Really, This Is A Good Thing!

February 18th, 2009 categories: Rants & Riffs

If too much inventory is one of the problems in the real estate markets, then a drop in housing starts is good.

“Key pieces of economic data were released Wednesday, including a U.S. Commerce Department report showing housing starts in January tumbled 16.8% to a seasonally adjusted 466,000 annual rate compared with the prior month.”
CLICK HERE TO READ THE ENTIRE WSJ ARTICLE

Honolulu real estate is not immune to economics 101. Too much supply and low demand, equals a slowing market. Low supply and high demand, equals an appreciating market. As I have said before, Oahu is the tale of two cities.

Core Honolulu (Kam Heights, down town, Manoa, on around to Kailua) has good demand for homes that locals can buy. Though values are down some, I am not seeing insanely low sales prices in this market.

The balance of Oahu (with the exception of some areas in Waikele and Mililani) has a great deal of inventory and very low purchase prices can be had.

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

This entry was posted on Wednesday, February 18th, 2009 at 9:10 am and is filed under Rants & Riffs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.