Confidence Good For Honolulu Real Estate

May 26th, 2009 categories: The Market

Never fight a self-fulfilling prophecy! Today’s Honolulu Advertiser is reporting an increase in the Consumer Confidence index, the stock market is responding in a positive manner and many economists are saying the worst is behind us.

“The size of the monthly increases in April and May in consumer confidence encouraged economists. Gary Thayer, chief economist at Wells Fargo Advisors, says that unless the economy suffers from major financial shocks, it looks like “we’ve turned the corner” on confidence.”
CLICK HERE TO READ THE HONOLULU ADVERTISER ARTICLE

The ongoing reporting of bad news led us into this recession and, guess what, the opposite will hold true too. The more good news we see reported the more confident we will become and the better the economy will get. Is it just me or are we seeing more positive news being reported? What does the mean for Honolulu real estate?

Here are three possible initiatives from the building confidence.

1. As consumer confidence improves, buyers will be more comfortable buying and we should see quite a few homes sell this summer.
2. Add in very low interest rates and there is more impetuous for homes to sell.
3. Combine these with pent-up demand being released by the longer selling days of summer and we should see prices firm over the next few months.

The only question in my mind is this. If the bottom has been met, then how long and how strong would a recovery last? Time will tell.

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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.

This entry was posted on Tuesday, May 26th, 2009 at 10:04 am and is filed under The Market. 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.