It’s time for some good old media hysteria. As mentioned in the Honolulu Star Bulletin on Wednesday, May 14, 2008

Hawaii’s foreclosure rate tripled in April, with a 218 percent increase over the year-earlier period.
The state climbed to 36th in a national foreclosure ranking last month, with 210 foreclosures filed, or one for every 2,381 households,

My god, foreclosures up 218%! It’s time to build a bomb shelter and store food. In fact, curl into a ball right now and play dead, just in case there are any bears in the area.

The article says that Hawaii is experiencing a “relatively small number” of foreclosures. This is a tremendous understatement: 1 out of 519 US homes are in foreclosure, only 1 out of 2381 Hawaii homes are in foreclosure.

We’re in good shape with regard to foreclosures. You don’t have to be a rocket scientist to figure this out. (Although a research background in non-jet propulsion can help in any situation)

The outlook on Oahu is even better than the outlook for the state as a whole: UH’s Economist says that he thinks that the 218% increase mostly represents neighbor-island foreclosures. Among those, he says, many are probably mainland second-home buyers.

Don’t let these headlines scare you. We’re OK.

Post from: Hawaii Real Estate Reporter

Foreclosures up: “Okay, on my word, everybody panic. Wait for it . . . wait for it . . . GO!”