There's opportunity in Hawaii's housing market

I've noticed a trend lately and it's a good one for buyers. We go out, look at homes, the buyer thinks about it and the homes are still on the market! Only the most appealing homes are selling quickly. I define appeal as a combination of the home's condition and it's price.

Many mainland markets may have been in this situation for years. Oahu's sales volume has declined about 50% since 2005, however good homes for sale in Honolulu still generally sell quickly. The recent financial meltdown certainly has caused some problems lately.

My wife's cousin had their $1 million house in Kailua in escrow and the buyer pulled out on the day he was to sign documents at escrow. That was a week ago, we'll see if the deal will be salvaged or if the home goes back on the market. I have a feeling the sellers will need to reduce the price if they have to go out and seek new offers.

Getting back to buyers - I've been working with two lately. One has identified a couple of properties she likes. She's getting her money ready and taking her time. The properties aren't going anywhere! The other is looking at a few homes and waiting for the days on market to increase so he can offer a price significantly below asking - and these homes aren't moving either. If the trend continues and they might get some exceptional deals!

Comparing housing with the financial markets, don't you wish you bought a load of stocks last Friday 10/10/08 and sold them on Monday 10/13/08, when we had the largest point gain for the Dow Jones Industrial Average in history? It would have been easy money.

Stocks can be sold much quicker than homes. Stocks and homes have a similar characteristic: On average, they both increase in value over time. Homes have a better characteristic: They are more than just pieces of paper, they are tangible property that you can live in.

If you're looking for income opportunities and have cash, watch Hawaii's housing market.

Aloha, Mike