While purchases showed a spike, median prices fell on both islands

By Allison Schaefers

POSTED: 01:30 a.m. HST, Jun 08, 2010

Big Island and Kauai home sales posted double-digit increases in May. However, median prices fell on both islands, leading real estate watchers to conclude that these markets are still short of recovery.

Single-family home sales on the Big Island increased 25.5 percent to 128 houses last month, and condominium sales rose 71 percent to 53 units, according to data released yesterday by the Hawaii Information Service. Still, more than half of Big Island single-family home buyers in May paid at least $279,500, which represented a 7 percent decrease from the year-ago $300,500. The median price paid for a condominium also dropped about 7.8 percent to $285,000 from the year-ago $309,000.

May single-family home sales on Kauai rose 80 percent to 27 houses from the year-ago 15. Condominium sales climbed last month by 38.5 percent to 18 units from the 13 recorded in May of 2009. The median price paid for a single-family home on Kauai in May dropped 30 percent to $420,000 from the year-prior $600,000. The median price of a Kauai condominium dropped by 50.3 percent to $164,000 from $330,000 in May 2009.

Compared with a dismal last year, the statistics tell an overly optimistic tale, said Phil Fudge, the principal broker at Kapaa-based Kauai Landmark Realty.

"Last year was really terrible, so a little increase makes it look really big," Fudge said.

That said, buyers continued to benefit from low prices and interest rates on the Big Island and Kauai in May. Sellers made faster sales than they had previously. However, many still had to make price or other concessions, said Val Pilaria, principal broker at Aloha Kauai Properties.

"They have to compete with distressed sales," Pilaria said.

The volume of distressed properties also brought out the bargain hunters, said Howard Dinits, a Realtor with Kihei-based RE/MAX Resort Realty who specializes in Big Island and Maui residential real estate.

"Deals have kept the sales momentum high even after the expiration of the federal tax credits," Dinits said.

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Big Island and Kauai home sales posted double-digit increases in May. However, median prices fell on both islands, leading real estate watchers to conclude that these markets are still short of recovery.

Single-family home sales on the Big Island increased 25.5 percent to 128 houses last month, and condominium sales rose 71 percent to 53 units, according to data released yesterday by the Hawaii Information Service. Still, more than half of Big Island single-family home buyers in May paid at least $279,500, which represented a 7 percent decrease from the year-ago $300,500. The median price paid for a condominium also dropped about 7.8 percent to $285,000 from the year-ago $309,000.

May single-family home sales on Kauai rose 80 percent to 27 houses from the year-ago 15. Condominium sales climbed last month by 38.5 percent to 18 units from the 13 recorded in May of 2009. The median price paid for a single-family home on Kauai in May dropped 30 percent to $420,000 from the year-prior $600,000. The median price of a Kauai condominium dropped by 50.3 percent to $164,000 from $330,000 in May 2009.

Compared with a dismal last year, the statistics tell an overly optimistic tale, said Phil Fudge, the principal broker at Kapaa-based Kauai Landmark Realty.

"Last year was really terrible, so a little increase makes it look really big," Fudge said.

That said, buyers continued to benefit from low prices and interest rates on the Big Island and Kauai in May. Sellers made faster sales than they had previously. However, many still had to make price or other concessions, said Val Pilaria, principal broker at Aloha Kauai Properties.

"They have to compete with distressed sales," Pilaria said.

The volume of distressed properties also brought out the bargain hunters, said Howard Dinits, a Realtor with Kihei-based RE/MAX Resort Realty who specializes in Big Island and Maui residential real estate.

"Deals have kept the sales momentum high even after the expiration of the federal tax credits," Dinits said. http://www.BigIslandRealEstate.com and http://www.EasyMauiRealEstate.com

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Direct Phone 808-874-0600  e-mail Howard@HowardDinits.com

http://www.BigIslandRealEstate.com

The rate surges 115 percent, with Maui and the Big Island seeing huge increases and Oahu faring much better

By Gene Park

POSTED: 01:30 a.m. HST, May 13, 2010

Oahu remained well below the national rate of foreclosures in April, but the Big Island and Maui markets took large hits.

There were 1,474 Hawaii properties that received foreclosure notices last month, according to RealtyTrac, an online foreclosure marketplace.

That was a 115.5 percent increase over April 2009 foreclosure numbers.

Hawaii's April foreclosures, which equated to one in every 348 households, added up to a higher rate than the national rate of foreclosures, which was one in every 387.

Oahu fared the best, with one in every 580 homes. But Maui and the Big Island saw a high rate, with one in every 187 and one in every 179 homes, respectively. There was one foreclosure in every 313 homes on Kauai.

"I think we're just gonna see more inventory hitting every day," said Big Island and Maui Realtor Howard Dinits. "The foreclosure process takes a long time in Hawaii."

Nationwide the number of homes facing foreclosure fell 2.4 percent from a year ago in April. James Saccacio, chief executive officer of RealtyTrac, said the April national numbers indicate a plateau in foreclosures, but "at a very high level that will not drop off in the near future."

The number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month.

And there are millions more potential foreclosures ahead. Nearly 7.4 million borrowers, or 12 percent of all households with a mortgage, had missed at least one month of payments or were in foreclosure as of March, according to Lender Processing Services Inc., a mortgage data research firm.

As the economy turns around, "you will see an improvement in housing markets and in foreclosure activity," said Rick Sharga, a RealtyTrac senior vice president. "The problem is that there's such a backlog right now."

Among states, Nevada posted the highest foreclosure rate in April, with one in every 69 households receiving a foreclosure notice.

Foreclosures there were up 10 percent from March, but virtually unchanged from a year earlier. Next on the list were Arizona, Florida, California and Michigan.

Hawaii landed in 11th place. The top five neighborhoods in the state with the most foreclosures were Kailua-Kona, Kihei, Ewa Beach, Lahaina and Waikoloa.

Dinits said Waikoloa and Kihei foreclosures are due to a large number of owners who own second homes.

"It's an investment for them," Dinits said. "That's the real reason for the high numbers in those areas.

"If you gotta make a choice between your house or your vacation house, you're gonna keep your house."

Dinits said he is currently working on a foreclosure at an Ewa Beach home. He said the military community there might be experiencing transfers, routine changes in duty stations.

But David Kucic, a Realtor who specializes in Ewa Beach sales, said many of the Ewa Beach homes might be short sales, where sale prices are lower than the balance owed on the property's loan, being counted as foreclosures.

"It's not like you have 89 foreclosures," Kucic said, referring to RealtyTrac's statistics on Ewa Beach. "A property would actively be trying to sell as a short sale, but it will get reported as a foreclosure."

Kucic said he is seeing a lot of activity in Ewa Beach, a sharp contrast to last year's slow market.

"Last year, you could find a property no problem," Kucic said. "But the competition is stiff right now.

"Even though the first-time homebuyer's tax credit is gone, there are still a lot of buyers looking for properties."

OUT OF THE HOUSE

Kailua-Kona had the most foreclosures in April, according to RealtyTrac, an online foreclosure marketplace. Below are the state's foreclosure hot spots last month:

Source: RealtyTrac

NO PLACE TO CALL HOME

Hawaii's monthly foreclosures over the past year, including the year-over-year percentage gain:

Source: RealtyTrac

See Howard Dinits and his new listing in Keaau Hawaii 96749. Paradise Ala kai Hawaiian Paradise Park Howard Dinits Big Island Real Estate Agent

Top selling Big Island Realtor in Hawaii uses video and www.youtube.com to market Real Estate on the Big Island.

Island businesses say the online sensation is cost-effective and works

By Gene Park

POSTED: 01:30 a.m. HST, Feb 21, 2010

About two years ago a local woman did a YouTube search for "Hawaiian," as she was curious about what would pop up.

She ended up watching a video tour from Big Island Realtor Howard Dinits on a property he was selling at Hawaiian Shores in Pahoa. She grabbed her husband and went to see the house.

"Without ever calling me," Dinits said, recalling the sale. "It was the only house they looked at, and they eventually got it. That's what opened my eyes."

It's not like Dinits isn't Internet-savvy. Earlier in his life he sold glass art through his Web site. He was just surprised at how a random search for something unrelated led to business for him.

Local businesses large and small are betting on YouTube's purveyance, as well as the permanence of its presence, to strengthen their marketing arm.

It's a cheap bet, since the outlet is free. Its cost-effectiveness is one reason why the Hawaii Medical Service Association canceled its "HMSA Now" channel on digital cable last year.

"But not everybody has digital cable; it's not available in all areas," said HMSA spokeswoman Laura Lott. "Then we thought, Where do we go? When we want to look something up or have a health question, we go to the Web."

The channel offers health advice and information on insurance policies, as well as archived commercial spots. Lott said turnaround for producing videos has become easier since the company is able to upload on its own time.

"It's a simpler, shorter work flow and more cost-effective," she said.

For Dinits it was a small investment that has gone a long way. He's bought a camera that can shoot in high definition, with solar-charged batteries. "What's that investment there? Like $200?"

Dinits' video channel features footage of him giving virtual tours of properties he sells. Sometimes the channel more closely resembles a vlog, or video blog, with many personal asides, or footage of musicians he enjoys. Most times he visits the neighborhood of the property he is selling, visiting nearby shopping centers and attractions.

"They get to know me, they get to know the real estate, they get to know the area," Dinits said. "It's a way of people to get to know who they're doing business with."

Dinits said he no longer advertises in traditional media, outside of one local real estate guide.

"With the old way of giving information, you made the consumer call you, and that's how you got your lead," Dinits said. "I say give them everything. Give them all the information, show them the map, show them the Google locations. They'll call you because you're the one who gave them all that information."

Luxury real estate company Kahala Associates launched its YouTube channel earlier this month. The channel is regularly updated within a day or two of a new listing. The videos are also tagged with keywords so they would show up on search engines.

"It's pushed distribution of our listings in a huge, powerful way," said Chuck Garrett, Kahala Associates' business development director.

The firm hired a video vendor in Wisconsin to put together presentations for online. That way Kahala's 25 associates didn't need to waste time training to develop voice acting or film skills.

"We haven't had to become experts in how to make YouTube videos, because we're busy selling houses," he said. "We don't have to write the script, we don't have to buy a video camera."

The only initial hiccup of the outsourcing was mispronunciations of certain properties. But that problem was solved by using Forvo.com, an audio pronunciation guide to which people can contribute clips.

"'Kaaawa' was a tough one for them," Garrett said.

The firm still does print ads, trying to be "much leaner and smarter" in its advertising costs.

Farmers Insurance Hawaii, formerly AIG, still saturates traditional media with advertising with its popular commercials. The ads' popularity was part of the reason why the insurer started its own YouTube channel in 2007.

"Especially the one with the mailbox, and the argument, and the grandparents, some of the older ones," said Farmers e-marketing manager John Tapper. "People still talk about them, and asked to be able to see them."

Although the insurer started a new channel under its changed name, it decided to keep its AIG YouTube account active as an archive for its older commercial spots. Both channels have grown to highlight its community service work, including food drives, and the firm's TV spots for traffic safety.

"We're able to improve engagement and build trust," Tapper said. "It's an easy medium for people to look at that's nonthreatening, and be able to say we're part of the community."

Farmers spokeswoman Wenli Lin said the channel only informs the company's larger social media platform, being able to refer to videos on its Twitter and Facebook accounts.

"And it's the way things are going to be," she said.

http://www.BigIslandRealEstate.com

http://www.EasyMauiRealEstate.com

Home, condo sales up on Kauai and Big Island

By Allison Schaefers

POSTED: 01:30 a.m. HST, Feb 06, 2010

Sales of single-family homes and condominiums on Kauai and the Big Island posted triple and double-digit increases last month as buyers pursued bargains.

Prices were mostly lower.

While Oahu's housing market experienced a double-digit rise in single-family home sales and the median price last month, the neighbor islands still have farther to go, said Howard Dinits, a Realtor with RE/MAX Resort Realty in Waimea whose specialty is Maui and the Big Island.

"Oahu has already stabilized, but the outer islands still have no jobs and that hurts," he said. "Furlough Fridays have hurt, too."

In January, 31 single-family homes changed hands on Kauai, which represented a 210 percent increase from the prior year's sales. Likewise, condominium sales doubled to 14, a 100 percent rise last month.

Despite the run-up in Kauai sales, home prices continued to drop last month. More than half of the Kauai buyers in January paid at least $375,000 for a house, which represented a nearly 20 percent decline. Likewise, the median price paid for a Kauai condominium fell 19.5 percent to $204,500.

More Canadians than ever are looking for Kauai properties, said Phil Fudge, principal broker at Kapaa-based Kauai Landmark Realty.

"We had about five Canadian buyers come through in the last month," Fudge said. "Their economy isn't as sluggish as ours, and their dollar is in a good position."

It was a similar story on the Big Island, which saw single-family home sales increase nearly 69 percent to 86 and condominium sales rise nearly 63 percent to 26.

The median price paid for a single-family home on the Big Island fell about 9 percent to $239,250; however, the median condominium price increased about 21 percent to $245,000.

Bargain hunters from Oahu, Alaska, the U.S. West Coast and Canada are eyeing the neighbor islands, Dinits said.

"They like the low prices and the chance to get away from the cold," he said.

Local buyers also are capitalizing on low prices, favorable interest rates and the tax credits that are available to qualifying first-time buyers and owner-occupants, he said.

"Our volume is up. I've closed nine sales on the Big Island and Maui this year," Dinits said. "But I wouldn't say that prices are appreciating yet."

Big Island buyers are getting more serious, said Paula Beamer, a Realtor with Clark Realty's Waimea office.

"Some of them feel we are at the bottom," she said. "Getting a loan is a little tricky, but if you can get one, some of the prices are back to 2004 levels."

There are plenty of lookers in Kauai's market but fewer investor-buyers, Fudge said. "Our tourism has been down, and they want to see potential renters," he said.

http://www.BigIslandRealEstate.com

Rainfall and temperature at specified locations

Annually, Hawaii County: 2001-2005

Falling prices and homebuyer credits draw bargain hunters locally and abroad

By Allison Schaefers

POSTED: 01:30 a.m. HST, Nov 06, 2009

Home sales picked up on the Big Island and Kauai in October, according to a recent report from Hawaii Information Service.

Single-family home sales rose 48 percent on the Big Island and 39 percent on Kauai, said the report, which was released yesterday. Likewise, condominium sales rose about 21 percent on the Big Island and nearly 78 percent on Kauai; however, the percentages are somewhat skewed by the small size of these markets.

"I had three closings in one day in October," said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, who specializes in Big Island and Maui sales. "I haven't seen activity like that for three years."

Dinits said sales are up because prices have fallen.

"I recently sold a 1,270-square-foot home for $130,000 in Hawaiian Shores Recreation Estates on the Big Island," he said. "The same house would have sold for $265,000 in 2005."

Dinits said bargain hunters are coming from Oahu and Maui, California, Oregon, Alaska and Canada.

The $8,000 first-time homebuyer credit, combined with the price drop, also has lured buyers who could not afford to participate during the last cycle, he said.

"There are houses selling for $70,000," Dinits said.

The median price paid for a single-family home fell 13 percent on Kauai to $446,500 and nearly 6 percent to $282,500 on the Big Island. But while the median condominium price rose 26 percent to $357,000 on the Big Island, Kauai's median condominium price fell 24 percent to $395,000.

Home sales picked up on the Big Island and Kauai in October, according to a recent report from Hawaii Information Service.

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Single-family home sales rose 48 percent on the Big Island and 39 percent on Kauai, said the report, which was released yesterday. Likewise, condominium sales rose about 21 percent on the Big Island and nearly 78 percent on Kauai; however, the percentages are somewhat skewed by the small size of these markets.

"I had three closings in one day in October," said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, who specializes in Big Island and Maui sales. "I haven't seen activity like that for three years."

Dinits said sales are up because prices have fallen.

"I recently sold a 1,270-square-foot home for $130,000 in Hawaiian Shores Recreation Estates on the Big Island," he said. "The same house would have sold for $265,000 in 2005."

Dinits said bargain hunters are coming from Oahu and Maui, California, Oregon, Alaska and Canada.

The $8,000 first-time homebuyer credit, combined with the price drop, also has lured buyers who could not afford to participate during the last cycle, he said.

"There are houses selling for $70,000," Dinits said.

The median price paid for a single-family home fell 13 percent on Kauai to $446,500 and nearly 6 percent to $282,500 on the Big Island. But while the median condominium price rose 26 percent to $357,000 on the Big Island, Kauai's median condominium price fell 24 percent to $395,000.

Home sales on Big Island and Kauai rose in October

http://www.bigislandrealestate.com

"Should I sell my home on the Big Island myself? It's a question thousands of homeowners ponder each year, and the majority is motivated by a perception that the For Sale By Owner (FSBO) process saves sellers time and money.

"FSBOs often make the decision to sell their houses on the Big Island themselves because they think it is easy, and the home will sell quickly," says Howard Dinits, CRS, of RE/MAX Resort Realty in Wailea Maui Hawaii 96753 "Certainly, they want to save the commission and quite honestly feel the soft market makes it hard to break even."

Unfortunately, the do-it-yourself approach doesn't always end successfully. Before making a decision, here are a few things to consider.

1. Howard Dinits RS CRS sells homes for more money.
Some 61 percent of FSBOs sell their homes themselves to avoid paying the commission fee. However, the typical FSBO home sold for $25,200 less than an agent-assisted home. That's $163,800 for FSBOs, compared to $189,000 for agent-assisted homes.

2. Howard Dinits understands the ins and outs of the complicated Hawaii Real Estate transaction process.
It is a Realtor's job to guide and support clients during the sale of a home. They also help mitigate the overwhelming and time-consuming contracts, forms and disclosure statements required throughout the process. The most challenging tasks for FSBOs include: preparing/fixing up the home for sale; getting the price right; understanding and completing paperwork; selling within the time planned; and attracting potential buyers.

In addition to their deep knowledge of the real estate process, Dinits reminds FSBO sellers that CRS-designated REALTOR's care about where and when they want to move, as well as how much money is needed from the transaction. "CRSs demonstrate client service by involving sellers as much as they'd like. On the front end, agents know that marketing the home effectively leads to broader exposure. They appropriately follow-up with each prospect and alleviate a common FSBO fear of missing out on reaching the right people."

3. Howard Dinits CRS knows how to market your Big Island home effectively.
Getting the word out is essential for a successful and timely sale, so agent-assisted sellers benefit from frequent use of a wide array of marketing tactics. FSBOs rely mostly on yard signs, newspaper advertisements and open houses to incite buyer interest. Only 24 percent use the Internet to market their homes, while 72 percent of agents do.

"The biggest challenge for FSBOs is getting enough exposure for their home," Howard continues. "The Big Island newspaper captures only 1 percent of potential buyers, the Internet captures 32 percent, and the Multiple Listing Service (MLS) captures 51 percent.

"When FSBOs convert to listing with a REALTOR?, they find the tools Howard uses to reach potential buyers very valuable. We go beyond the MLS by reaching buyers who visit www.REALTOR.com, AOL, Yahoo! and MSN. CRS-designated REALTORs? in particular enjoy extensive relocation networks that bring in buyers from all over the country."

4. Howard Dinits is trained to overcome objections, negotiate and remain impartial.
Selling and buying real estate is an emotional process for homeowners. When its time to negotiate price, Howard Dinits is his clients' advocates and can compile statistics and research, balance offers and counteroffers, and handle many of the contingencies that can be frightening and frustrating for buyers and sellers working alone.

"FSBOs in Hawaii underestimate the amount of follow-up required," Howard says. "Potential buyers tour their homes, but the owners typically are not sales people and end up telling more than selling. The pride of ownership doesn't translate into a sale follow-up does. When Howard Dinits, instead of owners, works with buyers, it helps shield the emotion of buying and selling away from the negotiation."

5. Howard Dinits' clients are satisfied.
  Since 2005, 83 percent of sellers worked with a real estate agent. The majority of sellers who work with Howard Dinits believe they benefited from his experience and knowledge of the real estate market, and 95 percent report they would use Howard again or recommend him/her to others.

Not convinced and you still want to sell your house on your own?
There's a FREE service http://fsbohawaii.info/

provided by Howard Dinits RS CRS
RE/MAX Resort Realty
http://www.BigIslandRealEstate.com
877-434-6487

In the near future http://www.BigIslandRealEstate.com will have aps for the new Droid and Blackberry mobile phones

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For the week of Sept. 28-Oct. 2

The best available tool for sustaining the still-fragile housing market is the $8,000 homebuyer tax credit, and it is essential that Congress extend the credit into 2010, the National Association of Realtors (NAR) testified at a hearing of the U.S. House Small Business Committee in October. Keywords, extending, homebuyer, tax, credit, housing, recovery, big, island, real, eastate

It’s increasingly likely that Congress will extend and expand the popular home buyer tax credit, which will expire at the end of this month.

NAR Regional Vice President Joseph L. Canfora, also told the panel that a major stumbling block for consumers has been the implementation of appraisal processes spurred by the Home Valuation Code of Conduct (HVCC), which is causing delays in closings, as well as cancelled sales that led to artificially low existing-home sales numbers for August, reported last month.

"The credit is working," Canfora said, pointing out that the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices. Further, the credit has provided a huge indirect benefit to local governments, shoring up property tax bases in particularly hard-hit areas.

Further, NAR data has estimated that every home purchase pumps into the recovering economy about $63,000 – the equivalent of one new job added to the employment figures.

But, Canfora said, the threat of more foreclosures coming to the market caused by mortgage rate resets, job losses, and by lender’s unburdening themselves of additional properties to take advantage of today’s more stabilized prices could disrupt the fragile recovery.

In a "normal" market, optimal housing inventory is about six to seven months, he said. When the tax credit was enacted in February, inventory was 9.1 months. Because of the spurt in homes sales since then due to the tax credit, inventory declined to 8.2 months in August, closer to "normal" than at any time since 2007.

In urging Congress to extend the credit, Canfora said, "The more robust the credit and the greater its duration, the greater the chance that the housing market can perform its traditional role of helping the economy move out of a recession."

"But problems arising from the implementation of the HVCC may reverse the market’s positive momentum at a time when the real estate industry is just starting to show signs of a rebound in many markets," Canfora said. According to an NAR survey of its members, approximately 40 percent of Realtors report having lost at least one sale since May 1 because of appraisal problems due to the HVCC rules. Twenty percent say they have lost more than one sale.

The culprit, he said, was that appraisal management companies, which have gained prominence because of the HVCC, have assigned appraisers to areas where they lack geographic competence. That has resulted in unreliable appraisals. It is not uncommon that second and third appraisals have to be done to ascertain fair market value. Appraisal fees have also risen and are being passed on to consumers.

Both Fannie Mae and Freddie Mac have issued guidance on appraisals, but NAR is calling upon the mortgage giants and the Federal Housing Administration to issue a consolidated guidance that should be codified and incorporated into the existing policy to ensure proper information on appraisals is available to the real estate industry.

FHA Commissioner David H. Stevens has asked FHA staff to explore that recommendation with Fannie and Freddie. Last month, Stevens reaffirmed FHA appraisal policy, taking into consideration the unintended consequences that have burdened Fannie and Freddie, and issued two Mortgagee Letters focusing on appraisal changes. The policy reaffirms appraiser independence and geographic competence.

The FHA announcement also included timely steps to protect taxpayers: implementing credit policy changes to enhance risk management; hiring a chief risk officer for the first time in the agency’s history; and shifting responsibility for mortgage brokers away from taxpayers to the lenders who use mortgage brokers.

Canfora told the committee that FHA has performed remarkably well through the housing crises, compared to Fannie and Freddie. "That’s because FHA has never strayed from the sound underwriting and appropriate appraisals that have traditionally backed up their loans."

"The reason the FHA capital reserve ratio fell below 2 percent had nothing to do with FHA’s current business activities. It is simply a reflection of falling housing values in their portfolio." He cited an FHA announcement that a 2009 audit will show that even if FHA does nothing, the cap reserves are expected to rise back to that required level within a few years. He also pointed out that FHA total reserves are not in as dire straits as some have reported since the cap reserve fund is not the only FHA reserve fund – FHA also has a separate cash reserve that is higher that it has even been – and the combined assets total $30.4 billion.

extending, homebuyer, tax, credit, housing, recovery, big, island, real, eastate

by Howard Dinits

Whether you are buying your first home, or your fifth, the process of buying a home is a detailed, time-consuming venture. At the same time, it’s an emotional period laden with difficult choices. You want to ensure that the home you purchase in Pahoa, Kaliua-Kona, Waikaloa, Keaau or Hilo Areas meet your family’s needs now, and in the future.

Each of these decisions often involves money. When you consider all that money represents, you’ll want to ensure that you don’t pay too much. This article helps you become a savvy buyer, by pointing out some of the pitfalls inherent in the home-buying process. These include such things as knowing what you want before you begin shopping, taking your time to shop, choosing the right realtor, and remaining objective while viewing potential homes. With this information, you’ll be closer to finding your ideal home and purchasing Big Island Real Estate.

#1 Before you shop, develop a needs vs. wants list
Everyone has a picture of an ideal home in Hawaii. This would include all the features you not only need, but have long desired. However, when it comes time to buying a home, the desires cost more. While it’s nice to think about having a beautifully landscaped backyard, or a solarium, perhaps even some built-in appliances, these are usually considered luxury items, which can add considerably to the price of your home.

That’s why it’s a good idea to develop a needs and wants lists. With this list, begin with items you really need like adequate space, garage and number of bedrooms. For most people, basic needs should be considered first. After that, you could consider additional desires, if you can manage these benefits financially.

With such a list in your hands, you’re less likely to be caught up in the excitement of the pursuit. You’ll have a good idea of what you want, within you price range, and if you can afford those additional items.

#2 Get pre-approved prior to shopping
Visit your financial or lending institution prior to home buying. Quickly, you’ll know the amount of mortgage you’ll receive. Be sure to get a mortgage commitment in writing. Most importantly, you’ll tell sellers that you are a serious prospect. Depending upon market conditions, a seller may lean towards an unconditional offer. You’ll have less negotiating power if you have to wait for mortgage approval.

Banks and financial institutions have developed many programs especially for home buyers, be that first-time buyers or those with equity in their homes. When you review your needs and objectives with a lending officer, you’ll be one step closer to purchasing your home.

#3 Choose your winning team
Buying a home on the Big Island is a complicated process, with many people involved. From choosing the right mortgage, to finding a home inspector, to viewing available properties, there are many steps involved for even the hardiest person. With a professional realtor on your side, you’ll have access to these services, already in place, and highly recommended. A good agent has the knowledge and experience developed from many years of helping both buyers and sellers. During this time they have developed a network of people, from lenders, lawyers, home inspectors and movers, to assist both home buyers and sellers.

#4 Communicate clearly with your Realtor
Spending time with your Big Island Realtor will reap huge dividends. When you have a clear picture of the type of home you’re looking for, your Realtor can come closer to finding the home you want. You won’t waste time looking at homes that don’t match your needs.

#5 It’s still true – location, location, location
You’ve heard it so many times, that it’s probably starting to sound like a broken record. That’s because it’s true! A home is not a stand alone item. Rather the value of a home is greatly affected by the surrounding homes. Don’t let your emotions determine your purchase. Think resale. The desirability and resale value of your home depends largely on location more than any other factor. People want a desirable community that includes character, quality of schools, access to work, major transportation arteries, recreational facilities, etc.

On your viewing trips, take a careful look and ask the following questions: How does this home compare to others in the neighborhood? Are yards fenced? Are there many children playing in the streets? Are front and backyards and the exterior of the homes properly maintained?

Walk around the neighborhood and get a feel for the people living in the area. You may want to speak with a few neighbors to get their comments. If you like the community, carefully examine the home you like. Generally speaking, extremely large homes surrounded by smaller homes tend to appreciate less than a large home among other large homes. Alternatively, the smallest home in the neighborhood tends to stand out by the other homes on the block. Sometimes, it could take a bit longer to sell a smaller home, as some people are reluctant to pay extra for the neighborhood.

Additional factors that affect the property value of a home include traffic, sounds, smells, zoning bylaws. Be objective. Don’t rely too heavily on your emotions. Be sure you are completely satisfied with the neighborhood. If you choose a neighborhood with problems, you likely won’t get as much as you hoped with it comes time to sell.

#6 Use your Realtors’ knowledge of the community
Your Realtor is trained in all aspects of Real Estate, including understanding supply and demand, economics and the neighborhoods of the city in which they practice. As they regularly view homes as they are placed on the market, they are at the heartbeat of knowledge and information about housing trends and prices. They can save you time and money, by narrowing your prospects to only those that meet your requirements. It is a very time consuming process to view every home available that meets your needs. A professional Realtor can do much of the work for you, by reviewing your needs, reviewing the properties and then hopefully, advising you of a potential match. A comprehensive knowledge of the available homes in your neighborhood is one of your Realtor’s strongest assets. With the aid of computerized systems, a Realtor is notified within hours when a home becomes available.

#7 Check your emotions, and shop with your head
When people purchase a home on emotion, without an objective view of the property, problems may develop later. Shopping for a home is an emotional process. It could be costly. Using your head, along with asking for an objective opinion (from your Realtor) could help you avoid costly errors.

#8 Pay attention to “red flags”
When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting, unattractive wallpaper can be easily remedied. You could use these as negotiating items, as there will be costs involved in updating the home.

Major problems, however, are clearly “red flags.” Look for items such as major foundation cracks, water damage, outdated electrical systems, and inadequate plumbing. These items could cost you dearly in the future.

#9 Hiring a home inspector is a wise investment
A home inspection is an inexpensive way to gain peace of mind, and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and trim, porches, patios, decks, garage and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.

#10 Be cautious with fixer uppers
Some people may be inclined towards purchasing a home that needs some work. This could be a challenge and an opportunity to make money. Sometimes, a fixer-upper can be purchased below market value, and sufficient repairs made to bring it to a good sale condition with a profit realized. However not all fixer uppers will bring in the profits you might expect. It depends upon the price of the home, the amount of repairs needed and the market conditions at the time of sale. If the home is not priced low enough, you may not recover your investment of time, trouble and money. Before you purchase what looks like a quick way to profit, carefully consider the condition of the home and ALL the repairs that need to be made. Get several estimates. Complete a comprehensive budget. Also consult with your Realtor. He or she can give you an idea of what you can reasonably, expect to recover when the home is put back on the market.

#11 Consider your future needs
Take a look at your lifestyle now and in the future. Will you need extra space for a home office, a child, or perhaps a child moving back home? Perhaps it may be easier and less expensive if you purchase a home that can meet these needs now, rather than moving up to a larger home a few years later.

#12 Proceed quickly
When you’re ready to buy, move fairly quickly. That’s because good properties usually sell fast. This is especially true when there is a shortage of homes available. However, when you work with a Realtor, you have access to the most current technology. As part of the MLS network, a Realtor has access to properties within hours of when they are listed. Technology works to your advantage. When a Realtor knows your needs, they will notify you when properties that meet your criteria become available. Many Realtors now have personalized web sites which allow you to sign on a client, and receive notification of these listings via email. You save time and effort, and you can view only those homes that come closest to your needs.

#13 Clarify relationships
In any real estate transaction, be very clear about who is working for whom, and what the relationship represents. Many people believe that the agent they are working with automatically represents them and their interests. Yet, without specific disclosures this is not true. Unless otherwise stated, the agent represents the seller in transactions for the sale of a home. This agent, as part of his or her fiduciary duty, must ensure his loyalty protects the seller’s position throughout the entire process.

#14 Ask for a written CMA
A Comparative Market Analysis (CMA) is an analysis of comparable homes in the neighborhood. It shows you the sale prices of comparable homes in the neighborhood, along with asking prices of other homes in the area currently on the market. A Realtor can request this report for any home and neighborhood in Hawaii. Ask for this report in writing. With this valuable document, you’ll have the appropriate evidence for either a too-high asking price, or one that is a bargain.

#15 Investigate the seller’s situation
Knowing about the seller’s reasons for moving could work to your advantage during negotiations. For instance, a seller who has been transferred to another city, may be more motivated to sell rather than someone who is still shopping for a new home. A vacant house, a house that has been on the market for several months and reduced in price, could also be indications of a motivated seller.

#16 Keep personal information to yourself
Conversely, information could be used to your detriment. Information about your mortgage, size of down payment, move-in deadline, or circumstances for buying, could be negotiating factors. While you want your Realtor to know these details, don’t reveal any of this information to the seller.

#17 During negotiations, keep your emotions in tact
In certain situations, emotion could cost you money. If you let the seller know how interested you are in the property, this might be seen as a financial opportunity. Recognizing that you are highly motivated, you could an easier target for a higher price. If you absolutely love the home, keep it to yourself. This is a definite advantage of working with a professional Realtor. Trained to be non-emotional, he or she can ensure you get the best price.

#18 Ensure the deal is right before you sign
While you definitely want to move quickly, once you’ve made the decision to purchase, you don’t want to cave in to pressure for a quick close. Someone who is trying to pressure you into buying a home, is doing so for a reason. This could involve money, or a multitude of other reasons.

#19 Exercise your negotiating skills
Even if you prefer not to haggle, it’s worth it, especially when it’s your home and your future. Most people expect to haggle over the price. That’s often why the price is set a bit higher than the actual selling price. There is always room for negotiation. If you want to get the best home possible for the least amount of money, then negotiation is the only way to get a good deal.

#20 Avoid bidding wars
In some cases, the seller’s Realtor may use scare tactics to rush the sale or increase the price. Falling for this trap could cost you money. If there is another buyer, or some other reason this pressure is being applied, whoever wins also loses because they overpay. If there really isn’t another buyer, then it’s likely that the deal with fall through.

#21 Insist on a written disclosure of all known defects
Legally, sellers must disclose all known material defects of a property. Ask for this in writing. Also be sure to consider the ramifications of these defects. Will it be costly down the road? Are they “serious” defects?

#22 Be aware of your hidden costs
There is more to a home than simply the mortgage. You will be responsible for other items including mortgage insurance, appraisal fees, legal fees, inspection fees, transfer taxes, title insurance, inspections, etc. Your Realtor Howard Dinits can give you a good idea of the costs associated with buying a home that are beyond the final negotiated price of your home.

Now you know some of the secrets, but nothing will replace the expertise of Howard Dinits RS Certified Residential Specialist. Howard Dinits Specializes in the Big Island and Maui. Please call Howard at 808-874-0600 or 877-434-6487

or go to http://www.BigIslandRealEstate.com

HOW 2 BUY BANK OWNED PROPERTIES on the Big Island of Hawaii

There is a lot of people talking story about buying bank owned properties in Hawaii.  There’s lot of information being shared some good and some bad.  You’ll even find infomercials & seminars that will tell you how to get rich. (once you pay  for their “secret formula”).  The fact is, that there are no secrets, and to make money requires plenty of effort.

What’s an REO?

REO stands for “Real Estate Owned”.  These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. The REO property did not find a buyer during foreclosure auction and the bank now owns it.  The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.  Do be aware that REO’s may be exempt from normal disclosure requirements.  In Hawaii, for example, banks are exempt from giving a Seller’s Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.

Is it a Bargain?

It’s commonly assumed that any REO must be a bargain and an opportunity for easy money.  This simply isn’t true.  You have to be very careful about buying a REO if your intent is to make money off of it.  While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for the property.  When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the home for resale.  The bargains with money making potential exist, and many people do very well buying fixers.  You also need to remember there are also many REO’s that are not good buys and not likely to turn a profit.

Ready to Make an Offer?

Before making your offer, you’ll want to contact your Realtor to find out as much as you can about the property and what the banks process is for receiving offers.  Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it.  As with making any offer on real estate, you’ll make your offer more attractive if you can include a pre-approval letter from a local lender.  After you’ve made your offer, you can expect the bank to make a counter offer.  Then it will be up to you to accept their counter, or offer a counter to their counter offer.  Realize, you’ll be dealing with a process that probably involves multiple people at the bank on the mainland in different time zones and they don’t work evenings or weekends.  It’s not unusual for the process of offers and counter offers to take days or even weeks and sometimes these transactions can take several months to close.

Now you know the Secret to Buying REO’s. It is hard work and can take a lot of time.  If this type of challenge doesn’t scare you, then maybe investing in REO’s is for you.

For more information contact:

Howard DInits (R)S at RE/MAX Resort Realty

877-434-6487  or via e-mail Howard@HowardDinits.com

http://www.BigIslandRealEstate.com

The Hilo/Puna region had one filing per 88 households in the first half of 2009

By Allison Schaefers

POSTED: 01:30 a.m. HST, Jul 30, 2009

Maui's main metro area was worse than the national foreclosure rate average while Honolulu appeared in the bottom half of nationwide rankings released today by RealtyTrac.

In the midyear data, there was one foreclosure filing for every 81 households in Kahului/Wailuku, Maui, which would have ranked No. 63 if the region had been considered urban enough to be included in the city listing, said Daren Blomquist, RealtyTrac's marketing manager.

In Honolulu, one in every 207 Honolulu homeowners was in foreclosure, earning the city a rank of 143 out of 203 cities, according to Irvine, Calif.-based RealtyTrac, an online foreclosure marketplace.

By midyear, 1,616 Honolulu homeowners had received a foreclosure notice, a 276 percent increase from the same period a year ago and a 31 percent increase from the prior six months.

But while Honolulu foreclosures are growing, overall the city has a limited foreclosure footprint as compared to the nation. RealtyTrac reported 1.5 million foreclosures in the nation during the first six months of the year, an average of one in every 84 U.S. households.

"We are seeing huge increases in activity in Honolulu, but it's still at a point where there are a lot of other cities that are worse off, Blomquist said.

The same could not be said for the neighbor islands, which have been harder hit by economic recession and had experienced higher price swings during the last real estate boom, said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, who specializes in Big Island and Maui sales.

"It's hard to know exactly what is going on in the neighbor islands and why those areas have significantly higher foreclosure rates than Honolulu, but they have less economic diversity and are more susceptible to changes in the economic climate," Blomquist said.

Declining real estate values and increased joblessness, combined with a tighter lending market and a depressed economy, have created the perfect neighbor island storm, said Dinits, who has had to switch real estate firms twice this year due to office closures.

"Get ready, it's just going to get worse," Dinits said. "California was littered with foreclosures last year and we tend to lag that market by six to nine months or more."

Hilo, which had one filing for every 88 households during the same time period, would have ranked No. 65 if it had been considered urban enough, he said.

Kapaa, Kauai, where one in every 98 housing units received a foreclosure filing during the first six months, would have been ranked No. 72, Blomquist said.

Phil Fudge, principal broker of Kauai Landmark Realty, said that the distressed market is driving Kauai sales.

The continuing drop in tourism has deeply affected Kauai's entire economy, he said.

"With our hotels running slow, many people are getting laid off," Fudge said. "We don't have any other major employers."

Kauai real estate agents are feeling the pinch, too, he said. Out of 650 agents, only 200 have made a sale through July, Fudge said.

"And, only 33 agents have sold the $2 million in real estate that it takes to earn at least $60,000," he said.

While Maui and Big Island agent rosters have gotten shorter, Dinits has survived by focusing on distressed sales, he said.

"My list of cute little old ladies with equity that want to sell is very short," Dinits said.

Maui's main metro area was worse than the national foreclosure rate average while Honolulu appeared in the bottom half of nationwide rankings released today by RealtyTrac.

BLOOMBERG NEWS

The average foreclosure rate per household in the United States during the first half of this year was one out of 84. Above, a foreclosure sign stood outside a home in Winchester, Va. Honolulu ranked No. 143 during the period, with a 1/207 ratio.

View Large Version >>

In the midyear data, there was one foreclosure filing for every 81 households in Kahului/Wailuku, Maui, which would have ranked No. 63 if the region had been considered urban enough to be included in the city listing, said Daren Blomquist, RealtyTrac's marketing manager.

In Honolulu, one in every 207 Honolulu homeowners was in foreclosure, earning the city a rank of 143 out of 203 cities, according to Irvine, Calif.-based RealtyTrac, an online foreclosure marketplace.

By midyear, 1,616 Honolulu homeowners had received a foreclosure notice, a 276 percent increase from the same period a year ago and a 31 percent increase from the prior six months.

But while Honolulu foreclosures are growing, overall the city has a limited foreclosure footprint as compared to the nation. RealtyTrac reported 1.5 million foreclosures in the nation during the first six months of the year, an average of one in every 84 U.S. households.

"We are seeing huge increases in activity in Honolulu, but it's still at a point where there are a lot of other cities that are worse off, Blomquist said.

The same could not be said for the neighbor islands, which have been harder hit by economic recession and had experienced higher price swings during the last real estate boom, said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, who specializes in Big Island and Maui sales.

"It's hard to know exactly what is going on in the neighbor islands and why those areas have significantly higher foreclosure rates than Honolulu, but they have less economic diversity and are more susceptible to changes in the economic climate," Blomquist said.

Declining real estate values and increased joblessness, combined with a tighter lending market and a depressed economy, have created the perfect neighbor island storm, said Dinits, who has had to switch real estate firms twice this year due to office closures.

"Get ready, it's just going to get worse," Dinits said. "California was littered with foreclosures last year and we tend to lag that market by six to nine months or more."

Hilo, which had one filing for every 88 households during the same time period, would have ranked No. 65 if it had been considered urban enough, he said.

Kapaa, Kauai, where one in every 98 housing units received a foreclosure filing during the first six months, would have been ranked No. 72, Blomquist said.

Phil Fudge, principal broker of Kauai Landmark Realty, said that the distressed market is driving Kauai sales.

The continuing drop in tourism has deeply affected Kauai's entire economy, he said.

"With our hotels running slow, many people are getting laid off," Fudge said. "We don't have any other major employers."

Kauai real estate agents are feeling the pinch, too, he said. Out of 650 agents, only 200 have made a sale through July, Fudge said.

"And, only 33 agents have sold the $2 million in real estate that it takes to earn at least $60,000," he said.

While Maui and Big Island agent rosters have gotten shorter, Dinits has survived by focusing on distressed sales, he said.

"My list of cute little old ladies with equity that want to sell is very short," Dinits said.

FORECLOSURE RANKINGS

RealtyTrac's midyear foreclosure rankings of cities nationwide:

Source: RealtyTrac

http://www.BigIslandRealEstate.com

Mainland investors are showing more interest in properties on Kauai and the Big Island

By Allison Schaefers

POSTED: 01:30 a.m. HST, Jul 07, 2009

The quest for short sales and foreclosure properties dominated real estate activity on the Big Island and Kauai last month and continued to drive property prices down in most categories.

Falling prices, which dropped 13.5 percent for single-family homes on the Big Island and 36 percent for single-family homes on Kauai, created more interest in the market.

"Somebody who didn't jump in the pool just because everyone else was jumping now has a golden opportunity," said Howard Dinits, a Realtor with RE/MAX Maui, who also sells property on the Big Island. "Never have we seen a market where you can buy a house so cheaply and get an interest rate for less than 6 percent."

The median price paid for a single-family home on the Big Island dropped $44,285 to $285,000, according to statistics released yesterday by Hawaii Information Service. However, the median price paid for a Big Island condominium rose 2.9 percent to $310,500.

In Puna, where Dinits sells the bulk of his properties, the median price paid for a single-family home had dropped to $163,000. While foreign activity has slowed with the Big Island's real estate market, Dinits said mainland investors from California, Alaska, the Pacific Northwest, New York and New Hampshire have re-entered the market.

"Consumers are looking for deals," Dinits said. "There is a lot of demand and a lot of competition in the $100,000 to $175,000 range. And, yes, these days, that will get you a house."

Dinits just sold a bank-owed property in Hawaiian Paradise Park, which has been plagued by distressed sales, for slightly more than $109,900, he said. That same property traded for $260,000 in 2006, Dinits said.

Prices also have dropped steeply on Kauai, said Phil Fudge, principal broker of Kauai Landmark Realtor.

The median price paid for a single-family home on Kauai dropped to $440,000, a $247,500 decline from the prior year, according to Hawaii Information Service. Similarly, the median price paid for a condominium on Kauai fell 46 percent to $375,000 from the year-prior $695,000.

"We are seeing activity, and it seems like the short sales and the foreclosures are driving the market," Fudge said. "Prices for properties that are not in short sale or foreclosure are being driven by the distressed market."

Fudge said Kauai's market has dropped so much that sellers are sometimes considering offers that fall more than $100,000 below the list price.

The market has fallen so much it's not unusual to see properties that sold for $750,000 a few years ago now listed for $559,000, he said.

"Our market is down to 2004 levels for residential and 2003 levels for condos," Fudge said.

As a result, Fudge said the number of offshore investors coming to Kauai from the West Coast to view and purchase properties has begun to rise.

"They've been looking for a while, but prices have finally fallen to a point that many are just now thinking that it's the time to act."

But even with bargain-hunters out in full force, single-family home and condominium sales on the Big Island and Kauai continued falling last month.

Single-family home sales on the Big Island fell 8.3 percent and condominium sales fell 12.5 percent, according to data from Hawaii Information Service. Likewise, single-family home sales fell 25 percent on Kauai, and condominium sales fell 37.5 percent.

Home sales

The median price and percentage change from the same month last year for homes sold on the Big Island and Kauai:

Source: Hawaii Information Service

The quest for short sales and foreclosure properties dominated real estate activity on the Big Island and Kauai last month and continued to drive property prices down in most categories.

Falling prices, which dropped 13.5 percent for single-family homes on the Big Island and 36 percent for single-family homes on Kauai, created more interest in the market.

"Somebody who didn't jump in the pool just because everyone else was jumping now has a golden opportunity," said Howard Dinits, a Realtor with RE/MAX Maui, who also sells property on the Big Island. "Never have we seen a market where you can buy a house so cheaply and get an interest rate for less than 6 percent."

The median price paid for a single-family home on the Big Island dropped $44,285 to $285,000, according to statistics released yesterday by Hawaii Information Service. However, the median price paid for a Big Island condominium rose 2.9 percent to $310,500.

In Puna, where Dinits sells the bulk of his properties, the median price paid for a single-family home had dropped to $163,000. While foreign activity has slowed with the Big Island's real estate market, Dinits said mainland investors from California, Alaska, the Pacific Northwest, New York and New Hampshire have re-entered the market.

"Consumers are looking for deals," Dinits said. "There is a lot of demand and a lot of competition in the $100,000 to $175,000 range. And, yes, these days, that will get you a house."

Dinits just sold a bank-owed property in Hawaiian Paradise Park, which has been plagued by distressed sales, for slightly more than $109,900, he said. That same property traded for $260,000 in 2006, Dinits said.

Prices also have dropped steeply on Kauai, said Phil Fudge, principal broker of Kauai Landmark Realtor.

The median price paid for a single-family home on Kauai dropped to $440,000, a $247,500 decline from the prior year, according to Hawaii Information Service. Similarly, the median price paid for a condominium on Kauai fell 46 percent to $375,000 from the year-prior $695,000.

"We are seeing activity, and it seems like the short sales and the foreclosures are driving the market," Fudge said. "Prices for properties that are not in short sale or foreclosure are being driven by the distressed market."

Fudge said Kauai's market has dropped so much that sellers are sometimes considering offers that fall more than $100,000 below the list price.

The market has fallen so much it's not unusual to see properties that sold for $750,000 a few years ago now listed for $559,000, he said.

"Our market is down to 2004 levels for residential and 2003 levels for condos," Fudge said.

As a result, Fudge said the number of offshore investors coming to Kauai from the West Coast to view and purchase properties has begun to rise.

"They've been looking for a while, but prices have finally fallen to a point that many are just now thinking that it's the time to act."

But even with bargain-hunters out in full force, single-family home and condominium sales on the Big Island and Kauai continued falling last month.

Single-family home sales on the Big Island fell 8.3 percent and condominium sales fell 12.5 percent, according to data from Hawaii Information Service. Likewise, single-family home sales fell 25 percent on Kauai, and condominium sales fell 37.5 percent.

Home sales

The median price and percentage change from the same month last year for homes sold on the Big Island and Kauai:

Source: Hawaii Information Service

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.