Recently I had a young man ask me, "Considering all the bad news for Real Estate, should I buy now?" As I contemplated on how best to answer him I suddenly realized, there is good news out there, of sorts.
I had to literally force myself to properly answer this young man’s question of whether he should wait to invest in Real Estate or buy now, especially since interest rates are so low and as I began to answer his question via email I suddenly realized I had the information he was seeking right at my fingertips.
Certainly, there is enough to be depressed about if one listens to or reads the news: Obama’s approval rating is -17%, the A.C.L.U. is helping Al Queda, The N.A.A.C.P. wants to censor Glenn Beck, The Honolulu Star-Advertiser has fallen off of the LEFT wing of an aircraft somewhere, it’s o.k. to overturn Judges rulings, it’s o.k. to overturn voters resolutions, it’s o.k. to void the Consitution and go around Congress and on and on and on…
The Real Estate Market news is no different in terms of depressing news: The Homeless are everywhere on our Beaches and our Leaders have no solutions. Short Sales and Foreclosures are rising at an alarming rate. Home values continue to decrease. Unemployment continues to rise, etc.
The success of the Real Estate Market everywhere, is directly tied into the performance of the Economy, Unemployment and above all else, Consumer Confidence.
Although there may be many ‘challenges’ we are facing today in our Country, State and local Real Estate Market, it does not mean that there is not any opportunity!
How About Some Good News?
In the past three years Oahu’s Median Single Family Home Sold Price has dropped -5%. Go figure! Considering all the bad news we might be hearing how can this be true? Well…it is.
In the past three years Oahu’s Median Condo Sold Price has dropped -7%.
In the past three years the Hawaii Kai Condos have increased +4%
In the past three years Hawaii Kai Single Family Homes have increased +5%.
The Sky is Not Falling, neither is it going to!
The Mililani Area (Town) is HOT and it has increased +1%.
This is only a -3% drop.
This is only a drop of -7%
There are areas of the Island that performing much better than other areas and when you take the Island as a whole the bottom line is pretty simple:
West Oahu is where the Depreciation is Occurring.
Of course this is a generality and there are areas within West Oahu that are performing fantastically just like other areas on Oahu that are considered to be Under Performing, within these areas are neighborhoods, Condos and Town Homes which are doing very well.
This is a -23% decrease.
I can site examples all day from my statistics but you can just go to my website at: http://www.hawaiirealestatestatistics.com
Do not be swayed by negative news. Do not be swayed by rosy analysis of the Oahu Real Estate market, especially the articles in the Star Bulletin. Don’t let large Brokerages or agents tell you “Now is the Best Time to Buy” and take this as the truth.
Do your own Homework. Contact me if you want to find the “Opportunities” but mostly…Enjoy Life, spend time with your Family and Friends and do not take Life too seriously. “The Sky is not going to Fall.”
Mike Gallagher, Broker in Charge, Abe Lee Realty 808-384-9015 mikeg@hawaii.rr.com
Ethics Complaints Review Committee Member, Honolulu Board of Realtors
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