Recent newspaper and television reports have disclosed that nearly 12 percent of Hawai’i homes are in foreclosure or threatened by foreclosure statewide. These foreclosures represented 1 percent of the market where the national average was 1.14 percent. Compared with other states and the District of Columbia, Hawai’i had the 14th highest percentage of foreclosures starts during the fourth quarter of 2009.

The state with the highest rate of foreclosure starts was Nevada, at 3 percent of the market.

Some economists suggest that the nation’s wave of foreclosures may be starting to end as evidenced by the percentage of loans that are 30 days past due. The figure fell from 3.79 percent in the third quarter of 2009 to 3.63 percent in the fourth. Which, statiscally, represents a big decline. That’s the bright side.

Buyers are finding well-priced real estate at the high end and low end of the market. The middle of the market still remains slow. Investor buyers are coming back as they are able to free up equity from properties that are selling in other parts of the nation.

It is a great time to be buy Hawai’i real estate.

In the grocery store aisle, at the Super Bowl party, over lunch, at the Post Office the first thing people ask me is “How’s the Market?”

Well, it’s BETTER.   Much better, in fact.  Especially if you are a Buyer.   Many of those potential Buyers that spent 2009 eyeing the market are now seriously shopping and making purchases with cash.  Yes, cash.  This in an environment where interest rates on good, safe, fixed rate loans are really low.

The second question, of course, is, “Do you think prices will go down more?”   Maybe.  In certain locations.  But the thing that drives prices up is already happening.  That is a reduction in inventory.   As the deals are grabbed, the inventory shrinks.  Eventually that tips to the benefit of potential Sellers.   All about supply and demand.

We at Windermere/ C and H Properties want to be available to answer your questions.  And here is the forum for you to tell us what you want to know about real estate on the island of Hawaii.    Let us know what you want to hear about and we’ll send it your way.

Mahalo.