We hope that our wishes for the New Year 2009 for a Hawaii vacation or even a return visit to Hawaii will come true for you. As there are quite a number of people who don't only dream of a vacation in Hawaii but play with the idea of buying property in Hawaii, we thought we let our friend Bill Jardine, longtime Big Island realtor for the Kohala Coast, Waimea area, share his real estate wisdom with our Hawaii blog visitors. You really want to know what a Hawaii realtor thinks about buying Hawaii real estate in 2009, then keep reading:
Forecasting the 2009 Hawaii Real Estate Market
To buy or not to buy? That is the question …..
"We don’t want our clients to ever be members of that group. Yet, predict we must, and certain old rules may still be applied with some reasonable expectation of accuracy. For instance, we know that the supply and demand relationship will endure. There are too many resort condominiums, in my opinion, and I believe that many were built based on speculative demand versus owner/user demand. Accordingly, I think prices will have to fall a long way before those resort condos become cheap enough to recommend. On the other hand, we have a shortage of good acreage near town, so prices for that kind of thing don't really slump, since demand is owner/user based and is relatively steady.
This past year we have been working with many buyers who intend to take advantage of this current malaise in the real estate market, and most of them believe that you can make a great deal of equity by taking advantage of under-valued properties. For instance, let’s say that you can buy a rental house for substantially less than its replacement cost. That being the case, you will quickly gain the difference as the demand for Hawaii real estate gradually swells. At this point, there are many properties available at prices far below replacement value, and we expect our loan appraisals to exceed the purchase price by substantial margins.
Very soon the Baby Boomer generation will begin making their retirement plans, and some of them will want to be in Hawaii. Our market area, the west side of the Big Island, is the area most likely to see the creation of wonderful new retirement communities and facilities, because we have the room, the infrastructure, the weather and the medical facilities. There are all ready financial giants here who are participating in the growth of the area, and they are serious people with wonderful vision. If we were to attract just one-percent of the Baby Boomers we would need to create 70,000 new housing units to accommodate them all.
According to these simple, major factors, we think that demand for Hawaii real estate that will appeal to retirees should stiffen quite a bit over the next few years as our national economy recovers in more efficient condition than before. It seems to make sense that those who purchase at today’s deep discounts will be handsomely rewarded."
Please, be aware that Bill's point of view is his view as a buyer's agent. This is an excerpt of Bill's article. You can soon read the full article about the '2009 Hawaii Real Estate Market' on Bill's website Big Island Byers Brokers or find his other Hawaii real estate articles in the top of our 'Blog Guest Authors'. Much mahalo Bill for your insight.
So, what do you think about buying a condo or house in Hawaii, now or later? Mahalo and aloha, Pua Hawaii Vacations
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→Hawaii Real Estate Market 2009
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