Hot Deals and Cool Rates Make Now the Time to Buy In Hawaii

There have been signs of the economy slowly coming back to life. We’ve seen good some good things happening in our own neighborhoods. I know that the real estate market operates in cycles and that things will eventually be good again. But STILL I am surprised when I see big things happening.

Contemplating my trip last week to Mackinac Island I really had prepped myself for some sadness. Like all the stores that have closed down in Courtland Center, I was sure I was going to see some signs of failing commerce. I didn’t really expect to see the windows boarded up at Ryba’s Fudge Shop, but I knew there’d be something. I was wrong. What I found was all new residential housing going up! Big beautiful estates and charming upscale neighborhoods. The clear cutting of the trees disturbed me, I admit, but those feelings were trumped by joy that money was being invested in Michigan by investors and spent by buyers scooping those properties up. People are getting comfy with their money again and not afraid to spend it.

This isn’t just happening in Michigan, though, nationally we’re seeing increased consumer spending and dips in foreclosure. I said “nationally” but guess what state actually saw an increase in foreclosures last month. HAWAII! I know, can you believe it?

So I talked to my friend Bob who has been involved in Hawaii real estate for over thirty years and he explained that it takes awhile for trends to make it to the Islands, and that they are just now experiencing what the rest of us are finally starting to recover from.

“In 30 years I believe this is the fifth downturn I’ve gone thru here in Hawaii.  When a recession hits, Hawaii is the last to feel it and the last to recover – economic changes always seem to move westward.  So for foreign Buyers and Buyers on the mainland, this is good news because they can start to experience the recovery on the mainland and still be able to take advantage of our lower market values here.”

Makes sense. As our ability to spend is rising, so are the prices of the homes for sale. But in Hawaii, and other areas just now starting to decline, the prices are actually going lower, making it a good time to invest in those areas.

With interest rates in Hawaii at 4.71% for a 30 year mortgage and foreclosures there on the rise, there are incredible opportunities for second homes and investment properties to be had. Can you think of a better place than Hawaii to invest in a vacation home?

If you would like more information on the Hawaii market you can call Bob McCollor @ 808.283.8137 or browse the inventory here.