Davids’ Big Island Mauna Lani Real Estate

June 14, 2009

Has Big Island Real Estate Found The Bottom?

Filed under: Kohala "Gold" Coast — David C. Swanson @ 12:08 pm

I recently took some time off from blogging, so I could focus more on just making a living in Hawaii’s ever changing real estate industry. Sure, real estate agents often have plenty of time for blogging, social networking, and so on. However, I was getting a bit overwhelmed by all the negative media attention and armchair real estate analysis that places the downturn in Big Island real estate in the same category as Armageddon.

I often spend time with buyers who are looking for deals in foreclosures, short sales and distressed (need to sell) resale listings. Many see this time as a great opportunity to take advantage of the hardships of others. That said, there remains a great deal of vacillation and lack of commitment even among buyers in this category.

I have spent a great deal of time with individuals who say they are ready to own a “piece of paradise,” who have evidently done their homework and “understand” how much prices have dropped in this current buyer’s market. Yet, these same “lookers” continue to head back to the mainland, leaving me with, “We’re still thinking about it! Let us know when you reach the bottom!”

I maintain that this consumer doubt with the market bottom position remains the BIG question for so many hesitant buyers. Do I own now or should I wait a while longer until the bottom drops more?  My feeling is that, whether that buyer is seeking high or lower-end properties, the “bottom feeding mystery” looms over their heads. Nearly everyone wants to know when the Big Island real estate market will reach the bottom.

Cash buyers are one group that doesn’t seem to be so caught up in the hesitation game. These are the ones who can afford to capitalize on the present lower pricing and seller willingness to just “sell off.” I also have considered expert opinon from all sectors, and though I believe we are on the right path to economic recovery, it does appear that it will take some more time.

Yes, there is risk involved when making a decision to purchase real estate. Yes, we agents can work harder and smarter to assure our clients of the facts about what has sold, the economic trends, and types of products. We can be informed and ready to back up what is going on in our market.

A June 11 Pacific Business News article titled “Hawaii Ranks 15th in U. S. for Foreclosures, Sees Nearly 400% spike in May” states that Hawaii had 816 foreclosures in May; one filing for every 621 households: http://pacific.bizjournals.com/pacific/stories/2009/06/08/daily39.html. At the same time, a Friday June 5 article in Pacific Business News titled “Big Island Home and Condo Prices Fall” explains that median prices have dropped and the trend continues to follow previous predictions that real estate recovery in the state of Hawaii is estimated to show positive change in 4th quarter 2010.

I am positive that good times lie ahead. Life is good! I may not be able to predict when the bottom will be reached, but I do know that the Kohala Coast and the Mauna Lani Resort have many excellent buyer opportunities now. I also know that the agents at Coldwell Banker Maryl Realty are ready, willing and able to give the very best service and customer care all the time to our clients and associates.

Please send your comments and help us solve the never-ending question about the bottom of the Big Island real estate downturn.