Kona Kohala Blog

Already, after only a couple of semi-positive reports, the "experts" are saying the recession is over.  One of the reports they point to is the unemployment report; did anyone think about the fact that the number of people filing for unemployment may be down because we're running out of jobs to lay people off of?

On the mainland, this is translating into improved sales of homes in some of the hardest hit areas.  The second quarter has shown improvements in both the number of sales and the median price, just like our condo sector in West Hawaii.

There are some very good deals in condos right now but you do have to be cautious.  There are some complexes in both Kailua Kona and the Waikoloa Beach Resort where lenders will not lend due to high numbers of delinquent owners not paying their maintenance fees.

Other complexes have over 50% of the residents being renters rather than owners which makes the complex an investment property for a buyer.  So even if the person is buying to use the property as their primary residence, the lender is charging much higher interest rates and more junk fees because they consider it an investment.  Not fair but a reality.

Until people go back to work, look for the Hawaii market to remain behind the mainland recovery except for the smart few who protected their investments during the down turn.  Those people are in good position to buy long term investments that can be used as rentals for all the people who need a place to live but can't afford to buy.  There's opportunity in every crisis.  aloha