In Hawaii, we are having a crisis of our own. The ripple effect from the declining tourism industry is on a roll. Because the housing market is so bad in many places on the mainland it's obvious that the number of our incoming vacationers has dropped over 17% for last month alone. No telling what this month's figures will bring.
Then starts the ripple effect of a declining tourism industry due to the decline in incoming visitors to Hawaii. Businesses related to tourism are losing money. Hotels, Restaurants, Transportation (tours and taxis), Entertainment, Retail Stores and the like continue to lose money and many are closing. From that point the tax office is collecting less money so there now becomes a issue of cutting spending on State and City & County programs. And so on and so forth.
On the other hand our malls are still thriving from our local consumers. On the other hand our residents are making the best of what they have and strive to keep our businesses running. On the other hand there are people that still have needs. On the other hand there are military deploying out and other Military PCS'ing in to the many bases on Oahu. On the other hand.....it depends on YOUR situation.
The big difference with the Housing Market in Hawaii is the fact that we have just so much buildable and usable land. Therefore, there is always a need for housing and the decision to buy or sell will ALWAYS remain a 'situational' or 'circumstancial' event that leads the consumer to make their decision.
- Military Relocating to Hawaii - and they would rather spend their housing allowance alloted to them by the government to put into their OWN home.
- A Job Transfer and Relocation to Hawaii and they have outstanding credit and money to put down.
- They know that if they are paying the same amount in rent as a mortgage payment it makes sense to get their own tax deductions at the end of the year.
- They are Relocating to Hawaii and Retiring here and therefore have no use for throwing their money away on rent.
- Prices are reasonable in some areas and they are able to get a good price and negotiate.
- Hawaii Residents who are tired of paying rent and have no plans on leaving. They can afford a comfortable home and are not overextending themselves.
Due to the ongoing financial crisis there is still one thing left to consider.
THE BASIC NEEDS FOR ALL HUMAN BEINGS.
Food, Water, Clothing and SHELTER.
The Will to Survive.
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© 2008 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog. All rights reserved.
Celeste "Sally" Cheeseman is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.
© 2007-2012 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog.
All rights reserved.
Great post Sally - as beautiful as Hawaii is, all of America is affected by the current market conditions. It's not just housing or real estate, it's tourism, travel, hotels, automobiles, airlines - the list is long. We can either push through and conquer or fall back and hide.
Hi Sally, Thank you for your post. It also seems like the Aloha Airlines/ATA closures have affected our tourism, and therefore our Buyers. It's nice to see the perspective from another island.
Woo-Hoo: The trickle down effect is effecting us all. It's terrible. Here, in a resort area, we've also been hit, as 50% of our homes are part-timers, thus 50% of our buyers are part-time buyers. However, we are beginning to see buyers coming out and "really" looking.
Interesting post, Sally. Seems that every region has its own set of issues these days, but you have such a great attitude! I like that you also found all the "on the other hand" stuff to show there is an upside in your market too.
The military has made a big difference in our economy. Being on an island with limited land available also has an effect on real estate.
Aloha Sally,
You've know I've been wondering about travel in general. Athough some things are down, I'd bet you don't miss the crowds.
Lynda:Course not! And as for real estate...sales are down...but all of us who are persevering are surviving...
Randy: Yes it has and it always has:)
Linda: I certainly will not fall back .....they need me :)
Courtney: Our tourism is affected by oil prices, the market on the mainland, banks closing, mortgage companies closing and everything else. When other people aren't making money...they don't have the luxury of vacationing here...therefore our tourism industry takes a dive. We've lived through all and always strive to keep alive.
Kat: That's for sure...the serious ones...the qualified ones...are the ones buying...which is a good thing. No weird stuff going on ...and if it had been this way always ...we wouldn't be in this pickle. :)
Susan: There's an upside to every local, neighborhood market nationwide....we all have to look for it and see where the strength lies.
Last year a 60 day advanced round trip ticket from Phoenix to Honolulu was about $359. Since Aloha and ATA are no longer flying, that same 60 day advance fare is now almost $700. I recognize that gas prices increased....but gas prices have not doubled. The higher plane fares are also attibuting to Hawaii's declining tourist industry and economy.
Mmmm. I suspect that "THOSE OF US WITH SAVINGS will survive."
The rest will be getting jobs with paychecks.
Hi Sally - exactly - the basic need of shelter, and the rest will follow. There are always positives if one is willing to look for them, just as you did in this post.
Ann
Great post Sally I think that the need for a roof over ones head will keep us in business as long as we can remain flexible and responsive to the current needs of the marketplace. You are soooo right!
I think tourism is down everywhere, but the flights to Hawaii are certainly expensive! I bet many people are staying closer to home these days or choosing not to take a vacation this year.
Leolinda: It's everything that has gone up...and it's that people are not making enough to go on vacation...let alone pay higher prices. I'm confident it will turn around ...it always does. (this is slow season anyway :)
Lenn: I've been staying afloat and it's the same as it has always been....work, pay bills and work and pay bills. As long as I keep doing what I've been doing I'll be successful (survive) I do believe that was has been the driving force for me is the military that come in and out of Honolulu County (our island). I have one vet listing this morning and an AF member arriving from San Diego this afternoon. Even our office rental list keeps depleting and adding up and so on. I don't think it only has to do with savings...it's lifestyles and budgeting too. I'm cheap anyway so I didn't really change anything.....yet.
Thanks Ann...why would I want to think bleakly? lol! I truly believe that the ones who do keep a positive outlook will surely survive. They may have to get a paycheck job like Lenn said...but hey...it's not so bad. I've been working part time for C21 for years on top of Sally Agent :) It always keeps me afloat during slow times :)
Exactly Paddy! I (as many others) have the ability to change in changing times...what worked before may or may not work now...but as chameleon agents....we adapt to whatever is in our current local market. We take everything into consideration...including other businesses. And we Blog and remain active for that one client that is relocating to Hawaii. :)
Kelly: You're betting right. And it's costing many a business here too. I don't vacation ...at all. Except here at home on my pc :)
I have often thought about how the current economic situation would affect Hawaii. Hawaii is certainly a destination point, and many people vacation there (including me - I love Hawaii). It is unfortunate that the local businesses are being affected. I know when I was in Maui in August, I was able to get flight and hotel within a week of planning (unheard of). And the flight wasn't full. It just felt slower when I was there.
Sharon: I think it's nice that it's not all crowded (still crowded but not as much) all over the place...the traffic is less .....okay, maybe not. LOL. One thing is for certain...many businesses in town are suffering or closing.
Sally I would think that Hawaii is one of many places that tourism is down. Costs are going up and incomes are not. Vacations are most likely one of the first things that people cut back on.
I know many think it is expensive to come to Hawaii, but it really isn't. I have traveled a fair amount and have found Hawaii to not be that bad compared to some of the places I have been.
Hey there.....the most basic of needs...food and shelter. We will again see the days when people can afford to not just feed their families but also go on those vacations......I know that I will be back there, not this year, but soon :)
George: So....are you flying over to feed our economy :)
Randy: It really isn't if they shop for deals...:) We know how and we live here lol!
Kathy: Well, at my age I need the clothing too..heck if I'm going to be running aroun my house eating with no clothes on LOL!
Sally well thought out post. I do have one question, how many hands do you have? lol. Great job!
YOUR POSITIVE ATTITUDE GOES A LONG WAY... CONGRESSWOMAN SALLY CHEESEMAN...
Change we can believe in.
I can imagine once we start to see a decrease in military personnel abroad, Hawaii will see an influx.
Fred: LOL! That's pretty funny. I guess I keep changing hands...not enough hands for what is possible :) :)
Hey Earl....wow...I really don't believe I would ever be a political big wig....but I sure love your words....
Change we can believe in.... and I'm SURE that our military will once again be protecting us way out here in the Pacific. Thanks for your input Earl. The simple truth.
Sally my friend you're pretty funny....and don't even bother writing that "W" word LOL :) You win...food, shelter, and clothing for everyone over 50 :) :)
Sally, Hawaii is one place that I would like to return to, but it is going to have to waite a little longer.
And OH YA if we all did the Adam and Eve thing we would not have to worry about shopping for cloths and that would leave more money for traveling ......... LOL
Sally - I am glad that in spite of it all that you have a good outlook for your market. Our's has it's problems too, but we really are fortunate in the Birmingham area, I am grateful for that!
I hope I can be one of your tourists sometime before too long!
Kathy: underlined the clothing now eh? lol!
George: So what does one do....board the plane with no luggage and a towel? lol!
Ann: I hope so too....would be nice to meet you!
Sally if I got on a plane with nothing but a towel I would be the only one on it within minutes ....... LOL
Thank you for the coffee :) :) :)
HI SALLY!
We've felt the pinch here in Williamsburg this season. So I totally understand. Tourism was down in our area this season. It will really slow down during the winter months. We're hoping things change as the Spring nears.
Why in the world are folks not going to HI? I would come and never leave again!!!
All the best,
we feel this with a lot of issues - living in a resort community where tourism is our main product - many things can tilt the tables
Sally - We also suffer here in Florida when the tourists forget that this is also a destination! We have been pretty lucky lately that our European and Canadian visitors have remembered where our state is!