Hawaii Real Estate starts Here!

The number of foreclosures in Hawaii declined by 6% in July from July 2009.  This breaks the 37 month straight increase in foreclosures.  The numbers were concentrated in the early-stage filings, which includes trustee sales and default notices.  It is really unclear as to whether the lenders are holding back on these filings or if this is truly a decline, so we are still in a wait and see mode.

The National Association of Realtors® has joined forces with the National Community Stabilization Trust to help rebuild American communities devastated by the foreclosure crisis.

The collaboration will bring Realtors and the more than 1,400 state and local Realtor® associations into a side-by-side relationship with leading national nonprofits, as well as with state and local leaders, to develop comprehensive and targeted plans to rebuild communities. The partnership was made possible by the new federal Neighborhood Stabilization Program, which provides $6 billion to reclaim neighborhoods wracked by high levels of foreclosed and abandoned property, property disinvestment, extremely low prices and low resident confidence.

“Realtors® build communities and have the market expertise and property transaction tools to help local housing organizations understand local market conditions and how to put foreclosed houses back into the hands of stable homeowners,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “Working in this partnership with NCST gives Realtors® a seat at the community table to perform a leadership role in restoring vitality to communities across this great nation.”

“Neighborhoods across America have been decimated by high concentrations of abandoned and foreclosed homes. To reverse neighborhood decline, we need the Realtor® community working hand in hand with other housing providers,” said Craig Nickerson, president of NCST. “This ambitious new campaign will harness the unique abilities of Realtors® to remarket newly renovated homes and to rebrand the tarnished image of hard-hit neighborhoods.”

Through a nationwide network of state and local associations, Realtors® have been engaged in foreclosure prevention efforts since early 2009 as part of the NAR’s Foreclosure Prevention & Response Program.

“The outstanding leadership of many state and local Realtor® associations over the past year to become active participants in community problem-solving has proven that Realtors® are a valuable local community partner,” said Golder.

She cited strong efforts by the leadership in the Chicago Association of Realtors®, the North Metro Realtors® (Minn.) Association and the Realtor® Association of Great Fort Lauderdale (Fla.) as examples of Realtors® working through NSP to revitalize neighborhoods.

While NAR and the NCST will be working nationwide on this new initiative, a focus will be placed on enhancing capacity in states experiencing the highest levels of foreclosure and abandonment.

Beginning January 27, NAR will initiate contact with targeted state associations, based on severity of foreclosure problems. In addition, NAR will provide in-depth training and education materials developed and provided by NCST on www.realtor.org/foreclosure.

The National Community Stabilization Trust is a nonprofit organization that facilitates the transfer of foreclosed and abandoned properties from financial institutions nationwide to local housing organizations, and provides access to financing in order to promote productive property reuse and neighborhood stability. In collaboration with state and local governments, the Stabilization Trust builds local capacity to effectively acquire, manage, rehab and sell foreclosed property to ensure homeownership and rental housing are available to low- and moderate-income families. Visit www.stabilizationtrust.com to learn more about the National Community Stabilization Trust.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Everyone knows that there are bank owned properties out there in Hawaii.  I have heard that there are perhaps hundreds of bank owned properties or REOs (Real estate owned) properties out there on Oahu just waiting to come onto the market.  It has been the big shadow overhanging the market.  People have been expecting that these properties may come on the market all at one time just adding tremendously to the inventory and crashing prices.  Every state in the country has been worried about this, but especially those hardest hit with foreclosures:  Florida, California, Nevada, and Arizona.  So let us face the fear.  The fact is that there are no regulators that are forcing these banks to dump these properties on the market.  So if no one is forcing them to put these properties on the market, will they put them on the market now?  Perhaps not.  And more importantly perhaps not all at one time.  If the foreclosures have been kept back from the market, the banks think that the real estate prices will not only stabilize, but rise across the country.  They are more likely to gain much more by waiting and not flooding the market with inventory.  So, the longer we do not see vast numbers of REOs coming onto the market, the more people should see that there is more room on the upside with prices.  I believe that when the banks feel that the market is strong enough that they may see a possible time to make gains from their losses they will put a measured amount of their inventory on the market.  I do not believe, unless forced by regulators, that they will flood the market and depress prices further.