My wife and I are planning a short trip to Maui, Hawaii this coming year. We won a five day and four night trip, and we plan on going during January of 2014 to watch the Whales. It is a good thing we won the trip because Hawaii is now trending toward better days for its economy. That means costs will start rising again, and being seniors on fixed incomes, we are lucky to be able to afford the trip.
In a financial report released at the end of 2012 by a news source on the Big Island of Hawaii, all types of bankruptcies were significantly down, overall, from what they were in 2011. This trend is consistent throughout all the Hawaiian islands. Bankruptcy trends are a traditional indicator of how the economy is doing. They particularly indicate, when the trend is heading downward, that an economy is recovering.
The housing market is another indicator of how an economy is doing. Hawaii, one of the prime places United States citizens want to retire, has suffered through the housing crisis just like any other state in the union. Housing sales are still sluggish, but there are signs the market is beginning to soften as reports dribble in that the home market is slowly percolating upwards.
Homes in Hawaii are like homes anywhere else, it all depends on the location as to the value of the home. For example, the median price for a home on the island of Oahu selling in 2012 was a little over $600,000. On the Big Island of Hawaii, the median price for the sale of a home in February of 2013 was $295,000. In real estate, locations and availability are everything.
Normally, people wanting to buy homes in Hawaii with excellent ocean side views are financially well off. The market for these types of homes do not always indicate how an overall economy is doing as well as those homes the average American can afford. The reason for this is a recession can effect rich people in different ways than a recession can effect the average American.
In the recession of 2007, the rich is recovering from the recession quicker than the average American because the stock market has recovered. The rich are the ones most heavily invested in the stock market. Nevertheless, the recession had a toll on a certain number of the rich who went bankrupt because of the downturn in the economy.
The average American, whose income lies much closer to the poverty line, has only recovered about half of what they lost in the recession because of population growth and inflation. More average Americans than rich Americans were effected by high levels of debt, hard hit occupations like the construction industry, and much of their wealth being tied up in their homes that became underwater in value.
What all this means to the average Americans like my wife and I is that we will pay a little more for our visit to Hawaii. Fortunately for us, the basics of living expenses has already been paid for. The good news for Hawaiians is that there are economic better times coming for Hawaii. Lets hope these times extend to all Americans, even those on the mainland.
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