Oleg
Potemkin, (RA) Coldwell Banker Pacific Properties
Tel:
(808) 398-9987 Fax: (808) 949-6862 Email:
oleg@hawaii-realty.com
Honolulu
Real Estate Opportunities - Working on the Numbers That Count
In assessing
investment opportunities in Honolulu real estate, stakeholders and
main players share some common concerns. Market analysts,
economists, brokers, appraisers and lenders all agree that the
situation is still volatile and with the way things are playing out,
there have to be some positive signals in some critical variables.
Experts consider the
following variables as critical in their assessment of the potential
of Honolulu
real estate investment opportunities:
Overall impact of the economic stimulus package
Prevailing interest rates
Consumer confidence
Migration trend in Hawaii
Inflation
While considering all
these critical variables, let us look at several scenarios being
presented by industry experts. It is essential that you seriously
take them into account when assessing your possible investment
options in Honolulu real estate markets.
Scenario #1
Recovery will commence in the latter part of the current year
With the assumption that the economic stimulus package will have
positive impact on the economy, things should start to get back on
the right track during the last quarter of the year. The
bottoming-out has already commenced with the prevailing low interest
rates and implementation of tax credits which led to the increase in
personal consumption and refinancing. The favorable climate will
also encourage more Hawaii
tours as more people start to spend their money on consumables.
Scenario #2
Slight downturn with recovery commencing towards the end of the year
Home prices will continue its slow decline. Turnaround will largely
depend on how fast banks are going to loosen up their credit
offerings. If this tight credit persists for the remainder of the
year, then we are not seeing potential recovery in home sales and
prices in Honolulu real estate. Cash buyers never had it so good.
Lower values have been the main draw in most markets and a 20% off
the list price is the usual norm in most of these markets.
Scenario #3
Sluggish recovery with occasional price spikes
The market condition will be generally volatile for the remainder of
the year, with no definitive indication that the market is bottoming
out. Even analysts will not be able to make clear assessment on how
things will play out on a month-on-month basis. The recovery will
not be smooth and the situation is expected to bring more
difficulties before we start getting positive results. Home
inventories will remain depressed in most Honolulu real estate
markets, and we may not be experiencing the same downward pressure
in home prices that other real estate markets are currently
experiencing. However, we will begin to see some action in the
$400,000 to $800,000 price range.
Scenario #4
Market prospects are difficult to predict but will perform better
than mainland real estate markets
There are some market analysts that insist that we need to get past
the worst part of the crisis in order to make a more precise
prediction on how the market will play out in the near future. It is
essential that we veer away from our inclination to compare the
Honolulu real estate with that of Miami or Las Vegas real estate
markets. You have to understand that our market doesnt have the
same level of home inventory of these Mainland real estate markets.
About the Author
Joe Ferguson is a freelance writer who enjoys his Hawaiian
Vacations. One his current projects includes writing for Hawaiian
Marketplace which offers user generated reviews for Hawaiian
activities. So if you are interested in taking different types
of tours in Hawaii be sure to visit the website.
I invite you to browse through my
Hawaii real estate site and feel free to call me anytime at (808) 398-9987 or email me with any questions you may have about buying or selling real estate in beautiful Hawaii. I look forward to hearing from you and helping you with your all Hawaii real estate needs.
Your Hawaii
Luxury Real Estate Specialist
Oleg
Potemkin, (RA) Coldwell Banker Pacific Properties
1909 Ala Wai
Boulevard, #C-2,
Honolulu, Hawaii 96815 USA
Direct: (808) 398-9987 Fax:
(808) 949-6862 Email: oleg@hawaii-realty.com
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