Half-million-dollar housing

[Miulang]

Re: Half-million-dollar housing

Chief Economist Alan Greenspan sayeth there be not a national housing bubble, but there beith local bubbles that will inevitably soon burst. Methinks one of those local bubbles is going to be Hawai'i, where people are buying second homes and investment property and where many people are getting themselves in over their heads with low cost ARMs that will put them into foreclosure once the mortgage rates go up.

Miulang

[pzarquon]

Re: Half-million-dollar housing

Hawaii posts second-highest home prices in the country
Allison Schaefers, Honolulu Star-Bulletin, Wednesday, May 25, 2005

Hawaii had the second-priciest homes in the country in 2003, after California, according to a nationwide housing survey released yesterday by the U.S. Census Bureau. Hawaii residents who took part in the home value portion of the U.S. Census Bureau's American Community Survey two years ago indicated they thought their house or apartment would sell for a median of $302,300...

The median sales price of a home on Oahu was $399,000 in December 2003, according to the board. Condominiums sold for a median of $180,000... Last month, median single-family home prices were highest on Maui, where more than 50 percent of the homes sold for more than $696,000. The median home price on Oahu in April hit a record $545,000 and homes on Kauai followed closely at $540,000. The Big Island median price rose to $370,000.

[mel]

Re: Half-million-dollar housing

The price of a new home will go even higher after a Democrat supported bill to raise the conveyance tax on all properties over $600,000 becomes law. When will the taxing madness stop? Hawaii is already one of the highest cost of living states in the U.S. We don't need more taxes!

[Glen Miyashiro]

Re: Half-million-dollar housing

Now the median O'ahu resale price is $610,000.

"The fundamental sources of strength in housing demand are real, not imaginary, so this is not a bubble," Brewbaker said.

"Is it a bubble? This ain't no stinkin' bubble."

[Paul Brewbaker, Bank of Hawaii economist]
(Honolulu Star-Bulletin, 6/3/05)

[Miulang]

Re: Half-million-dollar housing

Now the median O'ahu resale price is $610,000.

Heh. Maybe it's a conspiracy by the State government to increase tax income since the conveyance tax on houses > $600k is going up!

Miulang

[Miulang]

Re: Half-million-dollar housing

Now the median O'ahu resale price is $610,000.

Heh. Maybe it's a conspiracy by the State government to increase tax income since the conveyance tax on houses > $600k is going up so more real estate will be nonexempt!

Miulang

[HomegrownHawaii.com]

Re: Half-million-dollar housing

Today's Advertiser had a pretty interesting article regarding the housing crunch in Hawaii. A realtor in the article recently purchased a 1 bedroom condo after losing 17 pervious bids, one of which he lost after asking $50,000 over the asking price. Hard to believe that Hawaii could/can get anymore expensive.

[ahola]

Re: Half-million-dollar housing

In 2004 total residential mortgage debt outstanding grew by 13.2% to $8.7 trillion, the fastest rate of annual growth since 1986 and is now greater than our Federal government debt.
23% of all residential home sales in 2004 were for investment purposes.
Speculators are using interest only and adjustable rate loans to buy up overpriced properties with negative cash flows.

Las Vegas was up more than 50 percent in 2004 and several California and Florida regions gained 30 percent or more which
far surpass increases in personal income (5.8 percent) and rental prices (2.7 percent).

Fannie Mae and Freddie Mac have come into the limelight with serious accounting scandals that have forced them to restate earnings for previous years proving a negative effect in the billions of dollars.

The real estate bubble is swimming upstream in a downstream economy and with a glut of mortgage debt.New mortgage lending practices have led to more highly leveraged home buying have introduced a fundamental change to the housing market.If interest rates climb rapidly, it could leave many homeowners with far larger monthly mortgage payments than they have now. If that happens, it would add inventory to the market, forcing prices down and instead of housing busts resulting in small price downturns we may see large percentage losses.

When the crowd believes prices can't fall and line up to bid auction style on properties that a couple years earlier would have been on the market for six months,it is the beginning of the end of any asset bubble.

Stay in the vulture position with cash in hand and wait for the bubble to start bursting pretty soon and you will be able to steal these at rockbottom prices.Don't follow the herd and just let them try to outbid each other on the properties.They will regret winning the bidding war and will have to deal with bankruptcies and foreclosures.Just swoop in and snap them up when the bubble starts to deflate.Then rent them for a positive cash flow and hold until they go back up.

[kimo55]

Re: Half-million-dollar housing

In 2004 total residential mortgage debt outstanding grew....

or go here for the full story

http://www.zealllc.com/2005/rebubble2.htm

http://www.321gold.com/editorials/wr...ght052705.html

http://www.reiclub.com/forums/index....;threadid=5423

http://money.cnn.com/2005/05/03/real...ing/boom_bust/

[LikaNui]

Re: Half-million-dollar housing

or go here for the full story [/url]

I hate to go off-topic, but... welcome back, Kimo! We've missed ya around here!

[kimo55]

Re: Half-million-dollar housing

I hate to go off-topic, but... welcome back, Kimo! We've missed ya around here!

....at da risk of another possible exile for going off topic again, I will say:
mahalos, mahalos fo dat!




(the irrepressible Kimo. can't hold back. gotta sing. gotta dance. azzwhy hahd, eh?!)

[memorylane]

Re: Half-million-dollar housing

My theory for the high prices: ITS HAWAII! I'd dang sure pay it if i had it.
I have always wondered this, hopefully not too OT.......why are the homes *stars* live in so so high???? Is it because its Cali and simply because its known that they have that kind of money?
I find home like Sting over in England for instance, basically CASTLES for only a few mil compared to 16 mil payed by so and so.....

[dick]

Re: Half-million-dollar housing

Based purely on principle, I will never buy a house/apartment in Hawaii (not at these inflated prices). People are completely out of their minds to be paying that kind of money for (the most part) veritable shacks. As soon as a better job on the mainland comes along, I am so out of here. And yes, I'm born and raised here, and lived away and came back only to face this farce of a situation. Hell, if I stayed in Idaho, I would have had by now a huge house for a fraction of what I could get here. Hell, if I stayed in Tokyo I could have actually afforded to buy a place there. There are idiots out there who will actually get sucked up into the hype and go and spend half a mil to buy a piece of crap. I can only pray that this really is a bubble so I can sit smug and see all these clowns who are fueling this fiasco go down in flames. You get what you deserve.

[pzarquon]

Re: Half-million-dollar housing

I hope it's a bubble, too, but for some strange reason, even if there is a pop or crash, I doubt it's going to offer much relief. At this point, it looks like my choices are Waianae, rural Big Island, or Pacific Northwest. I'm aiming for the Big Island.

I'm sure happy for, and jealous of, those folks I know who snapped up places ten years ago for $290,000. Now they're sitting on (or living in!) gold mines! The taxes have gotta suck, sure... but renting sucks more.

[AuntieNellieKulolo]

Re: Half-million-dollar housing

My theory for the high prices: ITS HAWAII! I'd dang sure pay it if i had it.
I have always wondered this, hopefully not too OT.......why are the homes *stars* live in so so high???? Is it because its Cali and simply because its known that they have that kind of money?
I find home like Sting over in England for instance, basically CASTLES for only a few mil compared to 16 mil payed by so and so.....

It seems like housing prices are insane anywhere somebody would actually want to live: NYC area, SF Bay, San Diego(the craziest housing market according to the latest issue of Money mag), etc. Anywhere there are jobs and cultural amenities and/or good climate.