Hawaii Real Estate Market Update

As we near the end of the year, it's always good to look at the positives and negagives of the market and what the future may hold.

Positives:

Low interest rates

Increased individual purchasing power

Extended first time homebuyer tax credit

Expanded tax credit program for home owners purchasing a home.

FHA extends higher loan amount ceilings.

Stock market is moving up

National GDP at 2.8% (The recession is over?)

Fed promises to keep interest rates artificially low to strengthen economoc growth.

Low prices for real estate

Low inflation

Housing market in the US is stabilizing


Negatives:

Mortgage loan requirements are more stringent, limiting Buyers who can qualify.

FHA rules for condo approvals are changing and in flux

GDP Growth is due to public sector Cash for Clunkers and First Time Homebuyer tax credits. These programs eventually end along with any jobs created.

With the Treasury printing and expanding the money supply, the value of the dollar is softening.

Low housing inventory means multiple offers and competition for well priced properties.

Hawaii unemployment will probably continue to rise with the upcoming increase in the unemployment fees for businesses to make the state unemployment fund liquid. Businesses will probably do less hiring and/or go out of business.

Summary:

Based on the positives and negatives noted above, indications are that 2010 will be close to the bottom of the real estate cycle for Hawaii.

As a result, this is an excellent time for Buyers who can qualify for a loan, to purchase a home.

It's also an excellent time for Sellers who need to sell, to sell quickly if priced well.

It's also an excellent time for sellers to move up by purchasing a better home in a better neighborhood, with the low prices currently available.


If you'd like to discuss your options as a Buyer or Seller, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351- 1507.