A couple weeks ago, a page one story on the Honolulu Star-Advertiser screamed about the stagnant Hawaii real estate market. The main premises were twofold:
1. Whatever gains the market had given at the turn of the year and into 2011 were basically wiped out
2. Instead of the rebound that was earlier anticipated, another dip appears on the horizon between now and the end of the year
Needless to say, this news was quite disappointing for some folks. Some may have been hoping for the rebound that was earlier called for to finally sell their house or condo, but may have instead decided to wait out these doldrums we’re in. Others may have been hoping to climb out of a zero-equity situation but instead must look at loan modifications and/or short sales. Regardless of the reason, many just aren’t selling in these flat times which is keeping inventory on the islands low, according to the article.
SO WHAT DOES THAT MEAN FOR INVESTORS?
Well, low prices and interest rates are nothing new. We’ve been seeing these for quite some time now. But unless you’re good at marketing for great rehab deals (or connect up with someone who does) or want to get into short sales, your best bet is to have a long-term vision. With the thought of a second decline in the market reaching us sometime in the fall, it really demands a long-term strategy if you’re looking to buy property. We really don’t know when the market is going to come back up. It could be next year or 5 years from now. Trying to time it is almost a sure sign of impending doom.
There are absolutely great deals to be had out there. Just make sure you match the right property with your individual real estate investment goals. Your strategy could be different than your neighbor’s, so stay focused and avoid some of the outside ‘noise’.
If you want access to some of the deals BEFORE they hit the open market and can close quickly, then definitely get on my ***VIP Buyers List***. Just click that link. No spam, just deals!
ALOHA,
Mike