Hawaii Real Estate

Credit Suisse published an analyst’s report on the National Association of Realtors Pending Homes sales index numbers for February 2010.  The 8% rise was higher than anticipated. 

Some of the comments in the report are as follows: 

This is a pleasant surprise, as the increase is
contrary to the weakness NAR’s own commentary about weather-related
weakness in February, as well as the slight decline seen in our February
Survey of Real Estate Agents. We think this supports our view that contract
activity will surge ahead of the April 30th tax credit deadline. Activity likely
picked up further in March, and we expect buyers to act with even more
urgency in April, although this brief surge will likely be followed by a lull in
activity similar to the drop-off in late fall/winter.

Credit Suisse says that despite the slow down in the existing home sales numbers released by the National Association of Realtors this past Monday, to expect a ramp up in sales to come as early as February .  In part, this comes because of the urgency of the tax credit and that mortgage rates remain low at about 5%.

“This should lead to higher closings from April through June”

Analysts at Credit Suisse published a report forecasting a further increase existing home sales.  The National Association of Realtors (NAR) are reporting the Existing Home Sales numbers for October on Monday, November 23, 2009.   The consensus for most analysts is that the number will rise 2.3% to 5.7 million sales, but Credit Suisse  estimates an increase of 6%  to 5.904 million.  They base this on the increase numbers see in the pending home sales index also released by the NAR. The Honolulu Board of Realtors housing statistics show an increase number of sales by 15% from last month for single family homes and 10% for condominiums.

The increase in the existing home sales could likely be a result of the first time home buyer tax credit and it remains to be seen if this trend will continue into 2010.