Home buyers on bailout impact - Hawaii News Now - KGMB and KHNL

Home buyers on bailout impact

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Berton Hamamoto Berton Hamamoto
Keith McClintock Keith McClintock

By Zahid Arab - bio | email

KAILUA (KHNL) - The bailout's impact is also expected to have an affect on Hawaii's housing market and experts are aren't sure if that's necessarily a good thing.

With total dollar sales volume down almost a billion dollars from last year, Honolulu's housing market is hurting. Buyers aren't sure if the bailout will boost or buckle their chances at securing a home.

"This is a 4-bedroom, 2 bath home, has over 2,000 square feet. You have an elementary school right behind," said Realtor Chelsey Flanagan.

Keith McClintock is looking to upgrade from a condo to a house.

"You can do some entertaining, barbecuing out here," said Flanagan.

He knows what he wants.

"You have to find something that's appealing for yourself," said Home buyer Keith McClintock.

Kobatake Realty has a Kailua home on the market for about $800,000. Across honolulu, the median price for a single-family home has dropped $60,000 from the same time last year.

With prices and interest rates down right now, the economic bailout may make things tough.

"It's going to be interest rate driven, if the interest rates start to inch back up again, it's going to hurt buyers," said Honolulu Board of Realtors Past President Berton Hamamoto.

"There's a harley in the garage, I don't know if they'll throw that in, I can ask," said Flanagan.

Residential sales volume is down 25% from last year, but experts are hopeful Washington's rescue plan will once again open doors to borrowers.

"A lot of the programs that were available are no longer available now so trying to find that right loan for me is also going to be difficult. If I knew where the rates were going to be, I would be rich but I don't," said McClintock.

Hardwood floors to helping Hawaii's housing market rebound with this rescue plan, experts are hopeful restored borrowing will bring back the buyers.

But still, experts say good credit will keep you clear away from the financial crisis.