Kona Kohala Blog

WEST HAWAII REAL ESTATE:  Fewer new listings coming on the market that are not bank owned or short sales.  With those two categories setting the prices, it's hard for someone not in trouble to compete.  The banks know they have a majority stake in most markets and just like with their loans, they're quite content sitting back and calling the shots.

That's good news for buyers as lower and lower prices keep popping up in both North Kona and South Kohala.  At this morning's broker's caravan meeting it was announced that an Alii Lani 3 bedroom, 2 bath condo was on the market at $159,000 which is at or below the original selling price.  Even someone who bought a similar condo new and didn't refinance or encumber the property in any way could not compete with that price even 9 years later. 

We're beginning to see more of the properties priced over $750K  in Kona and Keauhou showing up as short sales and REO's, Real Estate Owned aka foreclosures.  This recession isn't skipping anyone.  This is making such properties very attractive to would be buyers but they better have their financing lined up.  Even for people with good incomes, good credit scores and money in the bank, a loan is not a sure thing.

Most of those buying in right now in west Hawaii are those who have been around for a while and are financially well positioned.  There are plenty of good homes to choose from if you've got the money.  The first time home buyer, assuming they can get a loan, has plenty to choose from also.  The trick there is meeting with lenders and getting their loan in order with some guarantee of funding.  There are many good homes under $400K and good condos under $300K, also many under $200K.

It's a great time to buy but you do want to get your ducks in a row early on.  Contact me and I'll send you a list of what you need to do and when in order to stand a good chance of making it through the battle field that is home loans today.

POLITICS:  How are these for headlines?  Oil Import Prices Up 2%.  Nearly 60% of population thinks country headed in wrong direction.  Unemployment stuck at 9.5%.  Jobless claims up to 484,000, expected 469,000.  Deficit adds $165 Billion in July.  In Fiscal 2010 government spent $1.169 Trillion more than it made.  July interest payment on national debt at $19.9 Billion.

Unfortunately, it's not that hard for us to believe that those come out of our country, the U.S.A.  We're so used to hearing bad news and so used to hearing the number BILLION that it's enormity is being lost on us.

Here are some comparisons; a billion seconds ago was 1959.  A billion minutes ago, Jesus was alive.  A billion hours ago our ancestors were in the stone age.  A billion dollars ago was just 8 hours and 20 minutes at the current rate our government is spending money.

What's the difference between a million, a billion and a trillion, by the way, even mathematicians don't use the word trillion, only politicians do.  A million seconds is 12 days.  A billion seconds is 31 years.  A trillion seconds is 31,688 years.  Mind boggling isn't it?

Neither party today seems to understand how hard you and I have to work to produce that much money in revenues for them to blow through.  Did you know that Billions of dollars of stimulus money is unaccounted for.  Not only that, no one is looking for it.

It really is time to throw them all out.  How much worse could a bunch of rookies do?