition to our unit having an incredible view overlooking downtown and the harbor, it came with shared amenities like covered parking, a pool, gym, and barbecue grills. As well, we enjoyed access to its ground-level pedestrian mall, which offered a natural grocery store, spa, and spots for dining and takeout – not to mention a short jaunt to even more options at SALT and Ohana Hale Marketplace . Aside from walkability, the location served as a central jumping off point for weekend adventures around the island. Change of Scenery Two years, a pandemic, and one job transition later, we were ready for another change of scenery. Since I switched from working in-person to working remotely, we no longer needed to live close to downtown, and began exploring the idea of moving to Oʻahu’s east side, where we would be closer to some of our favorite hikes and beaches. While the search process was similar, the inventory in our budget range was different, and it took a bit longer to find a suitable home. As opposed to the ample selection of apartment and condo listings in Honolulu’s urban core, the east side neighborhoods of Kaneohe, Kailua, and Waimanalo offered mostly ADU’s (additional dwelling units) or single family homes converted into multiple rentals units – sometimes lacking the privacy or amenities we needed. It took about 3 months to find our ideal rental home in Kailua, a similar 1-bedroom condo within a comfortable walking distance to town and the beach. It took a lot of patience, because the inventory was more limited; but, luckily we had flexibility to keep searching until we found our match.  Urban v. Suburban: Which to Choose? Ultimately, I am glad we got the experience of living in both Honolulu and Kailua. Particularly, the Kakaʻako neighborhood, with its abundant street art, well-maintained parks, and diverse shops and dining options, is a great place to get a feel for Oʻahu’s urban core. On the other hand, Kailua has an intimate, beachy feel, which could be a better fit if you can work remotely – and avoid the driving commute into “town” (local shorthand for Honolulu). Either way, pre-determining your unique home, budget, timing, and lifestyle criteria can help to narrow your search and point you in the right direction. About the Author Ali Slous is the founder of Perspective Media , an Oʻahu-based creative agency whose mission is to empower entrepreneurs and small businesses to channel creativity in ways that generate both professional success and personal satisfaction. When she is not creating Perspective Media, Ali enjoys access to the incredible nature Hawaiʻi has to offer. Resources HICentral: https://www.hicentral.com/ Zillow: https://www.zillow.com/honolulu-hi/?utm_content=319854744|1301821912900950|kwd-81363927204438:loc-190|81363895177301|&utm_campaign=zbw_br_natgeo_usa_x_nat_cities_e_b_1&semQue=zillow%20honolulu&msclkid=330d4f9cfa6b19b9b07d2db5ba061625 Craigslist: https://honolulu.craigslist.org/search/hhh SALT: https://saltatkakaako.com/ Hale Ohana Marketplace: https://www.ohmhawaii.com/ Perspective Media: https://perspectivemediahawaii.com/
By Jacqueline Little 16 Feb, 2022
A new year is upon us, and I must say it feels familiar, yet unpredictable. What I mean by that is, although we’re still dealing with the pandemic, the real estate market is still very dynamic. Mortgage rates dropped to record lows for much of last year, while home values and sales peaked to record highs. Where does it go from here? To say that there will be a housing market cool down is too drastic. Steady buyer demand and low inventory will continue to drive up prices. My insight for 2022 aligns with what most are predicting for the housing market’s future - everything will be high. Demand, prices, home appreciation rates, and eventually home inventory and interest rates will rise too. While some trends from 2021 will continue into the new year, some things will change. This year will be defined as a steady year of (slow) growth. The market will no doubt be in the favor of the sellers for now, but things will start to swing the other way. Because the real estate market is affected by current events, fluctuations are inevitable. If you’re looking to buy, pay attention to interest rates and always be in tune with your own personal finances. If you’re in a position to sell this year, it wouldn’t be a bad idea. The smaller housing inventory fares to your advantage because low inventory creates competition among buyers, essentially increasing your property’s value. If you’re a seller, know that there are options for selling. Whether it’s your first home sale or your fifth, talking to a real estate agent will help you explore your options so you can market your home to a wide range of potential buyers and get you top dollar for it. If you’re a buyer, the same advice rings true here. Talk to a real estate agent who can help you navigate this active housing market and help you find the right situation for you to act on. As always, Royal Realty is here for you and ready to take on 2022 with you!
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