Honolulu Real Estate…Worst Behind Us?
January 14th, 2009 categories: The Market
A recent positive article posted at Forbes.com may signal that the worst of this is recession is behind us.
“These figures signal that the most intense period of the recession is behind us, not in front of us. Any “stimulus” applied by government has less to do with creating the recovery than letting politicians take credit when the recovery happens.”
CLICK HERE TO READ THE FORBES ARTICLE.
Here are a few factors that might indicate the worst is behind us.1. Fuel prices are down. In prep for this post I checked United Airlines web site for a fictional trip from Los Angeles to Honolulu for a two-week vacation at beginning at the end of this month and I found a round trip for $365.20. This is cheap! Given the cold winter I believe you will see tourism pick up sooner rather than later.
2. Hotel rates are down. A check of Hotwire.com found numerous Waikiki hotel rooms available in a range from $67.00 to $150.00 per night. All of a sudden Waikiki is looking like a pretty good deal.
3. Most businesses were already lean and mean. Since most of the businesses in Honolulu are small, I believe there was not a great deal of fat in our work force. We will not see the unemployment rates seen by other parts of the country.
4. Low interest rates. With 30 year fixed rate mortgages available in the range of 4.5%, purchaser buying power is up. This means buyers can pay a higher price and still have a low monthly payment.
5. Demand. For reasons stated in past posts, demand has never been met in core Honolulu. Combine this demand with low interest rates and I think you will see the local buyer segment of the market remain strong.
6. Obama. The population and media want to see him succeed! So I believe you will see more positive economic reporting and, therefore, consumer confidence will begin to moderate toward optimism.
Since the economy has a huge impact on consumer confidence, as it improves you will see the Honolulu real estate market improve too. That means this may be a terrific time to buy. Feel free to call me at 808-737-2093 or 877-737-2093 to discuss your thoughts or market needs.
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