Do you believe it’s only a matter of time until Hawaii home prices crash as prices did in California? Well, you’re not alone. In the last six months, I have spoken with dozens people who believe Hawaii real estate prices will decline significantly.
Paul Brewbaker is the Senior Economic Advisor to Bank of Hawaii and his market analysis indicates Hawaii has more similarities than ever with Mainland real estate trends. Brewbaker believes the real time flow of information over the internet has removed the traditional Hawaii-California market time lag.
Brewbaker reports in the last cycle, California home building peaked in the mid 80s and bottomed in the early 90s. Hawaii home building peaked in the early 90s and the market bottomed later in the decade. In the current cycle, California and Hawaii peaked at the same time. Near the end of 2005, prices in both states and the entire nation declined together. Brewbaker said, “The peak in values was synchronized, as was the increase in inventory and the decrease in demand. It all happened at the same moment in time. So, to reassure the people of Hawaii, there is no lag – and no reason to be sitting around waiting for things to get bad.”
If you’ve been putting off your home or investment property buying plans, delay no longer. Interest rates are near all-time lows and the first time homebuyer credit is available until November 30, 2009. Don’t miss this unique opportunity to purchase when prices and interest rates are so low. Contact Michael Zimmerman for a no obligation consultation or give me a call at 808-457-9683.
