KHNL video report titled “Troubled Economy Rattles Hawaii’s Real Estate Market.”
From the Story, some bad news for owners of subprime mortgages, and a opportunity for buyers:
“The Ewa market’s new developments and price-points attracted many New Home Buyers. Many Home Buyers maximized their buying power by taking on adjustable loans that required little to no down payments so that they could get into the house. Statistically, historical defaults in the mortgage market are directly correlated to the size of the down payment. First time home buyers really don’t have a lot of money to put down so their down payment is low which leads to higher monthly payments and they’re more prone to default,” said Prudential Executive Vice President Dan Tabori.
But in real estate, a seller’s loss is a buyer’s gain.
“It’s not a bad time to buy. You could actually get probably something today that you couldn’t get two years ago, a bigger house for less,” said Ching.
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