In times like these, the last thing anyone wants is more bad news. With the economic recession affecting countries around the globe and with the recent spread of the H1N1 virus, everyone wants to hear some good news for a change. Unfortunately, economic downturns and worldwide influenza outbreaks have widespread effects, and Hawaii is still experiencing the impact and consequences of both those occurrences. The most recent effect on Hawaii has been a steady rise in local foreclosures.
With families around the country having less disposable income to spend on traveling and vacations, Hawaii’s tourism industry has suffered. This decline in tourism has been further exacerbated by Japan’s depressed economy as well as the effect of H1N1 or swine flu on the number of tourists arriving from Japan. In fact, the University of Hawaii Economic Research Organization (UHERO) estimates that the number of total visitors to the state will drop from 6.7 million in 2008 to 6.25 million this year, a decline of 6.8 per cent. Also, the occupancy rate for Hawaii hotels is expected to stay below 70 per cent for the next two or three years, with this year’s occupancy rate averaging 66 per cent.
Unsurprisingly, this drop in tourism is contributing to rising unemployment rates and declining personal income. A significant decline in the construction industry is also having a major effect on these falling rates. And together, all of these problems have led to Hawaii having the 15th highest number of foreclosure filings per household in May, the state’s worst ranking since RealtyTrac began reporting foreclosure rankings in January 2005. Specifically, Hawaii had 816 foreclosure filings in May, which is equal to one foreclosure filing for every 621 households. Of this total number, 399 were Honolulu foreclosure filings while the Big Island had 168 filings and Maui had 171 filings.
While 816 foreclosure filings is still better than the country’s national average of one filing per every 398 households, it represents an approximately fivefold increase as compared to May 2008. However, it’s important to keep in mind that RealtyTrac’s data includes commercial properties such as condotels and time-share units. With the recent decline in tourism, many of these properties have been affected by foreclosure. Also, not every foreclosure filing leads to the homeowner losing their home as some homeowners are able to resolve the situation before that happens, either by paying the default, refinancing or by selling their home.
Of course, looking on the bright side, for purchasers who are in the market for distressed properties, there are many opportunities for great deals at the moment. Moreover, despite all of the recent gloomy forecasts, the situation is not completely devoid of hope. Economists believe that the United States is reaching the trough of a business cycle and that national economic recovery is on the horizon. While Hawaii will likely lag somewhat behind national progress as a result of state contraction, it has been predicted that the start of a trend toward Hawaiian economic recovery is not far off.
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Top 100 Hawaii Realtors
In today’s tough economic times, it’s not easy to be a top producer, particularly in the real estate industry. This is true for all regions of the country, including Hawaii. Buyers are being more cautious and careful with their money, not wanting to overpay for properties and not wanting to make a wrong move. Moreover, there are fewer residential buyers currently looking for property in Hawaii while there are still more than 18,000 working real estate professionals in the state. However, despite all of the current difficulties, the top agents in Hawaii are managing to stay busy and are continuing to further the success of their real estate businesses.
According to Shara Enay’s article Being the Best in the Worst of Times: 5 Tips from Hawaii’s Top Realtors, there are five main skills and strategies that Hawaii’s most successful real estate agents all possess and utilize every day. The first invaluable skill that is shared by all of Hawaii’s top 100 realtors is the ability to play well and interact well with others, including clients and other real estate professionals. As Hawaii’s top-ranked realtor, Patricia Choi, is well aware, it’s important to be a good listener and to never bad-mouth fellow agents. By being enjoyable to work with, real estate agents build a solid reputation among both clients and other professionals, a reputation that will ultimately speak for itself.
Secondly, all of Hawaii’s best realtors understand that building strong relationships is absolutely invaluable. A significant percentage of most realtors’ business comes from repeat clients and referrals. This means that solid relationships can be a major source of a realtor’s revenue. Of course, top real estate agents like Hawaii’s number four ranked Sachiyo Braden understand that building and nurturing such relationships can take time, but it’s definitely worth the effort in the long run. For Braden, who deals primarily with clients from Japan, honesty, compassion and ensuring that all of her clients’ needs are met have been absolutely essential to establishing the relationships that have made her business so successful.
As Shara Enay notes in her article, Hawaii’s highest ranked realtors also put in the time and effort to build their brand. Establishing a successful real estate business takes hours of tedious work and exceptional organization. This means that persistence, solid communication skills and attention to detail are all essential. Of course, these same skills and attributes are also helpful with regards to the next important asset for top realtors, which is market knowledge. Ken Smith, who is the number three ranked realtor in Maui and the fifteenth ranked realtor in all of Hawaii, understands just how important it is for an agent to know their particular market. For Smith, knowing all the details about the Maui real estate market has allowed him to make the most of every listing and to provide his clients with the very best service possible.
Last but not least, all of Hawaii’s real estate power producers have aggressively marketed to their particular niche. Oahu-based Tracy Allen, who is Hawaii’s fifth-ranked agent by sales volume, knows that it’s extremely important to take the time to carefully prepare listings and to present them in the way that will be best received in the particular target market. Choosing the right media for advertisements and making the right impression through presentation are both absolutely crucial.
While the above skills and strategies are always important for realtors in Hawaii and all other parts of the country, they are even more important during the current slow economic times. By using their knowledge and abilities to the fullest and by dedicating extra time and effort to their clients and listings, Hawaii’s top 100 realtors have persevered through a slow real estate market and a bad economic situation to come out on top and to be the very best in difficult times.
Posted in Maui Real Estate, Hawaii Real Estate | 1 Comment »
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