Honolulu Real Estate At A Bottom?
April 7th, 2009 categories: For Buyers, For Sellers, The Market
Brian S. Wesbury and Robert Stein posted an article at Forbes.com entitled, “The Recovery Begins”. Amidst the uncertainty and negativity that can be found in people and the markets, it is refreshing to find an optimistic view of the place in which we find ourselves. They make a very good case that the Federal Reserves’ recent monetary policy is beginning to work.
“The Federal Reserve is following possibly the most accommodative monetary policy of its 96-year history. The economy and stock market are floating on a sea of liquidity. That’s all that really matters right now.”
“There is an old investor saying, “Don’t fight the Fed,” and today is clearly a time when we should heed our forefathers’ advice. This sea of money is impossible for the economy to ignore.
Home sales, retail sales, auto sales, oil and other commodity prices, the CPI, the PPI, the Baltic Freight Index and the stock market are all signaling that this money is working its magic. It takes about six months, but when the Fed injects money into the economy, spending increases. It always works. And this time, there is also a rebound in velocity taking place at the same time.”
CLICK HERE TO READ THE ENTIRE FORBES ARTICLE
Anecdotally, I am starting to sense a more vibrant purchasing interest from buyers that have been fence sitters for the last six months. I am also hearing from brokers and agents in certain parts of California that housing inventory in some key markets is starting to shrink. Even with this good news, I think the Honolulu real estate market could be flat for the next 6 to 24 months. But the optimist in me wants Wesbury and Stein’s article to be dead on!
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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.
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Thank you, Keahi for such current real estate news. I have to say, I agree. San Francisco is experiencing increased interest. My clients who have been on the sidelines are back on the hunt for a bargain. The interest rates are great and SF home prices are soft. (although the entry point remains high).
Aloha. Keep the great articles coming.
Sorry my English is not too good, but I do like this article. Thanks for taking the time to share your ideas, where I’m from people don’t share much. Anyways, I’ll share this with my friends. Thank you!