Ulises, our current market is alive and healthy (since the beginning of the year 96 homes have sold and 94 parcels have sold). We are working at less volume and lower prices.

In my opinion, we peaked around April or May of 2005. Two major forces brought about this peak and subsequent downward trend. Boomers and easy money. In review the boomer years are from 1946 to 1964. The easy money seem to have started around 2001 or 2002.

The leading edge that lead to this peak was caused by the boomer generation when they discovered the relatively low prices we had. They started a buying frenzy back in 2004. They had easy money from what I call warm body or 98.6 degree loans, or from equity they had from pulled out of their over appraised homes in the eastern 48. ("warm body or "98.6 degrees" seemed to be the only qualifications needed to obtain a loan from any lender). When the easy money dried up the demand went down. When demand went down, volume went down taking prices down also.

What makes Hawaii now very attractive to Europeans are: our home prices are down about 34% AND the US dollar is down by about 23%. In other words when we compare Hawaii land and homes in April of 2004 to our current prices we now at a discount of about 57%!

We are now seeing interest from Australians and Canadians. Most seem to be purchasing raw land. Some purchase a small home.  Most of that Interest is comming in from our extensive web presence.

By the way, the Big Island is home to a major university and several of the leading telescopes in the world. Researches work in Astrophysics, Astronomy, Marine Biology, Volcanology and Agriculture. We have two international Airports. We export scores of varities of orchids, 12 kinds of antheriums, real vanilla, papayas and other agricultural produces. Because of Capt Cook England had a very heavy influence on Hawaii. Our culture includes the orgnial Hawaiian Merrie Monarch Festival, a Paniolo cowboy culture that rivals the cowboys on the main land, a Japaneese Culture, a Phillipino Culutre, a Chineese Culture, and a Portugeese Culture. Transplants like me come from all over the USA and world. We have black sand, green sand, and white sand beaches. Our land starts at sea level and goes to about 4200 Meters or 13,796 ft. It is said we have all but one of the climates in the world here. Today we have snow on our two mountains.

So please spread the word!
 

John Petrella, REALTOR®
ABR®, GRI, Principal Broker

Direct: 808.640.3953
Local@LocalHawaiiRealEstate.com

Local Hawaii Real Estate
Honesty • Integrity • Commitment

159 Keawe St., Suite 1
Hilo, HI 96720

REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

Ulises, Yes snow in Hawaii!!! 

Here is a link to the web cams on Mauna Kea.

http://mkwc.ifa.hawaii.edu/current/cams/index.cgi?imgindex=7

John Petrella, REALTOR®
ABR®, GRI, Principal Broker

Direct: 808.640.3953
Local@LocalHawaiiRealEstate.com

Local Hawaii Real Estate
Honesty • Integrity • Commitment

159 Keawe St., Suite 1
Hilo, HI 96720

REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

Aloha Ulises,

The practice of Real Estate is a very personal business.  It is forged on trust and respect for all parties involved.  These two items are biased to work better when all parties meet each other in person.  So, over the next two years, I plan to visit the folks I hope to receive referrals from.  

This is a win win situation for me and them.  I get to take some (tax deductible) time away from the office and I have the pleasure of interviewing and understanding the professional in his or her own culture.  In the process I hope to establish a long term relationship that will benefit all involved.  On the flip side, they get to interview me and decide for them selves if I am worth their the time and effort - which I am.