HOUSING AND LABOR MARKET TRENDS: HAWAII

Community Development Research Federal Reserve Bank of San Francisco

June 2012

National Trends

Composition of distressed sales by geography

12% 13%

23%

12% 15% 9%

17% 10%

17%

6%

10% 15%

13%

14% 14%

21%

16%

12%

13%

11%

35% 26%

18%

24% 20% 18% 14%

17% 5%

16%

0%

20%

40%

60%

Short Sale

Move-In Ready REO

Damaged REO

Proportion of Distressed Property Transactions—April 2012

Perc

ent o

f To

tal T

rans

actio

ns

Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2012

Neighborhood stabilization: concerns over investor purchases of distressed properties

18%

36% 32%

52% 22%

43%

36%

34% 61%

21%

33%

14%

0%

25%

50%

75%

100%

Damaged REO

Move-In Ready REO

Short Sale Non-Distressed

Investor

First-Time Homebuyer

Current Homeowner

Perc

ent

of P

rope

rty T

ype

Who Is Buying Properties?─April 2012

Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2012

Financing for home purchases

31%

10%

78% 19%

53%

3%

19%

13%

4%

5%

7%

26% 17% 15%

0%

25%

50%

75%

100%

Current Homeowners First-Time Homebuyers Investors

All Other Financing

VA

Fannie/Freddie

FHA

Cash

Perc

ent

of B

uyer

-Sid

e Tr

ansa

ctio

ns

Financing for Homebuyers─April 2012

Source: Campbell/Inside Mortgage Finance HousingPulse Monthly Survey of Real Estate Market Conditions April 2012

Hawaii Trends

Unemployment rate in Hawaii falling in 2012

Source: Bureau of Labor Statistics, May 2012

0

2

4

6

8

10

12

2000 2002 2004 2006 2008 2010 2012

Recession

Une

mpl

oym

ent R

ate

(%)

United States

Hawaii

Hawaii’s housing market appears to be stabilizing

Source: Federal Housing Finance Agency (formerly OFHEO)

FHFA

Hou

se P

rice

Inde

x 20

00=

100

90

130

170

210

250

2000 2002 2004 2006 2008 2010 2012

FHFA (formerly OFHEO) House Price Index (2000=100, quarterly)

Hawaii

United States

Honolulu

Number of delinquent mortgages falling slightly but number of loans in foreclosure holding steady

Source: Mortgage Bankers Association, National Delinquency Survey

0

4,000

8,000

12,000

16,000

2005 2006 2007 2008 2009 2010 2011 2012

Num

ber o

f M

ortg

ages

Loans in Foreclosure All Mortgages Past Due

Hawaii’s consumer debt delinquency rate holding steady at 6.5%

0%

4%

8%

12%

2006 2007 2008 2009 2010 2011 2012

Consumer Debt Delinquency Rate

U.S.

Hawaii

Note: Delinquency status of 90+ days past due or worse. Excludes first mortgage. Source: FRBNY Consumer Credit Panel

Vacancy rate in Honolulu down to 2%, rents up to $1330

0%

2%

4%

$1,240

$1,280

$1,320

$1,360

2010 2011 2012

Vacancy Rate

Ask

ing

Rent

Asking Rent and Vacancy Rate in Honolulu Quarterly

Asking Rent Vacancy Rate

Source: Reis, Inc. Asking rent is calculated by first determining the average rent for each unit size, and then calculating a weighted average based on the number of units in each size category.

Maps

Hawaii Data Maps

Areas Affected by Concentrated Foreclosures April 2012

Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations

Source: Lender Processing Services Inc. Applied Analytics & FRBSF Calculations

Hawaii Data Maps

Areas at Risk of Additional Foreclosures April 2012

Conclusions

For More Information: FRBSF Community Development Website

Links to other resources and research on foreclosure trends and mitigation strategies

All publications, presentations available on our website

Conference materials also posted shortly after events

http://www.frbsf.org/community/