We had dueling headlines yesterday morning in the Hawaii papers about June foreclosures. One is positive:
“Hawaii ranks 45th in Foreclosures” July 10th Article from Star-Bulletin.
The other is negative:
“Foreclosures up again from last year” Source: July 10th Honolulu Advertiser
What’s very curious is that they are reporting on the exact same set of statistics from a recent survey from Realtytrac.
The Glass Half Full Approach:
Let’s start with the positive one from the Star Bulletin (“Hawaii ranks 45th in Foreclosures”), the accurate one. This is the only article of the two that includes quotes from Realtytrac’s people. It’s encouraging that the writer who actually listened to the report’s author comes away with a more positive outlook.
The Star-Bulletin article states that Hawaii is 45th out of 50 States in the number of foreclosures and that foreclosures in June were down 17% from May. In the article, Realtytrac’s spokesman asserts that foreclosures aren’t a major threat to the market.
Headlines aside, we should take an objective, quantitative look at Hawaii’s foreclosure rate versus a market that is actually suffering. The difference is staggering: In Hawaii we only have 1 foreclosure for every 3,732 households. In Nevada, it is 1 for every 122 households, now that’s ugly!
The Glass is Half Empty Approach:
The dark side has spoken, and this time it’s the Honolulu Advertiser – oh no, foreclosures are up from a year ago! And what’s worse – they are up again. Not just up once, but up again, and again, and again. They had enough room. They could have added some additional ‘agains’. See, being up is not bad enough, being ‘up again’ is much worse. You must understand these things.
The article says that
“Hawaii’s foreclosure count continues what has been a steady rise in troubled mortgages.”
This is not the case. Recall that foreclosures are actually down 17% from May to June. Futhermore, Hawaii foreclosures were down 22% from April to May (Pacific Business News, June 13, 2008).
Fortunately, these numbers suggest a very encouraging trend. Unfortunately, these numbers make it harder for the reporter to tell the simplest, most sensational story-so of course they are omitted from the article, and a lot of readers are left in the dark.
Bottom line, foreclosures are not a big issue in Hawaii. We are consistently near the bottom in the number of foreclosures and they are too few to have an effect on our real estate market.
July 12th, 2008 at 9:47 pm
Let’s get out of the Dark Side! The Glass IS half FULL. . . The proof is in the numbers. Hawaii IS UNIQUE.
However, we are not immune to the strict lending practices that have become common-place all over the US. I’m helping buyers now under super scrutiny, where just 2 months ago, they were considered pre-approved. I’ve found the perfect home for them and negotiated a great price & now the ball is in the lender’s court . . .Yes, lending policies are changing fast due to the foreclosure stats in the US. Therefore, we need to find reputable lenders who will give honest and realistic advice, whether in the mainland or in Hawaii.
Ultimately, buyers need to be honest about their financial situation and be educated by their professionals, the Realtor and the Mortgage Consultant. Don’t be afraid to ask a lot of questions and then listen very carefully.
July 22nd, 2008 at 4:08 am
The newspapers really know how to put a spin on things!