This morning, Les Christie of CNNMoney.com diagnosed the real estate market as ‘Bipolar’…
Bipolar is what comes to mind when diagnosing the post-homebuyer tax credit market. There are two separate forces pulling it in opposite directions, and experts aren’t yet sure which path the market will take.On one hand, sales and prices are rising, indicating recovery. On the other hand, so are interest rates and repossessions, which most certainly do not. And then there are the millions of foreclosures that need to be sold but haven’t yet been listed — so-called shadow inventory — that could derail a real recovery if they hit the market in floods….read full article
The ups and downs and conflicting direction of national news, as well as local statistics is enough to make buyers and sellers seek medication. On Kauai, the $8,000 Homebuyer Credit didn’t have as much pull as on the mainland, and the ‘hangover’ mentioned in the above article isn’t as noticeable.
However, the uncertainties of rising interest rates, new foreclosures and shadow inventory are headache material.
Buying a property on Kauai is more than just buying a home – it’s putting dreams into reality. Seeing past the headache and worries from other markets, it may be the time to do as Warren Buffet says; “Buy when others are selling, and sell when others are buying.”
3 Reasons to buy Kauai real estate now;
- Interest rates are poised to increase (no debate about that). Money will cost more as you wait.
- Market fluctuations are likely to continue, but with the number of sales increasing – there’s more competition than last year for desirable properties. You’ll need to be willing to weather through the ups & downs of the next 1-2 years. Real estate has always been a long-term investment. If it makes sense for your 5 years goals, worth trying!
- Foreclosure values are setting the market – now’s a great time to negotiate on non-foreclosures using short sale and REO comparables.
For more information on the Kauai real estate market, contact me. I’m here to help.