The Honolulu Advertiser is reporting a plausible spike in home values in the next several years. Though the purported increase will not take effect until 2012 at the earliest, real estate experts do not advocate procrastination in market activity.
Several factors, such as interest rates, credit availability, the depth of the foreclosure problem and growth in jobs and personal income will play into whether home prices get pushed up again and to what degree. So a run-up in prices isn’t certain.
Home production, however, can be a major influence on prices, and residential building permits statewide last year sank to their lowest level since at least 1980, according to state statistics. Older statistics weren’t available.
Paul Brewbaker of local consulting firm TZ Economics said home prices could “light up” in two or three years based on the dearth of residential building permits from homebuilders last year.
Real Estate predictions made several years in advance often hold little validity due to the inherent volatility of the industry. Despite this, whenever a term as loaded as ’spike’ is used, one cannot help but take notice. Additionally, an expected dramatic rise in population which will be showcased in this year’s census will increase the demand for housing on Oahu. Because of 2008’s credit crisis, this shortage has only been magnified through investors reluctance to facilitate new home projects. Many experts in the real estate field are encouraging buyers to take advantage of the projected relatively flat rates over the next several months in order to avoid what could very well be a hostile buyer’s market in the years to come.
You may access the entire article here: Spike in Hawaii home prices on the horizon
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