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Welcome Back,

Hi there, I hope you are doing great this week and are having a very productive week. Today we will be diving into another real estate market as well as some market details. Enjoy!

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Daily News Updates:

Market Movements:

• U.S. Stock Futures Rebound: Following a recent selloff, U.S. stock futures showed signs of recovery on March 12, with Nasdaq futures up nearly 1%, and S&P 500 and Dow Jones futures increasing by 0.9% and 0.6%, respectively. Investors are closely monitoring the latest Consumer Price Index (CPI) data, which is anticipated to reveal a slight slowdown in inflation for February, projected at an annual rate of 2.9%.

Trade Tensions Escalate:

• Implementation of U.S. Tariffs: The U.S. has enforced a 25% tariff on steel and aluminum imports, aiming to protect domestic industries. In retaliation, the **European Union plans to impose tariffs on approximately €26 billion worth of U.S. goods starting in April, targeting products such as bourbon whiskey, boats, and motorcycles. ​

• Canada's Response: Canada has announced reciprocal tariffs on $30 billion of U.S. imports, escalating the trade dispute. President Trump's earlier threats to double tariffs on Canadian metals were temporarily resolved after negotiations, but tensions remain high.

Corporate Developments:

• Intel's Strategic Move: **Intel's stock surged by 8% following reports of a potential joint venture with TSMC to take over Intel's foundry division. This collaboration aims to enhance Intel's manufacturing capabilities and competitiveness in the semiconductor industry.

• Adobe's Financial Outlook: Adobe is anticipated to report revenue and profit growth for Q1, with adjusted earnings per share expected to rise 11% year-over-year to $4.97, on revenues of $5.66 billion. This growth is driven by the success of its AI product offerings.

Airline Industry Challenges:

• Reduced Financial Expectations: Major U.S. airlines, including Southwest, American, and Delta, have lowered their quarterly financial forecasts due to declining customer demand. Factors contributing to this downturn include higher-than-expected completion factors, reduced government travel, and external events such as California wildfires. For instance, Southwest now forecasts a revenue increase of 2-4% per available seat mile, down from 5-7%.

Global Economic Indicators:

• Euro Strengthens Amid Ceasefire Proposal: The euro reached a five-month high following Ukraine's willingness to accept a U.S.-proposed month-long ceasefire. This development has led to optimism in European markets, with equity futures climbing and the FTSE futures rising. The ceasefire proposal has also influenced currency markets, with the Russian rouble appreciating to a seven-month high.

Market Snapshot:

Honolulu, Hawaii

The Honolulu real estate market has experienced notable changes recently. As of February 2025, the median home price for single-family homes reached a record high of $1,185,000, marking a 10.2% increase from February 2024. This surpasses the previous record of $1,153,500 set in May 2022. However, the market shows signs of balancing, with fewer homes selling above the asking price compared to previous years.

• Median Home Price: $1,185,000

• Year-over-Year Price Growth: 10.2%​

• Active Listings: Data indicates a balanced market with steady inventory levels

Deal Of The Day:

Multifamily Property in Kakaʻako, Honolulu

• Price: $2,500,000​

• Units: 10 (Each 2-Bed, 1-Bath)​

• Monthly Rental Income: Approximately $25,000​

• Cap Rate: 7.2%​

This multifamily property in the vibrant Kakaʻako neighborhood offers a compelling investment opportunity. Each unit rents for around $2,500 per month, totaling an annual rental income of $300,000. Given its proximity to downtown Honolulu and ongoing developments like Ward Village, the area is poised for appreciation, making this property attractive for investors seeking both immediate cash flow and long-term growth

Deal Rating: 7.3/10

Investment Strategy:

Utilize the BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat)

This strategy involves purchasing undervalued properties, renovating them to increase value, renting them out to generate income, refinancing based on the new value, and then using the capital to repeat the process. In Honolulu's market, where property values are high, this method can be particularly effective. For example, acquiring a fixer-upper in neighborhoods like Kalihi or Palama, renovating it, and then renting it out can lead to substantial equity gains upon refinancing.

Current Interest Rates:

Honolulu, Hawaii

• 30-Year Fixed Residential: 6.2%​

• 15-Year Fixed Residential: 5.8%​

• Commercial Rates: Starting at 6.0%​

Recent Federal Reserve rate cuts have led to a decrease in mortgage rates, enhancing buyers' purchasing power. For instance, a drop to 6.0% can increase the typical U.S. buyer's purchasing power by $9,000, making it a favorable time for investments.

Real Estate Tip:

Navigating Honolulu's Luxury Condo Boom

Honolulu's skyline is transforming with numerous luxury condominium projects. Developments such as The Park Ward Village, Kalae, and Ulana are reshaping neighborhoods like Kakaʻako, offering upscale living options. While these projects cater to affluent buyers, they also present opportunities for investors. Purchasing units in pre-construction phases often allows for lower pricing and the potential for significant appreciation upon completion. However, it's crucial to assess factors like HOA fees, rental restrictions, and market demand to ensure a sound investment.​

Economic Conditions

Honolulu's economy remains robust, driven by tourism, military presence, and a growing tech sector. The unemployment rate stands at a low 3.5%, reflecting a healthy job market. However, rising construction costs, up 5% over the past year, pose challenges for new developments. Additionally, the city's commitment to sustainable growth is evident in projects like Ward Village, a 60-acre master-planned community aiming for LEED-ND Platinum certification, blending residential, retail, and open spaces.

Market Rating: 6.1/10

Key Takeaways:

• Market Update: Honolulu's median home price reaches $1,185,000, marking a 10.2% increase year-over-year, signaling strong appreciation despite market adjustments.

• Deal of the Day: A $2,500,000 multifamily property in Kakaʻako offers $25,000/month rental income with a 7.2% cap rate, making it a lucrative investment in a prime location.

• Real Estate Tip: Understanding Honolulu's zoning laws is crucial for investors looking to maximize property use and value in a high-demand market.

• Investment Strategy: The BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat) is an effective approach in Honolulu’s market, particularly with undervalued properties in up-and-coming areas.

• Interest Rates: Honolulu’s 30-year fixed mortgage rate sits at 6.2%, while commercial loan rates start at 6.0%, making it an opportune time for refinancing and strategic purchases.

• Economic Conditions: Honolulu’s low unemployment rate (3.5%) and strong tourism sector contribute to a steady real estate market, though construction costs have risen by 5%, impacting new developments.

That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.