FED to the resuce! Will Hawaii real estate boom again?

Mark this day in history. It's the day the national housing and mortgage crisis turned around and the economy of America was boosted like never before. We hope.

With a 0.5% discount rate cut and a 0.5% Fed funds rate cut, the Fed did far more than anyone expected. While most expected a 0.25% cut in the Fed funds rate, I don't think anyone was expecting this huge move. It's a signal to all that the Fed is ready to act against a huge mortgage and housing crisis.

Mortgage rates should probably go UP today, but within a few weeks should come down nicely. We expect buyers everywhere to believe that now is the time to get back in the market. What do we expect for Hawaii real estate?

Well Hawaii's market hasn't slowed the way that other states have. I should say, Oahu's hasn't. The other islands have been going down for over a year. Oahu real estate should continue to slowly (or rapidly) climb, now that buyers have a better confidence about the market.

Buyers at this point should (we hope) believe that mortgage rates are going to be lower, that housing has seen its worst already, and that prices are going to go up again.

I have a few listings that have been sitting for a couple months, which is long in Oahu, since homes are selling in about 40 days. These listings should now see more activity. Realtors should start calling their buyers who were on the sidelines.

Time to start selling!