Real Estate Myths Busted!
October 28th, 2008 categories: Rants & Riffs
Frontdoor.com is a very interesting Internet site. It has excellent tips for buyers and sellers of condos and home. One of its recent posts talks about the “10 Real Estate Market Myths”. In a world awash in negativity, it is nice to hear some positive clarity. The first myth they debunked is below.
“Peak-to-trough home price declines to date have been about 20 percent. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20 percent, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you’re selling your home, the best thing to do is price your home right.”
CLICK HERE TO READ THE ENTIRE POST.
To find out the truth about Honolulu homes and condos, call me at 808-737-2093 or toll free at 877-737-2093.
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Buffett Sees Buffet!
October 27th, 2008 categories: Rants & Riffs
One of the richest men in the U.S., Warren Buffett, sees a great deal of opportunity in our stock market. A Bloomberg.com article says the following.
“Warren Buffett said he’s buying U.S. stocks and, if prices stay attractive, his personal investments, as distinct from his stake in Berkshire Hathaway Inc., will soon be wholly in American equities.
Writing in the New York Times, he said he’s following the principle: be fearful when others are greedy, and greedy when others are fearful.
Exaggerated concern about the long-term prosperity of the many sound U.S. companies is foolish, and most will probably be setting profit records in years to come, Buffett said.”
CLICK HERE TO READ THE ARTICLE
I am similarly bullish on core Honolulu real estate and here is why.
1. Low interest rates-with the Fed injecting a great deal of money into the economy, I believe we will have low interest rates in the short to mid-term. This means, when confidence returns, buyers will be able to buy with very low monthly payments.
2. Demand-even with all that has occurred in the financial markets, my sense is that buyers are tentative, but they still want to buy because living in Honolulu is so desirable.
3. Low supply-though supply is up some, in comparison to historic numbers, it is at a moderate level. This means that our market could turn very quickly.
4. Hawaii-this is Hawaii…need I say more. Our appeal to those who do not live here is strong. A newly minted prosperity happens around the world, in the past, those nouvelle riche will want to own in paradise.
Since values are flat and may be moving incrementally down and there is a good selection of inventory, I believe this is an opportune time to buy. Call me at 808-737-2093 (toll free 877-737-2093) to discuss taking advantage of this market.
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Strengthening Yen Good For Honolulu Real Estate
October 24th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
Since the late 1980’s Japanese investors have been significant players in the Honolulu real estate market. A recent article at Bloomberg.com shows that the yen is at a 13 year high against the dollar.
“The yen climbed to a 13-year high against the dollar as a worldwide drop in stocks encouraged investors to dump higher-yielding assets and pay back low-cost loans in Japan.
Japan’s currency surged to the strongest in six years against the euro as the prospect of a deepening global recession prompted the unwinding of carry trades. The pound fell below $1.53 after the U.K. economy shrank in the third quarter. The dollar rose to a two-year high versus the euro as investors sought refuge in the greenback.”
CLICK HERE TO READ THE ENTIRE ARTICLE
When other parts of the US real estate market are slow, in the past, international interest in Hawaii has helped to drive home and condo values. So the weakness in the dollar may in fact bring further foreign investment to Honolulu.
Today’s picture was taken from a lot on Portlock and it is looking toward Hanauma Bay.
View from Portlock toward Hanauma Bay
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View Of Honolulu From Portlock
October 24th, 2008 categories: Views of Honolulu
I had a chance to visit a fabulous nearly 30,000 square foot ocean front lot in the Portlock area. This picture was taken on the ocean side of the lot looking back at Honolulu.
Diamond Head & Honolulu from Portlock
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Honolulu’s Ala Plaza Condominium
October 23rd, 2008 categories: Honolulu Condominiums
Today’s picture is of the Ala Plaza Condominium. It is located in Honolulu and is about a mile and a half from the University of Hawaii. The picture was taken from the Ala Wai Canal side of the building looking toward the mountains. CLICK HERE FOR A COPY OF A MARKET ANALYSIS ON ALA WAI PLAZA.
Ala Plaza Condominium
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Good News In California Home Sales!
October 22nd, 2008 categories: Honolulu Real Estate 101
Today’s Wall Street Journal had great news! Read it and realize there is hope!
“Investors and first-time home buyers are snapping up foreclosed houses here, with the number of local sales up almost fivefold from this time last year. While the volume of existing-home sales across the U.S. fell 10.7% in August from the previous year, according to the National Association of Realtors, there are signs that the most damaged of markets are starting to heal themselves. Across hard-hit California, sales volumes rose 65% in September compared with a year ago, said MDA DataQuick, a San Diego-based real-estate information service.”
CLICK HERE TO READ THE ARTICLE.
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Honolulu’s Marco Polo Condominium
October 22nd, 2008 categories: Honolulu Condominiums
Today’s picture is of the Marco Polo Condominium. It was taken from the Ala Wai side of the building shooting toward the mountains. CLICK HERE FOR A COPY OF A MARCO POLO MARKET ANALYSIS.
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Stryker Brigades Mean More Construction in Honolulu!
October 22nd, 2008 categories: Reasons To Sell
Jobs, jobs, jobs and more jobs. An economy thrives on them. We are fortunate to have Hickam Air force Base, Pearl Harbor Naval Base, Kaneohe Marine Base, Fort Shafter Army Base and Scholfield Barracks. All of these add directly and indirectly to our economy. A recent article in the Honolulu Advertiser outlines the Stryker plan.
“The Stryker is an eight-wheeled troop carrier. The Schofield-based Stryker brigade, which consists of 328 Stryker vehicles and 4,000 soldiers, is deployed in Iraq and is expected back in Hawai’i around March.
As part of the overall $1.5 billion effort to base the brigade here, the Army plans to build 71 miles of private trails on O’ahu and the Big Island for Stryker vehicles, as well as new firing ranges.
Land purchases included $21 million for 1,402 acres south of Schofield for a firing range and motor pool, and $30 million for 24,000 acres of Parker Ranch land next to the 109,000-acre Pohakuloa Training Area for Stryker maneuvers on the Big Island.”
CLICK HERE TO READ ADVERTISER ARTICLE.
The recent commitment to Stryker Brigades at Scholfield Barracks is a direct 1.5 billion dollar investment in Hawaii’s economy. The related construction jobs will have a multiplier effect! Add to this the additional bodies brought in to fill the Strykers and I think this is good news for continued support for our housing market.
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3 Honolulu Short Sales
October 21st, 2008 categories: Distressed Properties
Here is today’s list of Honolulu homes that are subject to short sale approval. CLICK HERE FOR A COPY OF THE COMPLETE LIST. Call me at 808-737-2093 (toll free 877-737-2093) if you would like to discuss any of the properties.
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Low Housing Starts A Good Sign For Honolulu Real Estate
October 21st, 2008 categories: Distressed Properties, Rants & Riffs
You may have heard that housing starts are at a 17 year low (see quote from WSJ below). This means that those associated with building homes are experiencing difficulty, however, part of the problem in the mainland market is that it is over-built (too many homes not enough buyers). In order for those markets to turn around, building must slow first! The slowing in the construction industry will help current inventory get sold.
“Housing starts and consumer sentiment declined significantly in September, reflecting a national retrenchment protracted by the global credit crunch.”
CLICK HERE TO READ THE WSJ ARTICLE.
Kayak race on the Ala Wai
How does this apply to Honolulu real estate? To be clear, core Honolulu is not over-built. Bad things happening in the mainland inevitably paint us too. The mainland market must bottom and turn for our houses and condos to start appreciating. While we wait for the continental US to get its proverbial act together, I believe our market will remain relatively healthy. Our inventory is at a moderate level and we have very good and available mortgage financing. Therefore, remain optimistic as we have brighter days ahead of us.
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