Hawaii Real Estate
Out of the fifty states in this nation, Hawaii is perhaps one of the most economically stable. Actually, not only is it stable, but it is also making a slow, steady recovery. Over the past year, more than 5,000 workers have been employed, more than 3,000 people have been taken off the unemployed list, and several thousand jobs have been created. This past month has continued to show such a positive trend.
Hawaii’s unemployment rate is at a stable, incredibly low (for this economy) 6.3%. In fact, there are only seven other states that can boast of a lower unemployment rate, and Hawaii is more economically active than those seven. In contrast to this stability, though, the housing market in the state seems to be rather volatile.
The difference in change in price for Hawaii foreclosures is vast, though the majority of the cities in the state have shown a decrease in price over the past month. This indicates that Hawaii’s housing market may be the only part of its economy that is sliding downhill, however very slightly.
As with many states, the capital of Hawaii is one of the few cities in which the housing market is not declining. Honolulu foreclosures have increased in price over the past month by 0.54%. This is by no means a large increase. Honolulu’s housing market, as indicated by this statistic, seems to be rather stationary. It is not failing, but neither is it growing. Unfortunately for Hawaii, the fact that this is one of the leading cities in terms of housing prices shows that true economic recovery is still several years away.
Unlike the relatively stable Honolulu, some of Hawaii’s cities are facing a potential housing crisis. One such city is Lahaina, with a foreclosure price change of -44.30%. Such an extreme figure shows that the housing market is very weak and unstable at the present time. Kailua foreclosures face a similar problem, though to a lesser extent, where the change is -35.23%. Aeia follows quite considerably behind with a price change of -11.44%, and then Kailua Kona at -10.80%. The most stable decrease is demonstrated by Kapaa foreclosures, with a change of -5.14%.
Recently, a report was released that shows an increase in spending in Hawaii as a result of the improved economy. According to this report, spending on travel, in convenience stores, vehicles, and hotels is up 18%, 17%, 15%, and 15%, respectively. Spending on home improvement and housing was also up by about 14%. This may indicate that the housing problems evident in many cities across the state will soon be resolved.
All this increase is taking place despite fears that the situation in Japan would hinder Hawaii’s recovery. On another note, the foreclosure rate across Hawaii has decreased by about 2% over the last month or so. However, this is insignificant in comparison to the large proportion of foreclosures in the state. Hawaii is actually ranked tenth in the country for foreclosure rates. Hawaii foreclosures have affected the housing market both for homes purchased and homes rented.
Condominiums, ever popular in a tourist destination like Hawaii, have dropped in price by nearly $100,000 in the past year. Many cities have shown increased levels of foreclosure, despite the statewide average decrease. Maui County, though, is a light in the dark, with a 16% decrease in foreclosures in the past twelve months.
However, this housing issue has not, as is shown by the increased spending, prevented Hawaii’s economic recovery—a recovery that the rest of the United States would be happy to emulate if it were just able to do so.
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