01-20-2009, 12:48 PM
quote:
Originally posted by John S. Rabi on 7/26/06
Just for the record, I still say the overall prices will go up and you can call me on it in 2-3 years.
quote:
Originally posted by John S. Rabi on 7/26/06
The educated look at a tree instead of the forest. The media "bubble scare" started two years ago on the Big Island. However, prices still solidly increased and the number of sales did not drop during the first year. Needless to say, the media got scared and started talking about an even bigger bubble. The number of sales started dropping in October of last year but the median house prices were still up compared to a year ago as recently as in May of this year!
The NAR represents the real estate industry and agents everywhere in the USA and they don't publish regional data.
They expect 50,000 people to move to Puna during the next 10 years. That's a fully developed HPP almost six times! One just need to look at the commercial activity on the East side. I already saw the same thing happening 10 years ago here in Kona.
There always will be negative people who miss the train and will tell the others who also missed the train that the train will crash. However, the train safely make it to the next stop before going further on.
Since then the bubble has proven to more than just a "scare" and the train didn't make it safely to the next stop. If you still can't see that RE agents had a hand in the bubble, then nothing will.
I'm not blaming Mr. Rabi himself though. If I was a RE agent, I would have been thinking the same thing, that prices would keep climbing. That's the nature of bias. I think it was Julius Caesar who said "men will believe in what they want to be true". I know he truly believed in what he said back in 2006.