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Will Hawaii's real estate market be affected by future higher fuel prices?

By
Real Estate Broker/Owner with Best Homes Hawaii RB-13537

Will Hawaii's real estate market be affected by future higher fuel prices?

Do you think you will see a near future change in your neighborhood?  Near future meaning in the next 2-3 years.  According to various and current news sources, our electric bills have seen a 50% increase over the past 2 years and will continue to increase.  Water and Sewer costs have gone up.  This means that maintenance fees for condos have and will increase.  The cost of goods and services, transportation, building supplies and just about any product shipped to Hawaii have increased and will continue to rise at a greater rate.  This gas increase will trickle up to reflect higher Hawaii construction costs and higher Hawaiian real estate prices overall.

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Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Best Hawaii Realtor!

gas prices here are ranging from $3.89 at Sam's Club to $4.09 at Shell and Chevron,

Nov 23, 2011 12:42 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Bruce. You live in a very special and beautiful place. Hearing the costs, I don't know how normal people can afford it. Sorry, but that's too bad.

Nov 23, 2011 02:12 AM
Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Best Hawaii Realtor!

Thank you Sheila!
I've lived here for almost 40 years!  If you "live in Paradise, you pay the price".  I've stayed here, so there must be something about Hawaii that's very special.  The weather and the people are 'mild'.  You just have a different style of living.  Example: Most of the homes have "SINGLE" wall construction rather than double wall.  Most homes do not need or use air conditioning. 

Nov 23, 2011 03:52 PM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Bruce, our utilities have gone up and down in the past few years. We moved this year into a larger home but it's much more energy effecient and all the bills have gone down.

Nov 25, 2011 09:07 AM
Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Best Hawaii Realtor!

Congratulations Connie on moving into your new home!  Always a good feeling to be in refreshing surroundings.  I assume you're under the TVA?  Hawaii electricity is derived mostly from various fuels and some biomass.  The trend here is to install solar for water heating and photo voltaics.  We had a friend install PV on their home...cost was $50,000 and their electric bill went from $350 a month down to less than $100.  It will take several years to recoup the original investment.  A few years ago, we installed a solar water heater for $5,000 but got back $3000 in tax breaks.

Nov 25, 2011 11:13 AM
Lanre-"THE REAL ESTATE FARMER" Folayan
Samson Properties - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Bruce oh how times have changed. Bills keep going up while people's income and investment keep decreasing. I don't like that at all. By the way your comment that you made on Elva's blog inspired me to write this blog Before-you-give-up-on-a-subdivision-neighborhood-you-have-been-farming-for-over-4-years-please-this. Have a great weekend.

Nov 25, 2011 03:41 PM
Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Best Hawaii Realtor!

Hi Lanre,
Your blog Before-you-give-up-on-a-subdivision-neighborhood-you-have-been-farming-for-over-4-years-please-this.  It hit the nail on the head.  That was a fantastic blog.  I am humbled, thank you for the Kudos. 
I forgot to mention, a month ago, I received a call from a contact in my SPHERE,
she said "at work there are maybe a dozen people who are married to a REALTOR or are part timers themselves and they all have asked me about buying a property.  However, EVERY year, for the past 20 years, you have sent me a card each Thanksgiving or Christmas and I APPRECIATE that.....so....long story short, we are closing on her townhome purchase in 3 weeks.
blessings and Aloha!

Nov 25, 2011 05:49 PM