Kona Kohala Blog

Adding to the choices of condos in North Kona is Casa de Emdeko B-231.  A 2 bedroom, 2 bath remodeled unit listed at $465K.  You can go to Search MLS on our website and type in MLS #224500 and I'll have video coverage on this site in the next 24 hours.  This was remodeled as the owner's retirement home but the economy got them like so many others.  Instead of retiring, they'll be at work for a little longer so their home in Hawaii is on the market.

Interest rates inched up this last week which may or may not be a precursor of things to come.  At some point, all this funny money being printed is going to kick off inflation and when it does, it will be a good time to own real estate.  Right now there are lots of choices and prices are at or near bottom so if you can afford it, now's a good time to jump in.

Most of what is selling remains those properties under $400K.  We are now seeing the same prices we saw in 2003, before thing really took off here.  Prices are predicted to continue downward for a bit longer, maybe 4 to 6 months but then stop the drop.  It will be interesting to see if these crystal balls are any better than those of the past but who wants to appear like they don't know what's going on?

Meanwhile, President Obama, who is trying so hard to stay out of Washington D.C. was in Nevada.  He was talking about all the new jobs being added by alternative energy, wind and solar in particular.  It would be a great thing if these new industries could keep up with the layoffs in other sectors of the country.  Manufacturing has been dying for years so maybe, building components for alternative energy producers will add some of the lost jobs we've had over the years as the manufacturing sector went overseas.  Maybe the time is right for wind and solar.  I only hope these are not new government ventures, totally supported by our tax dollars like the auto industry.

And speaking of tax dollars, when are the banks that are holding so much tax payer money going to loan it out?  I can't imagine how much interest they have earned on the billions of dollars loaned to them since the days of "W".  My guess is they're waiting for interest rates to move up a bit, say to the 6% and 7% range.  At least then, they'll get a solid return on their money.

Is it true that many of the largest banks tried to give the money back due to the strings attached (none of which helped us taxpayers) but the feds wouldn't allow that?