Gary's Blog

Friday, May 28, 2010

Southern California Rebounds!

It is easy to predict the future when it comes to Maui real estate. Take a look at the Southern California market six months earlier, and you know what is to come.

California State University Fullerton (my Alma mater) has been publishing a Southern California Leading Economic Indicator index for decades. The most recent 0.87 percent increase in the index for the first quarter was the biggest jump since the first quarter of 2004, and suggests a boost in regional economic activity over the next three to six months. The employment component of the indicator also signals growth. This sector just saw its first increase since the third quarter of 2007.

We just had an interesting election to replace Abercrombie in the U.S. House of Representatives. Republican Charles Djou just became the newest member. He will need to win the GOP primary and election later this year in order to retain his seat. This is a clear signal to Washington that even Hawaii, one of the most liberal states in the nation, and birthplace (?) of President Barrack Obama, is not happy with status quo in Washington.

Good statistics in home sales- sales of existing homes rose 7.6% in April from a year ago. That sparked a 4% increase in new home prices.

Jobless rates declined in 34 states and the District of Columbia in April. Only six states reported higher rates, and 10 states remained the same.

Mortgage rates are near all-time lows, under 5% now, thanks to the big scare in the European Community. The record was 4.83% in December, so I would suggest we can expect rates are about as low as we can hope for. What a great time to be a buyer of Maui real estate!

For example, a Wailea Palms unit just went on the market for 499k! Unheard of prices out there, motivated sellers, and low interest rates make this a prime time to buy.

Call me and I'll shoot you my list of short sales, REOs and super-steals!

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