Kona Kohala Blog

It looks like we might be down to the two contenders for the presidency; senators John McCain and Barak Obama will probably go head to head for the top position in the country and that's probably the way it should be.

The rest of the wanna' be's are falling by the wayside like so much road kill.  Having to choose between these two seems like the best choices we've had in a long long time.  Whomever gets the crown is getting more than their share of politicrap that comes with the territory meaning there's not much either one will be able to do except to keep the country afloat while the forces of nature and economics take their courses and put us back on track.  This could be the time for another Eisenhower, a man who helped us all keep our heads while those around us lost theirs.  We need a time of calm, of less name calling, of less partisanship and more of doing what's right for we the people.

Neither one is going to be able to straighten things out, that's going to require more of a miracle than any amount of political maneuvering.  While the stimulus package is equivalent to giving your kids a year's allowance all at once it may be the shot in the arm we need to avoid a total recession, at least for a week or two.  Making home ownership more attractive will go a step further since it's the slow down in the housing market that's causing most of the problems.  Letting the economy correct naturally i.e., having a recession, may be the best way to secure a long term cure.

Ask yourself, if we have a recession, what does it mean to me?  Most of us know it will be bad because that's what the media has told us but how bad and just how personal will it be?

Will a sizable correction in housing costs affect you in a negative way?  Will it slap down some of the people who got a little carried away with the chance to make a quick buck, probably.  Is that bad?  Probably not, unless you're one of them that got caught with your hand in the cookie jar.

As far as the price of a home in Kona or Holualoa or Waikoloa is concerned it will be a good thing for those looking for a new home.  For those trying to sell, it's not a good thing but still, if they've owned the property for a few years there's a bunch of equity available to them. 

Some people have already taken out their equity but fail to acknowledge that.  Still, they refinanced and put money in their pocket so they're ahead of the game.  If you want to sell and you're one of those who refinanced then count the money you already got, cut your asking price and get on with your life.  This remains a good time to sell unless you're one of those people who maxed out their real property ATM.  There's still money to be made by sellers, just not as much as there was in 2005.

While this may be an ugly market when viewing the wreckage of foreclosures, it's a beautiful market for those who were wise with their investment and didn't suck it dry every time interest rates dropped a half point or their value went up $10,000.  This is a great time to buy and Hawaii get more valuable every day.