On this windy but still sunny and beautiful Hawaiian December 25th, I want to wish everyone a very Mele Kalikimaka! Whether you celebrate Christmas, Hanukkah, Festivus or anything in between, I truly hope it’s a joyous day and season for you and your family as we all head into the 2012 New Year.
What Rebound??
Hopefully 2011 was a great year as you reflect on all that’s transpired the past 12 months. From a Hawaii housing and real estate perspective, two stories come to my mind that pretty much sum up the past year. First, the housing rebound that largely never came. There has been an increase in volume, but sales prices have not risen as expected and we can now expect more of the same in the coming year according to the latest stats and projections. Whereas 2012 was supposed to herald a return to more prosperous times, concerns over European economies, the unanticipated and still fragile Arab Spring and tight lending guidelines have all served to keep the national economy — and housing — flat, even with still low prices and record low mortgage rates.
Grind to a Halt
The other story is the moratorium on non-judical foreclosures signed by Governor Abercrombie in the summer of 2011. That has had a rippling effect throughout the local housing market, even if the signs aren’t yet clearly visible. It has undoubtedly increased the timeline on which the banks and lenders will get through their shadow inventory of already repossessed homes — the faucet has been reduced to a very slow drip. Instead of continuing to process the foreclosures and churning through their pile of properties to speed the arrival of a more normal Hawaii housing market, the public backlash from the robo-signing and other lending practice discrepancies has brought about a policy that will attempt to modify these loans instead and keep owners in their homes. Noble, but it remains to be seen how many successful modifications are made in lieu of foreclosure. The jury’s still out on this one and while opinions are decidedly split down the middle, it remains a significant hallmark of the past year nonetheless no matter it’s result.
We can always hope for a brighter 2012. Who knows what’s in store in the coming year??
So from my family to yours, thank you for your readership and continued interest in this site. Please give me feedback on what you’d like to see here and what you’d find valuable. I’m open to all suggestions!
MELE KALIKIMAKA!