Defaults on Hawaii real estate could be coming

Last year, before the subprime lending bubble burst so violently, plenty of Hawaii real estate was bought with subprime loans. Now, 1,600 of those loans in the Hawaii subprime market could end up in foreclosure. Indeed, as the Honolulu Advertiser reports, defaults on Hawaii real estate in the subprime market are already higher than the average on the Mainland:

And what does this mean if you want to buy a Hawaii home? Well, it could mean downward pressure on the real estate market. With supply increasing, and demand down due to tighter lending standards, it could mean lower prices.

For more on the Hawaii real estate market, contact John Riggins.

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