Just in case any of you missed the article…
Hawaii foreclosures up 134% in October
Hawaii Life agents, what does this mean moving forward? Will foreclosure rates continue to grow?
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Erik Hinshaw R(S)
November 23, 2009
I think so but something strange is happening here in Kona. While foreclosure rates rise the number of REO bank owned properties being release to the market seems to be getting smaller. It is getting to the point where it is hard to find any to show. If this keeps up prices might actually begin to rise. Perhaps that is what the banks are waiting for. Anyone else seeing this on other islands?
Erik Hinshaw R(S)
November 23, 2009
I think so but something strange is happening here in Kona. While foreclosure rates rise the number of REO bank owned properties being release to the market seems to be getting smaller. It is getting to the point where it is hard to find any to show. If this keeps up prices might actually begin to rise. Perhaps that is what the banks are waiting for. Anyone else seeing this on other islands?
Katie Minkus, R(BIC)
November 24, 2009
Aloha, Justin. You ask an intriguing question. Although Hawaii’s foreclosure rate has jumped 134% compared to this time last year, the actual number of foreclosures was just over 900 for all the islands combined. With over 5100 active listings on the on the Big Island alone, (and over 2100 BI properties sold so far this year), 900 foreclosures for the state doesn’t seem like anything to be too alarmed about, especially given the state of the economy! That being said, like most statistics, past performance is not necessarily a good predictor of future behavior. I believe it’s impossible to anticipate what is going to happen moving forward, especially when most Hawaii markets are completely different than traditional mainland markets. On the outer islands especially, where we operate mostly in a “resort market” we’re heading right into our busiest time of the year – the winter selling “season.” What Erik says is absolutely true, we’re seeing it at the high end as well where they’re raising the prices at Hualalai Four Seasons and Kukio resorts. Why? The Brokers there say it’s because they had such great sales this year versus what they expected. I suspect it’s because they’ve sold through most of the “distressed properties” that have been keeping downward price pressure on the properties. With the “competition” gone, sellers in these luxury resorts can theoretically go back to asking “what they want” and getting buyers to pay it.
Katie Minkus, R(BIC)
November 24, 2009
Aloha, Justin. You ask an intriguing question. Although Hawaii’s foreclosure rate has jumped 134% compared to this time last year, the actual number of foreclosures was just over 900 for all the islands combined. With over 5100 active listings on the on the Big Island alone, (and over 2100 BI properties sold so far this year), 900 foreclosures for the state doesn’t seem like anything to be too alarmed about, especially given the state of the economy! That being said, like most statistics, past performance is not necessarily a good predictor of future behavior. I believe it’s impossible to anticipate what is going to happen moving forward, especially when most Hawaii markets are completely different than traditional mainland markets. On the outer islands especially, where we operate mostly in a “resort market” we’re heading right into our busiest time of the year – the winter selling “season.” What Erik says is absolutely true, we’re seeing it at the high end as well where they’re raising the prices at Hualalai Four Seasons and Kukio resorts. Why? The Brokers there say it’s because they had such great sales this year versus what they expected. I suspect it’s because they’ve sold through most of the “distressed properties” that have been keeping downward price pressure on the properties. With the “competition” gone, sellers in these luxury resorts can theoretically go back to asking “what they want” and getting buyers to pay it.
Beth Thoma Robinson, R(S)
November 24, 2009
I also think that as prospective buyers have become more comfortable with the uncertainty and patience required for a short sale, and we agents have become more skillful at getting short sales approved and closed, that properties which might have ended up as foreclosures are being sold as short sales. In the resort and North Kohala markets I follow, I wouldn’t be surprised to see more short sales, fewer new REOs–and then as Katie suggests, an actual upturn in prices as the distressed inventory gets worked through relatively quickly. But maybe Hawaii Life is unusual in the number of escrows we have in progress!
Beth Thoma Robinson, R(S)
November 24, 2009
I also think that as prospective buyers have become more comfortable with the uncertainty and patience required for a short sale, and we agents have become more skillful at getting short sales approved and closed, that properties which might have ended up as foreclosures are being sold as short sales. In the resort and North Kohala markets I follow, I wouldn’t be surprised to see more short sales, fewer new REOs–and then as Katie suggests, an actual upturn in prices as the distressed inventory gets worked through relatively quickly. But maybe Hawaii Life is unusual in the number of escrows we have in progress!