Kona Kohala Blog

March came in like a lamb and went out in pretty much the same form.  North Kohala had one higher end home sell which skewed the statistics there showing a 115% increase in the median price but for the year they are still down over <28%>.  South Kohala Single Family Residence (SFR) median price was down <6.99%> in March and <20.98%> year to date.  In North Kona SFR median price is down <7.1%> and <19.62%> for the year.

Market activity is down with the exception of North Kohala where March's one sale equalled last year's one sale so no loss or gain there.  In South Kohala the SFR number of sales was down just <5.88%> and North Kona was down <29.63%>.  Condo activity is still taking a big hit with South Kohala sales down <72.73%> year to date and North Kona down <38.3%> for the year.

Prices are still coming down, interest rates remain low and there's lots of property to choose from.  This will not continue, it never has.  Now is the time to consider owning real property as part of a balanced portfolio or for some of you, a great time to buy that retirement home or condo, maybe even a first home.  Call us so we can get you started, 808-896-0661 or email Robert@FerrariPacificRealty.com.

If you have a variable rate Home Equity line now is a good time to pay it off.  Interest rates are supposed to stay down now that the fed is buying toxic holdings and Mortgage Backed Securities (MBS's) but don't bet on it.  As property prices continue to slide, the banks are going to begin slowly raising interest rates without taking away people's buying power.

Unemployment is going to continue to rise unless some relief is given to businesses, especially small businesses instead of to a population that's getting used to hand outs.  People on the government dole don't contribute to our society, they take away from it.  Not only by not producing out put but by having lowered self esteem.  Mankind is a creative, active, production oriented animal.  When government steps in and takes away the need for any one of those traits, we suffer.  People get their feelings of self worth by doing constructive, productive work, by creating things that are appreciated by other people.

Obama is making the same mistake every other liberal politician has made over the years and that is believing that you can give people things and have them become productive members of society.  After nearly 50 years of food stamps, welfare, payments to unwed mothers that keeps them unwed and all the other programs we have for the poor and needy they still want more.  Our welfare rolls haven't decreased over the years, they have increased.

The money needs to go to business in the form of tax breaks not freshly printed twenty dollar bills.  Businesses need to be rewarded for creating jobs.  When people go to work and are secure in their jobs they begin to spend money.  All of a sudden the economy starts to move not because there was a temporary injection of fake money but because people are going back to work.  We can not increase the Gross National Product by printing money, only by increasing production and that means people need to go back to work.

Let the failing companies fail.  Both nature and entreprenuers abhor vacuums.  When one company fails, two or three new ones will take their place.  As time goes by, one or two may fail but the surviving one is creating a better product or service and is hiring and paying emlpoyees.  It's how this country got to be the best in the world and the only way we can do it again. 

Write to your representatives and tell them to read Ayn Rand's "Atlas Shrugged" and Edward Gibbon's "The History of the Decline and Fall of the Roman Empire".  Those two books alone will change their thinking and maybe, just maybe get things headed the right way here.  Now, go back to work.  aloha