Hawaii foreclosures increase a bit

Haven't they gone up everywhere?  Honolulu statistics for the first quarter show 155 foreclosure filings this year (January through March) versus 102 during the same period last year.  That's an increase of 52% - the increase percentage sounds ominous, however the number of forclosures versus households is still very small.  Honolulu has the second lowest foreclosure rate in the U.S!

Why aren't we getting hit?

What's so special about this place?  We got smoked back in the mid-1990's after the Japanese bubble burst.  Some people actually walked away from their houses and let the banks take them back.  Note that the people doing so were in neighborhoods away from downtown Honolulu.  Homes in Honolulu are just too valuable for people to toss the keys to the bank.

Hawaii has done pretty well so far because local banks are more conservative and owner occupancy rates maybe higher than other U.S. cities.  We also have a stable job market with low unemployment.  With our dollar's weakness these days, Hawaii is also an attractive place for people from Canada,  Asia and Europe to buy second homes.  

With limited land to build on, high-demand areas like Honolulu have high prices. Some people are waiting for Oahu's market to crash.  It doesn't appear likely.  Even people moving here from Maui and the Big Island find Oahu's prices high.  Oahu has more jobs and more fun things to do!

Will Hawaii see more foreclosures?

We might have more problems coming ahead.  In March, Molokai Ranch and then Aloha Airlines shut down operations, putting approximately 2,500 people out of work.  Most of the people who lost jobs on Oahu were able to find new employment quickly because of our low unemployment rate.  Some senior pilots (the ones who make the big bucks) may have moved from Hawaii or taken pay cuts in their search for new jobs.

Although there is pessimism about housing prices, people continue to seek homes on Oahu and especially in Honolulu.  The qualilty of life here is a big factor.  Clean air, nice beaches and proximity to most of the island's jobs make Honolulu an attractive place.  Even if things get worse, most of the foreclosures will not occur in the better neighborhoods.  Anyone who bought a house three or more years ago here probably has equity and can sell (if necessary) to avoid foreclosure.

Preforeclosure listing coming up

We will be listing a home in Honolulu, located at the top of Punchbowl (Makiki area) next week.  This property was purchased in January 2007 for $810,000.  The owners moved to another island and rented the house out.  They have received notice of nonjudicial foreclosure and we're listing the house as a short sale for $750,000.  That's $60,000 less than their purchase price a little over a year ago.

Some great things about this house:

• The land is apartment zoned.  Someday a developer may wish to purchase this and adjacent parcels to build a high rise.
• The house has separate upstairs and downstairs units.  Three bedrooms, two baths upstairs and two bedrooms, one bath downstairs.  Because of the apartment zoning, this house has two full kitchens.  (Residential zoning does not permit two full kitchens in a house of this size).
• Interior area is approximately 1,668 square feet.  The lot size is 2,400 square feet and it is well laid out.
• Although it's and old house, it was completely remodeled in 2006-2007.
• Rental income is approximately $3,500 per month.

Watch for the listing around May 6th, 2008 or contact Mike Bates direct for more information.

Aloha, Mike Bates

Oahu homes for sale

Hawaii foreclosures

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: