Home sales and prices on the rise - Hawaii Business

Full story: Honolulu Star-Bulletin

Oahu's September home sales and prices climbed in tandem for the first time since 2006, but market watchers peg the upsurge to a rush of first-time buyers and not an overall rebound.
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1 - 20 of 55 Comments Last updated Oct 25, 2009
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YES WE CANT

Fort Huachuca, AZ

#1 Oct 6, 2009
Oh Goody, Goody, Goody
realist

Kailua Kona, HI

#2 Oct 6, 2009
Just look at the past predictions of the people who are being quoted in the article. Do you still believe them?
Mike Hu

Wilsonville, OR

#3 Oct 6, 2009
Go housing prices, go!

Double the taxes.

The people not going care.
kaimuki

Mililani, HI

#4 Oct 6, 2009
Just wait when the Feds raise interest rates, the 8K tax credit ends and unemployment numbers don't improve. Maybe then, we will see through all of the smoke and mirrors and see the numbers are truly artificially high. There's no way our economy can withstand the worldwide economic meltdown. Can you say a SFH in Kalihi for 325K, and a SFH in Kaneohe for 370K...I cannot wait. Aurite!!!!!!!!
Ummmmm

Wahiawa, HI

#5 Oct 6, 2009
The only huge increase you see is in Hawaii Kai. Everywhere else is pretty much down.
alice

Hanalei, HI

#6 Oct 6, 2009
prices here in Manoa are sky-high. People want east Oahu.
Richard Head

Kaneohe, HI

#7 Oct 6, 2009
What irresponsible "journalism"! Hey folks, remember what happened in September 2008? Just that little thing where the financial system of America collapsed. No wonder home sales and prices were low compared to September 2009. Don't believe the hype folks, these realtors will do and say anything and contract convenient amnesia to get you to believe that prices are on the rise and that its a good time to buy. Saturn just went out of business and tourism is coming off a historic low in September of 2009. The recession on the mainland is done but the recovery has not started yet. Oh by the way, the State of Hawaii is still woefully in the red and major cuts are on the way. Home prices in Hawaii will continue to slump for the next few years. Be smart, save your money.
Getrealforeal

Koloa, HI

#8 Oct 6, 2009
Don't want to rain on the blind optimists parade, but Realtors will say anything to get to your money. The economic indicators (real ones) don't support a recovery, yet. Too many things are still happening. Unemployment is rising-visible UE almost 10%, invisible (people not counted) more likely around 20%. That's huge! Billions of dollars in RE ARM's resetting soon and many good people may not be able to keep up with much higher payments. Once the $8,000 first time buyer credit goes away we'll have another "cash for clunkers" after-effect. Car sales are way, way down now. Waaaay down! Yes, some people who sat on their money are buying homes now. How many of those are left right now? State worker furloughs coming, hotels report very low occupancy. Things will come around eventually, but very slowly and we may see another economic dip next Spring, as reality catches up with us. Just watch. Several hundred banks will fail next year with the big ones propped up by tax payers still on life-support and barely hanging on as well. Small businesses are struggling and few cannot get the loans they need to survive. How long can we artificially hold the economy up with bail-outs at our expense and the expense of our children and grandchildren? Not much longer, as the U.S. IS already broke and owes Trillions just in interest. The so-called recovery everyone talks about now is not a genuine one, yet. It's a feel-good media message to make people spend more cash NOW-just to regret it, likely next year. Hang on for a little while longer folks. Don't buy a home yet. Prices WILL have to come down much more, with inflation looming and possibly even more unemployment coming. Also, crazy, expensive, wasteful gov. programs in the works, which will require huge tax increases on everyone, not only the so-called rich. Don't be fooled. Tax increases always trickle down to the poorest.
Look at your paychecks and imagine a big junk of it not showing up each month by next year. Less buying power is not going to make people qualify for a home quicker, or spend more on other things. Most all baby-boomers are not going back to spending the economy into fake (credit)prosperity with over-consumption. They learned how to save now, live more modestly and buy less and in smarter ways. Sorry, more pain is coming because we never let the economy correct itself in a healthy way, yet. Soem event will kick the crutches out from under it. Maybe Israel/Iran war with $300 a barrel oil to follow, or another terrible terror attack, as was planned in NYC again. Who knows? These things influence the economy quickly. Life goes on, be optimistic anyway, but keep your own economic realism at the forefront. Don't rush into huge purchases you may not be able to hold on to, if...Next year home prices WILL decline again, according to the smartest economists with a great track-record of decades. Be smart, save money and watch.
Ahh-So-Deska

Honolulu, HI

#9 Oct 6, 2009
Harvey Shapiro is well and alive in Chason Ishii.
And Dan Tabori.
Except they're better. They found the silver lining and ignored the cloud. They are 'in the business' with a 'vested interest' in 'reading the tea leaves' the way that feeds their 'commission-based business.'
"We will have some months that look better and some months...etc."
Why, Mr. Real Estate Expert, do you have to say something that means nothing? Good practice?
Why, Mr. Reporter, do you waste our time with this, Mr Expert's tautology?
At least Walt Harvey had a real story to tell.
Oneuddabrudda

Koloa, HI

#10 Oct 6, 2009
Getrealforeal wrote:
Don't want to rain on the blind optimists parade, but Realtors will say anything to get to your money. The economic indicators (real ones) don't support a recovery, yet. Too many things are still happening. Unemployment is rising-visible UE almost 10%, invisible (people not counted) more likely around 20%. That's huge! Billions of dollars in RE ARM's resetting soon and many good people may not be able to keep up with much higher payments. Once the $8,000 first time buyer credit goes away we'll have another "cash for clunkers" after-effect. Car sales are way, way down now. Waaaay down! Yes, some people who sat on their money are buying homes now. How many of those are left right now? State worker furloughs coming, hotels report very low occupancy. Things will come around eventually, but very slowly and we may see another economic dip next Spring, as reality catches up with us. Just watch. Several hundred banks will fail next year with the big ones propped up by tax payers still on life-support and barely hanging on as well. Small businesses are struggling and few cannot get the loans they need to survive. How long can we artificially hold the economy up with bail-outs at our expense and the expense of our children and grandchildren? Not much longer, as the U.S. IS already broke and owes Trillions just in interest. The so-called recovery everyone talks about now is not a genuine one, yet. It's a feel-good media message to make people spend more cash NOW-just to regret it, likely next year. Hang on for a little while longer folks. Don't buy a home yet. Prices WILL have to come down much more, with inflation looming and possibly even more unemployment coming. Also, crazy, expensive, wasteful gov. programs in the works, which will require huge tax increases on everyone, not only the so-called rich. Don't be fooled. Tax increases always trickle down to the poorest.
Look at your paychecks and imagine a big junk of it not showing up each month by next year. Less buying power is not going to make people qualify for a home quicker, or spend more on other things. Most all baby-boomers are not going back to spending the economy into fake (credit)prosperity with over-consumption. They learned how to save now, live more modestly and buy less and in smarter ways. Sorry, more pain is coming because we never let the economy correct itself in a healthy way, yet. Soem event will kick the crutches out from under it. Maybe Israel/Iran war with $300 a barrel oil to follow, or another terrible terror attack, as was planned in NYC again. Who knows? These things influence the economy quickly. Life goes on, be optimistic anyway, but keep your own economic realism at the forefront. Don't rush into huge purchases you may not be able to hold on to, if...Next year home prices WILL decline again, according to the smartest economists with a great track-record of decades. Be smart, save money and watch.
Nice to see that some really get it and don't live in economic dream-land, like so many folks, who then wake up and are completely lost! Go brudda go!
LocalBoy

United States

#11 Oct 6, 2009
So inflation is good as long as it's home prices? Just another government money waste! Want to buy a house? How about saving for it and not expecting a handout from others!!!!

What's next, 100 year loans for home owners?
Brighteye

Koloa, HI

#12 Oct 6, 2009
LocalBoy wrote:
So inflation is good as long as it's home prices? Just another government money waste! Want to buy a house? How about saving for it and not expecting a handout from others!!!!
What's next, 100 year loans for home owners?
No kidding! Good comment, Local Boy! Whatever happened to actually paying for something. What a concept, huh! Government bail-outs (fake crutches with real costs later) stink to heaven and cost the hard-working, smart, honest, modest, bill-paying citizens the most. The ignorant, wasteful and free-loaders usually benefit from gov. help. So, we punish the good people. Makes a lot of sense, doesn't it? Totally insane concept!
Ahh-So-Deska

Honolulu, HI

#13 Oct 6, 2009
Guru wrote:
Oahu stats...from PBN
"Monday, October 5, 2009, 11:48am HAST | Modified: Monday, October 5, 2009, 3:28pm
Oahu September home sales, prices rise

“Consumer psychology appears to be decisively turning for the better as the housing market has been showing signs of bottoming, if it is not already past a bottom point,” Lawrence Yun, chief economist for the National Association of Realtors, said of the Oahu housing market.“Affordability conditions are now at multi-year highs thanks to lower home prices and very low mortgage rates on conforming mortgages.”

The year-to-date home sales numbers were a 10-year low, Yun said.

“One reason for the much lower sales can be explained by stricter mortgage underwriting guidelines,” he said.“In addition, Hawaii suffers from the credit freeze that is taking place in the jumbo market and for second-home purchases.
“However, the biggest reason for such low sales activity is likely due to fear of further home price declines.”
So what is it: the bottom turning up (because, what?, one month higher prices?) or is it going down, due to fear, which feeds lower prices.

The big story THIS MONTH was that listing prices fell hard,-8% for condos, and for homes,-10%. And when sellers list lower, buyers buy lower.

So guess what the HEADLINE should have been, and wasn't:

PRICES SET TO FALL FURTHER.
ipj737

Kailua, HI

#15 Oct 6, 2009
It's classic... every time something positive comes out about real estate all the doomsday clowns come out in droves with their negative "don't believe the hype" statements. And when something negative comes out, all the doomsday clowns come out in droves with their "it's only going to get worse" statements.

Do you guys ever get tired?

When the $8K credit disappears it will have ZERO effect on our housing market. How does anyone with at least a shred of common sense expect a credit representing just over 1% of the median price and available to <20% of homebuyers have ANY impact on housing prices here WHATSOEVER?

This isn't Detroit where the $8K credit represents 10%(the maximum credit) of the purchase price of an average SFH. Here, it's just over 1 stinking percent of the purchase price. And somehow this 1% will make a difference? The $8K credit wasn't supposed to help housing in high priced areas like Hawaii... its purpose is to help first time buyers in entry level areas in LOW priced markets... and that's not Oahu. Quit smoking whatever it is you're smoking.

And interest rates aren't going anywhere anytime soon. And I'd bet $100 that not only will the $8K credit be extended - it will be INCREASED come 2010. The government will keep pumping its resources at the expense of YOUR tax dollars to keep interest rates low, banks lending and $$$ incentives strong till house prices reverse its course. What's the only way to protest this rampant waste of tax dollars other than cry on these forums? BUY A HOME AND GET YOUR FAIR SHARE.

Having said that, I predict that Oahu home prices will first go up and then go down. But not particularly in that order.
overpriced

Wahiawa, HI

#16 Oct 6, 2009
get ripped off and get foreclosed...

the banks screwed you...

oh well... bum by you learn...

bum by no come for others..

hehe!!!
bumm

Wahiawa, HI

#17 Oct 6, 2009
bumm by you learn...

bumm by no come for others...

hehe!!

“ Guru”

Since: Jan 08

Manhattan Beach

#18 Oct 6, 2009
Nice little move in Kailua...up 15%. hehe...
I have to laugh at all the "I told ya so's" in here. The wannabee's are out like little kids on Halloween night in here...crash crash crash...lol!

Fact is you are seeing a bumpy landing Hawaii. Outer Islands are still getting toasted...but Oahu will be the first one out, which is not yet. Right now those that come in are hitting the nice properties for a cool bargain...condo's always will move as they are the lowest priced product available. The middle will stay about where it is unless some outside factor permeates Hawaii which we won't talk about here. Fact is, you will slosh around in the $550-600K range, and that will be it for the near term. You will take a dip between now and February...then start to show some stability. This summer should be interesting. In the end, Oahu will have held up very well considering everything. When inflation starts to become something that hits the news on a nightly basis, look out. People will want to own anything but the dollar, and Hawaii is still one of the best deals out there if you have a few bucks.

Only 40% of the stimulus is being turned seen, wait until the next 60% gets unleashed, and stimulus 2 shows up...you ain't seen nothing yet Hawaii! The predictions I made two years ago are right on schedule.

BTW...gold is roaring, silver is up 53% for the year. The dollar is toast, and this is just the beginning. Again, just as I predicted in early 2008. No matter how you cut it, this is gonna see it's way through the proverbial "pipeline", and land right on your doorstep. You had better be on the right side of the turn this time, or you will surely pay the price. Those who are on the wrong side will be devastated.
http://www.thebulliondesk.com/

“ Guru”

Since: Jan 08

Manhattan Beach

#19 Oct 6, 2009
Aussie's know which way up is...
http://www.nbr.co.nz/article/aussie-interest-...

“ Guru”

Since: Jan 08

Manhattan Beach

#20 Oct 6, 2009

“ Guru”

Since: Jan 08

Manhattan Beach

#21 Oct 6, 2009
LocalBoy wrote:
So inflation is good as long as it's home prices? Just another government money waste! Want to buy a house? How about saving for it and not expecting a handout from others!!!!
What's next, 100 year loans for home owners?
100 year loans were common in Japan in the 80's-90's.

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