Waikiki Real Estate Market

April 6, 2010 by  
Filed under Real Estate

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The Waikiki real estate market is facing mixed signals as it continues to combat the lingering effects of the economic recession. According to a March 24, 2010 article in the Honolulu Advertiser, rents in the city of Honolulu remain the second highest in the United States. This piece found that “A modest increase in rent for a typical two-bedroom home in Honolulu last year helped the city maintain its ranking as the second most expensive rental market among 210 U.S. metropolitan areas, according to a national survey.
Fair market monthly rent for a two-bedroom home on , or Honolulu County, rose 4.5 percent in the fourth quarter of last year to $1,704 from $1,631 in the same period a year earlier…” The article, written by Andrew Gomes, continues to say that “Based on Honolulu’s median price and interest rates, it would take an annual income of $134,328 to afford such a home assuming a 10 percent down payment and conventional mortgage underwriting guidelines that suggest no more than 28 percent of household income be used to pay the mortgage, property taxes, and insurance.”

Some national political maneuvering may prove to be beneficial for homes for rent, according to a March 26, 2010 article from KITV 4. This piece found that “ banks and other lenders said Friday President Obama’s new initiatives to prevent foreclosures could be a great help in keeping local residents in their homes. Hawaii foreclosures are at record highs with 11,164 homes in foreclosure in the state, 5,851 on Oahu, 2215 homes on Hawaii Island. 2141 on and 957 homes on Kauai.” The piece, written by Denby Fawcett, continued to state that “Bank of Hawaii said the new features in the Obama plan should help prevent more foreclosures.”

will hopefully be impacted particularly strongly by a strong rebound in resort market sales, according to a March 25, 2010 article in the Pacific Business News. The piece found that “Home sales in Hawaii’s resort market began to show a rebound in 2009, with just a 2 percent decline in sales from the previous year, according to a new report.”