Just returned from the Hawaii Association of Realtors annual gathering on Oahu. Attended well attended break-out session with Lawrence Yun, Chief Economist for the National Association of Realtors. The joking introduction – Economists predicting the future happened so Astrology could look good. Following that caveat Mr. Yun did his best to let us know what is happening. He had been in many circles in Washington and had impressive connections.
A few highlights-
Home Prices in the next few years should go up slightly. There is still a backlog of foreclosure inventory to come on the market. International Buyers are cashing in on the weak US Dollar and Hawaii is well positioned for this international market and that will help property values stay strong.
Good time to be a landlord as rents are rising and Real Estate is affordable.
Banks have lots of cash. Banks are currently requiring credit scores to be 15 to 20 points higher than any time in the last decade. If Banks were not so tight and made safe loans based on the slightly lower FICO scores, there would be 20 – 25% more sales.
Smart Money Is going into Real Estate. There is broad inflationary pressure. With values on the Stock Market – and even of gold – fluctuating, the low price of Real Estate becomes a very good bet against the inflation.
Over all it’s a Great time to buy.