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Investors Shift Their Focus to Hawaii Real Estate During 2012 Summer Months

“Sell in May and Go Away”

An old adage in global stock markets refers to the belief that the period from May to October has significantly weaker growth in earnings than October to April. Investors who follow the investment strategy sell stocks in May and hold the proceeds in cash until more favorable conditions come Fall. This was especially true this past May, according to the Wall Street Journal.

Investors are sitting on cash in the typical summer pattern. However, this summer season is different. Many investors are seeking an alternative to an October re-entry into the stock market, due to the U.S. elections and European economic concerns. In efforts to diversify, investors are shifting their focus to real estate.

Naysayers Are Calling 2012 the Bottom of the Housing Market

According to Hawaii noted economist, Paul Brewbaker in a recent speech I attended at the Four Seasons Hualalai, we will look back upon 2012 as the year we should have bought real estate. Further, there is no place like Hawaii in the world to call home

Bloomberg’s interview with Carrington Mortgage EVP and CEO of RealtyTrac, Rick Sharga, talks about the U.S. housing bottom. Opportunity and Location, are key.

Opportunity to buy at the bottom of the market, opportunity to diversify out of the stock market, opportunity to put cash in a true ‘brick and mortar’ safe and tangible haven. Location, location, location, where people want to live – the dream of owning a piece of Hawaiian paradise may never be as accessible as it is today. Savvy investors have already begun to take advantage of the 10 year lows in Hawaii real estate, and the feeling is palpable in the real estate community. When opportunity knocks, you’d better answer the door!

Stay tuned for Part 2 of my “Sell in May” series…”A Buyer’s Strategy, Cash is King”

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Shaylyn Kimura, R(S)

June 24, 2012

Great news for prospective buyers! I recently read in a national real estate publication that 2012 is shaping up to be the year of shoulda, woulda, coulda for fence-sitters. Get off the fence and buy now!

Shaylyn Kimura, R(S)

June 24, 2012

Great news for prospective buyers! I recently read in a national real estate publication that 2012 is shaping up to be the year of shoulda, woulda, coulda for fence-sitters. Get off the fence and buy now!

Katie Minkus, R(BIC)

June 25, 2012

Great article and perspective, Karen! From where I sit, I think those buyers looking for a screaming deal “should’ve” bought last year – in 2011. Seems to me we’re going to have an inventory/price adjustment problem soon. Cash continues to be king. (And believe me, I’m answering the door!)

Katie Minkus, R(BIC)

June 25, 2012

Great article and perspective, Karen! From where I sit, I think those buyers looking for a screaming deal “should’ve” bought last year – in 2011. Seems to me we’re going to have an inventory/price adjustment problem soon. Cash continues to be king. (And believe me, I’m answering the door!)

Todd Barrett, R(S)

June 25, 2012

Paul Brewbaker’s comments and market analysis was extremely insightful Karen. It’s all about ‘opportunity’ and ‘location’!

Todd Barrett, R(S)

June 25, 2012

Paul Brewbaker’s comments and market analysis was extremely insightful Karen. It’s all about ‘opportunity’ and ‘location’!

Annie Mendoza, (RS)

June 25, 2012

Very insightful! Our buyers seem to be doing just as you describe here. Prices are going up in our territory. But just like in stock market, it validates that it’s still a good time to buy! When investors see the sale prices ticking up, they know they’ve just seen the bottom and there is only one direction to go! Up:-) Mahalo, Karen!

Annie Mendoza, (RS)

June 25, 2012

Very insightful! Our buyers seem to be doing just as you describe here. Prices are going up in our territory. But just like in stock market, it validates that it’s still a good time to buy! When investors see the sale prices ticking up, they know they’ve just seen the bottom and there is only one direction to go! Up:-) Mahalo, Karen!

Diane Chavez

June 26, 2012

Karen-I remember in 2001 driving buyers around and for months homes sat on the market that were screaming deals. All of a sudden everyone decided to buy….the market always seems to be driven by strong motivators…as Real Estate prices start to go up….no one wants to look back and think….I missed it so they jump in. We are seeing the cycle repeat itself.

Diane Chavez

June 26, 2012

Karen-I remember in 2001 driving buyers around and for months homes sat on the market that were screaming deals. All of a sudden everyone decided to buy….the market always seems to be driven by strong motivators…as Real Estate prices start to go up….no one wants to look back and think….I missed it so they jump in. We are seeing the cycle repeat itself.

Pat Strausse

June 28, 2012

Karen, thanks for a most interesting blog – can’t wait to see part two. As I’m sure you’ve heard, one of the very top investors of all time – Warren Buffet – commented on CNBC “that buying single-family homes is such a great investment right now, if it were practical, he’d buy a couple hundred thousand of them.” Hey, we can help him buy a few hundred as a start!

Pat Strausse

June 28, 2012

Karen, thanks for a most interesting blog – can’t wait to see part two. As I’m sure you’ve heard, one of the very top investors of all time – Warren Buffet – commented on CNBC “that buying single-family homes is such a great investment right now, if it were practical, he’d buy a couple hundred thousand of them.” Hey, we can help him buy a few hundred as a start!

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