Hawaii Real Estate Blog

Hawaii ranked 10th in the government's ranking of states with the highest per-capita income growth rates in 2007, according to preliminary estimates released Wednesday by the U.S. Bureau of Economic Analysis.

The per-capita personal income growth rate was 6 percent in Hawaii in 2007, according to the BEA.

Louisiana had the highest per capita income growth rate, at 9.2 percent. Much of the gain in Louisiana was accounted for by the Road Home subsidies, which averaged nearly $1,250 per resident, according to the BEA. The subsidies were given to people whose homes had been destroyed or damaged by Hurricane Katrina.

Per capita personal income growth rate was the lowest in Arizona at 3.4 percent.

Personal income is defined as income received from all sources, including net earnings, rental income, and dividend and interest income.

Hawaii's unemployment rate in March was 3.1 percent, up from 2.5 percent in March 2007, according to the U.S. Bureau of Labor Statistics.

There were 20,500 people out of work for the month, compared to 16,300 the year before, the government said Friday. There were 20,900 people unemployed in February.

Nationally, the unemployment rate for March was 5.1 percent, up from 4.4 percent the year before.

Michigan had the highest jobless rate at 7.2 percent, followed by Alaska at 6.7 percent.

South Dakota had the lowest rate, 2.5 percent, followed by Nebraska, 2.9.

The U.S. Army has decided to base a Stryker Brigade at Schofield Barracks on Oahu.

The decision, told Tuesday to two Hawaii senators and one congressman, came after the Army completed a review of a final environmental impact study on the Stryker basing and found that Schofield was the best place for the brigade.

The Army's record of decision will be made publicly available on Friday.

Hawaii opponents of the 2nd Stryker Combat Brigade, including environmental and Native Hawaiian cultural groups, said the Army failed to adequately consider Mainland locations for the brigade.

A lawsuit filed by the groups has prevented the Army from continuing about $700 million in construction projects on Oahu, where Schofield is located, and on the Big Island to accommodate the $1.5 billion brigade.

The Army and other supporters of a Stryker Brigade say it is essential for national security and will be economically beneficial to the state.

The Stryker is an armored combat vehicle being used in the Iraq and Afghanistan conflicts. Brigades typically have more than 300 vehicles and require more than 3,500 personnel.

It's estimated that the Hawaii brigade will bring an additional 800 soldiers and their families to be stationed at Schofield and other bases. Businesses in the town of Wahiawa, located near Schofield, have been hit hard by extended overseas deployment of troops.

The number of foreclosures in Hawaii is up significantly compared with March 2007, but the number still is low in comparison with the rest of the country.

Hawaii had 120 foreclosure filings in March, down 16 percent from February, but up nearly 85 percent from March 2007.

Hawaii ranks 45th in the country for its foreclosure rate of one filing for every 4,167 households, according to the latest survey by California-based real estate research firm RealtyTrac.

Nevada had the highest foreclosure rate in the country for the 15th consecutive month. There was one filing for every 139 households.

California had the second highest foreclosure rate, with one in every 204 households receiving a filing in march. Florida ranked third, with one filing for every 282 households.

California had the highest number of foreclosures at 64,711.

Nationwide there were 234,685 foreclosure filings in March, up 5 percent over February and up 57 percent from March 2007, according to the report.

Rates for 30-year mortgages at Hawaii's four largest banks rose this week, reflecting the rise in mortgage rates nationally.

First Hawaiian Bank and Central Pacific HomeLoans each offered a 30-year, fixed-rate loan for 5.625 percent with 2 points, according to data compiled by the Honolulu Board of Realtors.

Bank of Hawaii offered the same loan for 5.75 percent with 1.5 points. American Savings Bank also offered the 30-year loan for 5.75 percent but with 1.75 points.

Nationally, the average rate for a 30-year, fixed rate mortgage rose to 5.88 percent with average 0.5 point, according to mortgage giant Freddie Mac. That was up from and average 5.85 percent last week, but down from a year ago, when the 30-year fixed-rate loan averaged 6.17 percent.

"While prime, conforming rates still remain at historically low levels, long-term mortgage rates did drift slightly upwards this week on signs that the economy may have a little more strength than what financial markets forecasted," said Frank Nothaft, Freddie Mac vice president and chief economist.

Consumer spending in the fourth quarter of 2007 was revised upwards in the final estimate of gross domestic product, and personal income growth in February was the strongest since July 2007 while the manufacturing index unexpectedly rose last month, Nothaft said.

"Strong economic growth can lead to an up-tick in inflation fears, which tends to place upward pressure on mortgage rates; however, fears of economic recession, too, are putting pressure on the markets," he said.

Here are the March 2008 Residential Resale Statistics, Enjoy!

During March, sales of 282 single-family homes and 392 condominiums were reported through the Board’s MLS, decreases of 14.5 percent for single-family homes and 27.5 percent for condominiums, compared to the same month last year. This brings total single-family home sales on Oahu to 673 for the first three months of 2008, a decrease of 22.2 percent over the same time period one year ago. Total condominium sales through February were 1,037, a 23.8 percent decrease from last year. The median prices paid for Oahu properties were $628,000 and $329,300, respectively, a decrease of 2.4 percent for single-family homes from the March 2007 price and an increase of 2.6 percent for condominiums. The total dollar sales volume generated in the housing market for the first three months of the year was $974.1 million, a decrease of 18.0 percent or $213.1 million, compared to the $1.187 billion produced one year ago.

There is 2.4% decrease in Single Family Homes Median Sales Price from last year, while a 2.6% increase in Condominium Median Sales Price in February 2008 compared to the same month last year.

There is a 14.5% decrease in Single Family Homes Sales Volume from last year; and, a 27.5% decrease in Condominium Sales Volume in February 2008 compared to the same month last year.

“The Oahu median prices for both single-family homes and condominiums are still constant, while the sales volume for the market has slowed,” said Dana Chandler, President of the Honolulu Board of REALTORS®. “Even with the instability in the finance industry, the market for Oahu residential properties appears to be holding, unlike the very negative conditions we hear about on the Mainland.”

“There is a continued demand for residential properties, especially in the high-end, which could be an outgrowth of the weaker U.S. dollar and other local factors, such as our low unemployment and pleasant climate,” added Harvey Shapiro, Research Economist at the Honolulu Board of REALTORS®. “The limited availability of land and housing on Oahu should prevent any significant downturn in prices.”

The unemployment rate increased to 2.8 percent in Honolulu in February, according to the latest data from the U.S. Bureau of Labor Statistics.

The rate was up from 2.1 percent in February 2007.

There were 12,600 people without jobs for the month, compared with 9,700 in the same month the year before. That number is slightly down, however, from the 12,700 unemployed in January.

National unemployment rates for February were higher year over year in 246 of 369 metropolitan areas, lower in 101 areas and unchanged in 22 areas.

Only 11 metropolitan areas including Honolulu registered jobless rates below 3 percent. The national unemployment rate in February was 5.2 percent, up from 4.9 percent a year earlier.

Logan, Utah-Idaho, and Houma-Bayou Cane-Thibodaux, La., had the lowest rates for the month, at 2.5 percent each.

Two highly agricultural metropolitan areas had the highest rates: El Centro, Calif., at 15.9 percent and Merced, Calif., 13.4 percent.