Hawaii Foreclosure Properties: A Good Chance to Invest in a Market with Stable Property Values

29 January 2008

Author: admin Posted under Foreclosure homes

Hawaii is often overlooked when it comes to foreclosure properties. For starters, a lot of real estate and foreclosure properties news in Hawaii escapes the attention of major media here in the continental United States. Its isolated location and insular market often result in market trends and climates that don’t reflect national trends, and it can sometimes escape the influence of what’s happening in other states.

However, this isn’t always entirely true. Like much of the rest of the country, Hawaii has also experienced a significant increase in the amount of foreclosure properties coming on to the market in the past few years. And, like other states, 2007 saw a high in the foreclosure rate for the state.

But what is interesting about the foreclosure homes scenario in Hawaii is that despite rising foreclosure rates and more homes coming on to the market, property values in the state have actually been slightly on the rise over the past few years. In other regions of the country, the sharp increase in foreclosures have actually been a large part of the cause behind falling home values.

But in the case of Hawaii, strong demand for real estate has kept home prices on the rise, which means that this may be the perfect time for potential investors to get involved in buying Hawaii foreclosure properties. The flooded foreclosure market has already started to attract more buyers, since foreclosure properties at auction in the state often fetch prices that land anywhere from 10 to 50% off their actual market value. This can mean a great chance for huge profits.

2008 is primed to be a big year for foreclosure properties, and this goes for Hawaii as well. Although the Federal Reserve recently put a cap on the interest rate, this is more of a band-aid solution than a long term one. If you’re considering investing in Hawaii real estate, foreclosure properties are certainly worth looking into over the course of the next year. Watch out for homes in areas that are primed to continue growing in value, such as those with good educational systems that are near attractive features and amenities.

But be careful when getting involved with mortgages. Despite the fact that property values are climbing, the market is still slow in Hawaii, and investors are wary especially given the current real estate climate in the rest of the country. Don’t jump into short term adjustable rate mortgage thinking your foreclosure properties are sure sells. Speculation of this kind is what brought about the crisis in the first place, and you don’t want to be stuck making expensive monthly payments on homes you cannot sell.

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