It’s a scary world out there sometimes – today’s Hawaii real estate market is no different. If you’re actively shopping for a house, you may find yourself not knowing whether you’re coming or going. Today’s market is full of twists and turns. Where to begin? Which news should you pay attention to and which should you ignore? What’s up with all that foreclosure robot stuff and how does that affect me? Should I stay or should I go? (I always liked The Clash)
In two nights the streets of Waikiki and everywhere else in Hawaii are going to be full of revelers in costumes. And just like the kids walking down Kalakaua Street, today’s Hawaii housing market is also wearing a scary costume. Why the metaphor, Mike? Because what looks like one thing on the outside is very different once you take off that white sheet and see what’s underneath.
We all know that interest rates are as low as just about anyone’s ever seen and that prices are low as well. Everyone should be buying, right? It ought to be a Hawaii homebuying frenzy! But it’s not and that’s troubling. Why aren’t people rushing into the market? If you ask me (and if you’re reading this blog then you kind of are, haha), it’s because of two things. One, people aren’t employed at levels to buy today’s houses, even at discount prices; and two, there’s a scary ghoul around the corner just waiting to come out and frighten us all.
As much as has been made about the current state of foreclosures, there are plenty more that are going to come to market in the next couple years. So people are understandably not sure how that impending influx of foreclosure-priced properties is going to affect their potential purchases today, and I think that makes total sense. Today’s ‘steal’ could end up being an ill-timed purchase in the near future. Are you willing to ride that out? You better be.
So does that mean that everyone should just wait on the sidelines while the Hawaii real estate market goes through some corrections for the next 2-3 years? Not at all! Just like Halloween isn’t all about the ghosts and goblins, there are some Snow White costumes out there as well. It’s not all doom and gloom. There are plenty of good deals out there if you know where to look, how to negotiate and how to beat out your competition.
The point is that there is an increasingly confusing mix of opinions in the news outlets everyday about what’s waiting for us. We’ve hit bottom; we haven’t yet hit bottom. Interest rates are going up; interest rates are staying flat. I’m of the opinion that it’s still going to get worse before it gets better, so I’m concerned (scratch that — I’m irate) when I hear certain real estate professionals encouraging people to jump into the market today (buy! buy! buy!). For some people that might actually be the right course of action, but it’s hardly blanket advice for everyone. Think about your source when deciding who to believe.
The ultimate decision, of course, is yours just as is the responsibility to be educated about Hawaii real estate. So beware of ghosts, vampires and all the other scary monsters out there. Lift up the white sheet, see what’s underneath and then objectively decide whether today is the right time for you to enter what may be a haunted housing market!