Impacts of Covid19 on the Hawaii Real Estate Market
Did you miss the live streaming of Economist Paul Brewbaker on May 5, 2020 regarding Impacts of Covid19 in the Hawaii Real Estate industry? If so, here are some of his salient points:
1: Adapting to the new normal of Hawaii’s housing market will involve a lot of hard work. Switching to using digital tools has made working from home a somewhat manageable ordeal. The bright side is that the cost of doing business should continue to drift downward because real estate transactions continue to move toward an e-trade model where human contact is minimized.
2: There will be some compression in valuations and an increase in the mortgage delinquency rate and deferral rate. The sales volume in real estate will decrease, but not as much as the stock market.
3: Since August 2019, when the vacation rental ban went into effect, July 2020 projections show a continued decrease in the use of vacation rentals. Because of this, vacation rental owners are trending toward selling these assets. Consequently, COVID19 should result in an inventory pile-up.
4: But despite a short term decrease in activity and sales volume, housing is a long term asset. That means real estate continues to be a reliable and proven asset. As in all cycles, we should look through this crisis to the recovery that will follow as we go through the new normal.
To watch the full webinar, click on this link: