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Aloha Everybody!
The Real Estate Report is mixed this month. The Year to
Date numbers show the most notable trends so that's all
I'm looking at. The monthly numbers are too erratic,
up, down, up, down, different every month. The YTD
numbers show that we are about 40% below 2007 numbers
for Sales Volume and Sales Units. Not good when you
take into account 2007 was a pretty dismal year itself!
The Residential Median Sales Price appears to be fairly
steady with 2007, with some exceptions. Condos show a
5-10% increase in prices over last year. But I don't
buy it. There are too many projects going up and it's
skewing the numbers. Condo prices are down - take it
from me. Probably down around 10% to 15%. Some real
numbers are the east side vacant land numbers which show
a decrease of 20%. No development skewing those numbers
(at least no developments "selling"). As I've said many
times before, vacant land is a great deal right now on
the Island.
To summarize, it looks to me like we are in some type of
holding pattern.. we aren't going up yet, but not going
down much more either.. just steady eddy. Will it drop
further? My gut tells me prices may drop a littler
further in some categories.. notably vacant land, and
condos. But I think houses have hit their bottom. Low
end homes in Princeville are selling in the $700's and
people are scooping those up. East side low end homes
are going in the $400's and people are scooping those up
too. Even if the prices drop a little more, it won't
make much of an impact if my other hunch comes true...
the rise of interest rates. We are at historically low
levels for interest rates (see graph I've attached) so
even if the prices drop a bit more, a quarter point or
more interest rate hike on your monthly payment is going
to negate that. Think about buying if you've been on
the sidelines. This is probably a very good time to
negotiate a good deal.
These days analyzing Real Estate gives me a bit of a
headache so forgive me as I digress a bit. I've been
feeling philosophical lately and need to talk about it..
You're the lucky ONE.
As we assess the economic times we live in, the word
that comes to mind is.."Frustration". I can't speak for
everybody, but I know that the rising oil prices, real
estate blues, the falling dollar, climate change, etc,
etc, etc, seems to be giving everyone the blues these
days. Frustration is everywhere. Even the Polar Bears
are frustrated.
As I was meditating on this, what came to me was that in
times like these it's so important to learn how to tune
out all the "bad noise", and tune in to what's good in
our lives. It's so important to be thankful for the
things that do work. If it's our health, our
relationships, our kids, our dogs, whatever. If it
works, say "thanks", and feel grateful. It will make
you forget at least for a time, the things that appear
to be broken, or out of our control.
I watched a movie last night called "My Left Foot"
starring Daniel Day-Lewis in one of his earliest roles..
It's a true story about a young man stricken with
Cerebal Palsy from birth. After I watched that movie I
felt several different emotions. I felt awe and wonder
at what that man had to endure in his life and the grace
at which he did it. Two, I felt so darn thankful that I
had my own healthy body with all the working parts.
Three, I felt scared that someday, the health I took
for granted could possibly leave me due to illness,
disease, accident, whatever. I had never really
thought about it, but the fact that I can simply get up
out of a chair and walk across a room is a miracle that
I had taken for granted most of my life. Not everyone
can walk across a room, or even pierce their lips and
blow out a birthday candle without struggle. So look at
your legs, and your lips, and if they work, smile and be
thankful. Some folks aren't so lucky.
So stay positive in the face of negativity. Look for
the good.. I promise, it's there somewhere. And,
always, alway, always be thankful for your blessings.
Thank you for letting me share that. Until next
month...Let Freedom Ring and God Bless the Polar Bears,
Your Island Realtor, AnnMarie
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More
home buyers have a better chance now
than at any other time in nearly a half
decade to negotiate a home-buying deal
that costs less and comes with some
concessions thrown in.
In many locations, buyers will find a
glut of new homes, more motivated
sellers, foreclosures, auctions, short
sales and other market conditions that
can make it a really good time to buy.
That doesn't mean throw caution to
the wind.
Here's how to begin to navigate
today's housing market, step-by-step,
and make a good deal without getting
taken.
Begin with making a personal
"right-time-to-buy" decision. If you
stretch financially beyond your means to
go after lower-priced homes,
foreclosures or short sales, you could
be setting yourself up for failure.
Today's housing market is littered with
home owners who borrowed more than they
could afford.
On the other hand, if you wait for
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AHere's
some great news for the thousands of
real estate investors and brokers who
use "Section 1031" (ten thirty-one)
tax-deferred real exchanges every year:
Congress has backed off its latest plan
to narrow the definition of "like kind"
for real estate swaps.
That's important because under
current tax law, real estate investors
have broad flexibility in choosing
properties and structuring exchanges.
For example, they can exchange a rental
house for farmland, an apartment
building for a commercial shopping
strip. They can even exchange office
buildings for mineral rights.
Given the tight statutory timetables
to choose qualified properties for
exchanges, that flexibility can be
crucial.
Other types of investment assets, by
contrast, get much stricter treatment
under the tax code -- and that
difference in treatment opens the door
to periodic attempts by green-eyeshade
tax reformers on Capitol Hill to raise
federal revenues by cutting down the
number of eligible real estate
exchanges.
If you could only swap a rental condo
for another rental condo, cornfields for
cornfields or commercial buildings for
commercial buildings, there'd be a lot
fewer exchanges every year -- and
probably a lot more IRS audits of
taxpayers to make sure the properties
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Given
the long and bloody fight that culminated in the
nation's independence way back in 1776,
Americans still have a lot of U.S. flag flying
to do in 2008.
We are still at war for independence, though
not our own. We go to the polls this year to
elect a brand new president for the nation. And
there's always that good old American Dream.
It's not surprising then, that the 4th of
July is one of the hottest flag flying days of
the year, even though those who regularly pledge
allegiance by flying the flag at home aren't
always practicing correct flag etiquette.
Daily News and Advice
Read about the events shaping the Real
Estate market today, find current
interest rates, or browse the extensive
library of advice and how-to articles
written by some of the top experts in
Real Estate. Updated each weekday.
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More Articles
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When
most sellers list their home for
sale the first thing they think
about is how much will I get and
that is usually followed by how
soon will I get the money. It's
certainly understandable that
those two concerns are, most
often, top of mind. After all,
you're likely selling your home
to buy another one or invest the
money in something else. 
