Hawaii's real estate prices rise: the nightmare of 2018
Hawaii, a wonderful paradise that is currently turning into a hell for the real estate market. According to statistical data, the average price of a single-family home has reached its historical maximum. 800,000 dollars, this is the price.
Investors' interest in buying an apartment in Hawaii is worrying, so much so that even the research on this much sought after destination, become increasingly rare and focused only on short periods of stay.
The last survey took place just in December. From month to month prices rise by 3% more than the previous ones, causing a property bubble principle.
The cause of this increase has its roots in the volcanic eruption of the volcano Kilauea, which destroyed 600 houses.
Just to get an idea, the amount of lava escaping from the volcano is enough to cover 50,000 Olympic swimming pools. It is therefore not difficult to understand both the magnitude and the severity of the damage, not only in the real estate market, but in the entire economic system.
Because of this unexpected phenomenon, it has been necessary to increase the level of property prices, most of which are inherited and extremely luxurious (the villas dating back to the 60s are among the most popular on the real estate market).
The problem is not so much the increase in property prices. How much the inability to resell them.
Again according to statistical data, the number of condominiums sold in the month of November has fallen by 15%.
The chairman of Honolulu's Board of Relators, Darryl Macha, said that 'sales in the residential market in Oahu are normalizing, despite the increase in inventories in the last quarter of 2018' '.
However, it is necessary to implement a policy aimed at leveling prices, considering that more than 2/3 of the houses sold on the market are priced at more than 800,000 dollars, while the condominiums do not fall below $ 500,000.
It should also be remembered that the mortgage insolvency was also increasing after the volcanic eruption, exposing many individuals to the risk of foreclosure.
Added to this is also the high rate of delinquency, which obviously does not help Hawaii to recover.
It is hoped that 2019 may be the year of recovery of this paradise that is experiencing a sudden but unfortunately extremely long bitterness.
Investors' interest in buying an apartment in Hawaii is worrying, so much so that even the research on this much sought after destination, become increasingly rare and focused only on short periods of stay.
The last survey took place just in December. From month to month prices rise by 3% more than the previous ones, causing a property bubble principle.
The cause of this increase has its roots in the volcanic eruption of the volcano Kilauea, which destroyed 600 houses.
Just to get an idea, the amount of lava escaping from the volcano is enough to cover 50,000 Olympic swimming pools. It is therefore not difficult to understand both the magnitude and the severity of the damage, not only in the real estate market, but in the entire economic system.
Because of this unexpected phenomenon, it has been necessary to increase the level of property prices, most of which are inherited and extremely luxurious (the villas dating back to the 60s are among the most popular on the real estate market).
The problem is not so much the increase in property prices. How much the inability to resell them.
Again according to statistical data, the number of condominiums sold in the month of November has fallen by 15%.
The chairman of Honolulu's Board of Relators, Darryl Macha, said that 'sales in the residential market in Oahu are normalizing, despite the increase in inventories in the last quarter of 2018' '.
However, it is necessary to implement a policy aimed at leveling prices, considering that more than 2/3 of the houses sold on the market are priced at more than 800,000 dollars, while the condominiums do not fall below $ 500,000.
It should also be remembered that the mortgage insolvency was also increasing after the volcanic eruption, exposing many individuals to the risk of foreclosure.
Added to this is also the high rate of delinquency, which obviously does not help Hawaii to recover.
It is hoped that 2019 may be the year of recovery of this paradise that is experiencing a sudden but unfortunately extremely long bitterness.
