|
|
|
| | | Patty Chaney Blog
Maui Real Estate News and Maui Lifestyle News | Paul Brewbaker - Economist from Bank of Hawaii
Economic Update 2008
July 25, 2008 | On Friday July 18th, I attended our quarterly (Realtor’s Association of Maui) membership meeting to hear Paul Brewbaker, Economist for Bank of Hawai’i share his latest forecast on the health of Hawaii’s economy. Brewbaker counseled the audience of 350 Realtors to continue to expect the unexpected. Hawaii has been hit with a trisect of economic misfortunes.
1) Increase in oil prices
2) Sub-prime meltdown
3) Airline industry closures
Oil prices reaching $140 per barrel has affected every facet of industry in the islands.
ATA and Aloha Airline closures caused hardship on second homeowners and higher ticket fares.
Sub-prime loans are greatly to blame for the rate of inflation of home prices and now the rapid decline of values. Financial institutions have tightened their lending criteria considerably. Most conventional lenders require a minimum of 20% down with other requiring 25% down. Credit scores have to be stellar.
From April 2007 the average home price in Hawai’i has declined 19%. Neighbor islands are seeing a greater impact in downward cycle than O’ahu caused by over speculation and development . The median average home price was $645,000 for the first half of 2007. For the first half of 2008, the median home price is $583,500. California has seen a 10 to 22% decline real estate pricing. Maui’s real estate market historically has followed the California market.
The good news, according to Brewbaker, is that the economy should probably recover sooner than the downturn of the 90’s. When will we see a recovery? That was the million dollar question that we all wished he would answer. October 12, 2010? October 24, 2012? These dates are just arbitrary numbers according to Brewbaker. Another 6 to 18 months of correction Perhaps? Watch the video, it's entertaining and informative.
See Paul Brewbaker's PowerPoint presentation. | Posted in categories: [Maui News in Real Estate] |
| | Maui News in Real Estate | - November 17, 2008 - October Sales Statistics
- August 08, 2008 - Island Sotheby's International Realty - The Shops at Wailea
- July 25, 2008 - Paul Brewbaker - Economist from Bank of Hawaii
- June 20, 2008 - May 2008 Maui Real Estate Sales Statistics
- April 09, 2008 - Mayor Tavares signs Honua'ula Land Bill
- February 23, 2008 - Mauian's Polled about Vacation Rentals
- August 30, 2007 - Island Sotheby's International Realty
- April 06, 2007 - Fractional Ownership in Hawai'i
- February 10, 2007 - Makena Resort sold for $575 million
- January 19, 2007 - Morgan Stanley buys Grand Wailea Resort
- January 19, 2007 - Ultra High End Sales
| | |
 |
|
