Have we seen the best days of Hawaii? When I was growing up, I heard this question twice. The first time was after 9/11. I recall watching the news and how people were afraid to slow down. The second time was when I was in college during the 2008 housing crisis.
Although Honolulu has moved into Tier 2 of reopening, our future looks gloomy. Our economy basically stopped. Although tourism just reopened, NPR reported that there could be a $2 billion tax shortfall. More so, earlier this year, Gov. Ige warned that there might be a 20% pay cut for all public workers.
Hawaii, especially Honolulu, has a high cost of living. Will property taxes increase? Will lawmakers create new taxes to generate tax revenue? In San Francisco, the Mayor proposed a new business tax since the city is facing a $1.7 billion deficit.
Nick Saban, the head football coach for the University of Alabama, famously said he never "wastes a loss." 9/11 will go down as one of the most tragic moments in world history. From that event, our travel safety has increased. As our economy recovered after the housing crisis, we learned about the dangers of sub prime mortgages and being over leveraged.
What lessons will we learn from COVID-19? Is it to have a diverse economy? Will medical technology advance? On a smaller scale, how has COVID-19 affected the real estate industry? I have noticed there is a large demand for single family homes since people want to get out of clutter of living in a condo. What is interesting is the construction boom of Kakaako made people leave their single family homes to the luxuries of high rise condos.
Whatever happens, Hawaii has always remained resilient.
Robin and I recently closed on a single family home in Pacific Heights. We got word the house was going to be for sale; Robin was able to show it before it was listed. Our buyers put in an aggressive offer and the sellers accepted!
Thankfully we moved quick. Shortly after our below list price offer was accepted, the sellers received a full price offer! Great timing, right? Robin and I cannot take the credit since our clients were very motivated to become homeowners.
The entire process, from start to finish, was barely two months. Our buyers got prequalified with a local lender, we checked out properties, and we submitted an offer. There is no secret to buying a home. You just have to commit to the process.
Commercial Real Estate
Robin and I are working on two commercial real estate transactions. First, we are helping a local non profit search for a new office space. Second, we are helping a law firm purchase a condo office space. Need any assistance with commercial real estate? Give me a call!
The Hawaii Tourism Authority announced that 5,578 people arrived to Hawaii last Thursday. 2,287 people indicated that they were here for vacation. As we enter Tier 2, how can we safely open up our economy without spreading the virus?