"Don't fight the Fed," is what people say about the stock market when the government prints (fiat) money like it's going out of style (it is.) Inflation is here, and even the Fed finally acknowledged that this week. What this means is that your dollar buying power is declining, especially in hard goods, physical things. Maybe not yet in services and labor, but that's coming too.
So why are Hawaii housing prices still rising like a rocket to the moon? #1 Inflation, #2 low rates, #3 low inventory, and #4 people fleeing to their perceived greener pastures. And the greenest pasture is in the tropical island paradise of Hawaii.
We saw strong sales in February, with single-family home sales increasing 5.3% and condominium sales soaring 41.1% over last year. Single family homes set a record median sales price of $917,500, a 20% year-over-year increase and a 3.9% jump above last month’s record of $883,000.
48.5% of single-family homes and 29.1% of condo sales sold above asking price last month, with an average of nine days on the market.
The dollar is estimated to be losing about 20% in value this year, so the smart thing to do is to buy real estate.