Gary's Blog

Thursday, July 2, 2009

Local Real Estate & Economic Update

It was a great month for Coldwell Banker Island Properties! Last month, June '09, our four offices put 56 homes, condos, and land in escrow on Maui. Six to eight months ago, we were putting 3-4 units in escrow per month. One year ago, June '08, our company put 30 units in escrow. So activity is double this year over last! It looks like buyers have finally said "How low can it go???"

Economics in the news are a little hard to decipher. Bankruptcies are up 65% in the State of Hawaii for the first six months of '09 vs. the same period in '08. But unemployment figures are looking optimistic. And today's increase in the manufacturing index is a positive indicator.

Longer-term positive statistics come from the lack of construction spending. Nonresidential building is strong, but a decline in housing construction bodes well for long-term values. Demand may be down short-term, but we all know the pent-up demand eventually has to be met. And with little or no new construction taking place on our beautiful island, which direction do you think prices have to go when the market breaks loose?

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