Existing-Home Sales Fall...Again

Existing Home Sales Fall...Again

I am the Broker in Charge at RE/MAX in Honolulu.

I publish a monthly real estate report for Oahu on my website www.hawaiirealestatestatistics.com and Oceanic Cable here in Honolulu.

I think it is important to remember that although the news from the general press is bad concerning the Real Estate Market, it is primarily the Mortgage mess that made it so and not all Markets are the same. It is one thing to describe the current state of affairs across the country in depressing genralities but I think it is important a prospective Seller or Buyer keep in mind that not Markets are the same and not all Neighborhoods are the same.

The fall of the Dollar has given great strength to those markets that appeal to the International investor and Hawaii is but one example. Although sales have dropped here by -21% for '07 and continue to do so now, last month Oahu reported a gain of +42% increase in sales of Single Family Homes over Feb.'08 and the Median Sold Price for 2007 actually increased by +1%.

Much of the recent increased activity is due the Dollar valuation against World Currencies, but mostly it is the low interest rates that are attracting well qualified buyers to the market. One must also remember that if you don't have a credit score of over 760 and better yet, 800, you are not going to get a loan anymore without having to plunk down a ton of cash. So, with a +42% increase in sales in March '08 I think it safe to assume the majority are 'well qualified buyers' or cash buyers.

Not all Real Estate News is bad. Look around. Do your research and you will find great opportunity out there.

Much Aloha,

Mike Gallagher

Broker in Charge, RE/MAX Honolulu

Mike Gallagher of HI @ Apr 23, 2008 10:19:52 AM