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In 2024, climate change isn’t just an abstract concept; it’s influencing where people choose to call home. A staggering 73% of homebuyers are factoring in climate risks like flooding, wildfires, and extreme temperatures when deciding where to buy. According to the Zillow Consumer Housing Trends Report, the majority of prospective buyers are more climate-conscious than ever before, seeking homes that stand up to the forces of nature. Let's explore the climate risks impacting homebuying decisions and what you should know to make a future-proof investment. Flood Zones: A Priority for Cautious Buyers Flooding tops the list of climate concerns for today's homebuyers, with 43% actively avoiding homes in flood-prone areas. With the increased likelihood of intense storms and heavy rainfall, the long-term financial impact of flood damage is a serious factor for prospective homeowners. FEMA’s online flood maps make it easy to assess whether a property lies in a flood zone. And even if flood insurance isn’t required, it might be a smart safeguard. Wildfire-Prone Regions: Safety in Flames In fire-prone areas, especially across the West, buyers are thinking twice. About 28% of homebuyers now avoid homes in regions with a high wildfire risk. Rising insurance costs and the devastation left by wildfires make these areas less appealing. For those considering homes in wildfire-prone areas, look for properties with fire-resistant materials—like flame-retardant roofing—and consider landscaping with wildfire-resistant plants for an extra layer of protection. Extreme Temperatures Are a Dealbreaker for Many With heatwaves and cold snaps on the rise, extreme temperatures are becoming a real concern. Twenty-six percent of homebuyers are choosing to avoid areas with harsh climates altogether. Energy efficiency is a top priority for these buyers, who want homes that provide comfort and sustainability. Features like modern insulation, energy-efficient windows, and advanced climate control systems make it easier to stay comfortable no matter the weather. Hurricanes and Coastal Risks: A Shifting Dream Living by the beach might sound dreamy, but 25% of buyers are steering clear of hurricane-prone areas. With rising coastal flooding and storm damage risks, buyers are prioritizing safety over the ocean view. For those still keen on coastal living, investing in hurricane-resistant features like impact windows, reinforced doors, and reliable homeowners insurance is essential to balancing dream with reality. Practical Tips for Climate-Conscious Buyers If natural disasters are on your radar as you look for a new home, you’re not alone. Here’s how to balance your dream of a safe, comfortable home with the growing realities of climate risk: Research Local Climate Risks Understand the specific risks in your chosen area, whether it’s flooding, fires, or extreme heat. Tools like FEMA’s flood maps and local government resources are a great starting point to make informed decisions. Invest in Climate-Resilient Features Homes with climate-resistant upgrades—like energy-efficient windows, efficient drainage, and impact-resistant structures—handle environmental challenges far better. These aren’t just nice perks; they can make a big difference in protecting your investment while potentially lowering insurance costs. Factor in Insurance Costs Early Climate risks like flooding or wildfire exposure often mean higher insurance premiums. Getting quotes early in the home search process will give you a clearer picture of total ownership costs, ensuring no unpleasant surprises. Choose a Location with Long-Term Appeal With climate risks set to increase, it’s wise to pick a location that’s likely to remain secure and stable. After all, your home should be a place of peace and security—a solid investment for you and your family. Climate-resilient home shopping doesn’t have to be overwhelming. By prioritizing the risks that matter most to you, you’ll find a safe, comfortable space you’ll be proud to call home for years to come. 

Today, we’re diving deep into a crucial topic that every non-resident buyer and seller of property in Hawaii should know about: HARPTA. Understanding the Hawaii Real Property Tax Act (HARPTA) can save you from surprises at closing, so let’s break it down and make the process a breeze!       What is HARPTA? HARPTA, or the Hawaii Real Property Tax Act, isn’t a tax itself but a withholding requirement. Specifically, if you’re a non-resident selling property in Hawaii, the state requires that 7.25% of the sales price be withheld at closing. The purpose? To ensure that any capital gains taxes are paid before you leave with the proceeds. How Does HARPTA Impact Sellers? If you're selling your property and you’re not a Hawaii resident, HARPTA will affect you. It’s essential to note that the withholding is based on the sales price, not just your profit. So, for example, if your property sells for $800,000, $58,000 will be withheld, regardless of how much profit you’ve made. However, the good news is that this withheld amount isn’t gone forever. If your actual capital gains tax is less than the withheld amount, you can apply for a refund! Can You Reduce or Eliminate HARPTA Withholding? Yes, there are ways to reduce or eliminate the withholding before you even file your taxes. Here’s how: Form N-288C: Filing this form can help you get a refund of the withheld amount before you file your tax return. This is particularly useful if the amount withheld exceeds your actual tax liability. Form N-289: If you meet certain conditions, such as having used the property as your primary residence for at least two years before the sale, you may be able to apply for an exemption from HARPTA. What Buyers Need to Know About HARPTA As a buyer, you’re not off the hook! HARPTA directly involves you because you’re responsible for ensuring the withholding is done and sent to the state. This might sound overwhelming, but don’t worry—your title and escrow company typically handles the process for you. However, it’s essential to be aware of HARPTA’s implications, especially if you’re buying from a non-resident seller. If you don’t ensure the withholding happens, you could potentially be on the hook for unpaid taxes. Also, consider the future: If you’re a non-resident buyer now but might become a non-resident seller down the line, HARPTA will come into play when you sell the property. Why Does Hawaii Have HARPTA? HARPTA ensures that the state of Hawaii collects its due taxes from non-residents selling property within the state. It prevents non-resident sellers from avoiding their tax obligations and ensures that the proper amount of capital gains tax is paid to the state. In some cases, this may result in over-withholding, but again, the seller can apply for a refund if the withholding exceeds their tax liability. Final Thoughts on HARPTA: What You Need to Remember HARPTA may seem complex, but with a little knowledge and the right forms, it’s manageable. Whether you're buying or selling in Hawaii, understanding HARPTA is crucial to ensuring that the real estate process goes smoothly and there are no surprises at closing. Take Action: Simplify Your Hawaii Real Estate Experience Whether you’re a non-resident seller looking to understand HARPTA or a buyer navigating the beautiful Big Island real estate market, we're here to help! Contact us today for expert guidance on buying or selling property in Hawaii. We’ll walk you through HARPTA, help you prepare the right forms, and make your real estate journey as smooth as the island breezes. If you have any questions about HARPTA or Hawaii real estate, don’t hesitate to reach out! Leave a comment below, or click here to schedule a consultation with our team. Aloha! 

No matter how many elections you’ve witnessed, every November feels like it’s full of surprises. The big question looms: should you make a move in the housing market, or should you hold off until the election dust settles? Historically, presidential elections have only a minor and temporary impact on the housing market. Still, it’s natural to wonder how this year’s election might influence your decision to buy or sell a home. Here’s a quick overview of what to expect, based on patterns from past election years. How Do Elections Affect the Housing Market? Home Sales During election years, November usually sees a slight dip in U.S. home sales. According to Ali Wolf, Chief Economist at Zonda, this slowdown isn’t drastic, but it’s noticeable. The reason? Uncertainty. People tend to hesitate when making big decisions, like buying or selling a home, if they believe the election could impact their finances or lifestyle choices. But here’s the good news: this dip is temporary. Home sales typically bounce back in December and continue to rise in the following year. In fact, data from the U.S. Department of Housing and Urban Development (HUD) and the National Association of Realtors® (NAR) shows that after nine of the last 11 presidential elections, home sales increased the next year. **Home Prices** When it comes to home prices, the story gets interesting. According to Bankrate, home price appreciation has often outpaced that of non-election years. A detailed analysis of Case-Shiller data reveals that since 1987, home prices have risen an average of 4.84% during election years, compared to 4.44% during non-election years. On the surface, this might make it seem like election years are a boon for the housing market. But the reality is more nuanced. Let’s break it down with some historical data: - 2008: The housing market plummeted, with home values dropping by 12%. This wasn’t due to election jitters but rather the bursting of the housing bubble and a collapsing global economy.- 2021: The best year for home price growth since 1987, with values soaring 18.9% during the pandemic housing boom. Again, this had little to do with the election and everything to do with extraordinary economic conditions. Mortgage Rates Mortgage rates are a crucial factor because they determine your monthly payments when buying a home. So, what happens to mortgage rates during an election year? According to Freddie Mac, in eight of the last 11 presidential elections, mortgage rates declined from July to November. Looking ahead to the aftermath of this year’s election, most housing market forecasts suggest a slight easing of mortgage rates through the end of 2024 and into 2025. If these predictions hold, we could see a continuation of the trend where interest rates dip before the election and keep falling afterward. Lower rates mean lower monthly payments, but they also attract more buyers into the market. So, if you’re waiting for rates to drop below 6%, be prepared for increased competition, which could drive up home prices and reduce the likelihood of negotiating concessions. Final Thoughts Presidential candidates often make big promises about their economic plans, but when it comes to the housing market, their influence is usually minimal. Despite what they might claim, the housing market tends to follow its own rhythm, guided more by broader economic factors than by who’s sitting in the Oval Office. The housing market can be confusing, especially during an election year. But with the right information and a focus on local data, you can navigate it confidently. If you’re looking for personalized insights into your home or neighborhood, feel free to reach out. I’m here to help you make informed decisions, no matter what November has in store.