Maui Real Estate Update

Maui Median Home Prices Only Off 1% !!

2009-02-10T20:31:00.002-10:00

Buyers need to base their decisions on local facts, not generalized national statistics and emotional hysteria. HERE ARE THE FACTS: Home sales on Maui got off to a slow start in January, although the price of single-family homes held steady. The median price of a single-family home in Maui County last month was $558,000, just 1 percent off the median price of $563,225 in January 2008, according to statistics from the Realtors Association of Maui. The January median price was based on just 29 sales, however, a sharp drop from 57 sales during the same month in 2008. That included the sale of one home on Lanai for $340,000. There were no homes sold on Molokai in January. On the other hand, the median price of a condominium in Maui County fell 30 percent in January to $427,500, down from $610,000 in January 2008. The price was based on 48 units sold last month, a sharp drop from 89 units sold in January 2008. That included two units sold on Molokai with a median sale price of $287,500. There were no condo units sold on Lanai last month. Some regions of Maui are suffering and others not therefore contact an expert real estate broker, call Scott Berry 808-264-7016 or e-mail Scott@BerryRealtyGroup.com

Maui Parks Get $41 Million Improvement

2009-02-01T10:20:00.000-10:00

Maui County would get 39 state parks capital improvement projects worth nearly $41 million under a “Recreational Renaissance” initiative backed by Gov. Linda Lingle and the state Department of Land and Natural Resources.According to details released by the governor last week, the breakdown would be 32 projects for Maui island estimated to cost $35.7 million, six for Molokai carrying a $4.5 million price tag, and one for Lanai valued at $770,000.

Maui B&B Operations Approved

2009-01-31T07:37:00.001-10:00

The Maui County Council gave final approval to a bill that revises county laws on permits for bed-and-breakfast operations. The legislation would set a cap on the number of B&Bs allowed in each district, as well as establish a simplified permitting process and impose rules to minimize visitor impacts on neighbors. Next year, the new council will take up a second set of bills to revamp regulations on transient vacation rentals, which are not within the operator's home or property. B&Bs have an owner living on-site, while "vacation rentals" have an off-site manager or owner. The number of B&Bs would be capped at 48 in Hana, 100 in South Maui, 40 in Upcountry, 88 in Paia-Haiku, 36 in Central Maui and 88 in West Maui - a total of 400 for the island.

Maui Honua Kai Closes $100 Million In January

2009-01-31T07:27:00.003-10:00

It is an exciting time at Honua Kai Resort & Spa as the official opening of the Hokulani tower took place on Wednesday, January 28th. Over the past month, Honua Kai Resort & Spa has welcomed many excited and happy homeowners to their Hokulani condominium home. January marked the first $100 million in closed sales for January. Construction is progressing on the second tower, Konea, with the condominiums, pool amenity and spa scheduled for completion ahead of schedule in Spring 2010.

Baccarat Wailea Maui on Hold

2009-01-28T14:46:00.000-10:00

Plans for the luxury Baccarat Wailea Resort & Residences on Maui have been put on hold. Starwood Capital Group announced the project in 2007, and sales reached $300 million in its initial offering. But Starwood said it is putting the project, which was slated to open in 2010, on hold. “We are going to take some time and pause to determine the proper course of action for our properties and evaluate some additional possibilities,” the company said in a written statement. The resort was to be built at the site of the former Renaissance Wailea Beach Resort.

2008 Maui Real Estate Statistics

2009-01-18T06:54:00.004-10:00

For 2008 the numbers show average prices for single-family houses down 10 percent and condo prices up an average of 13 percent. Unlike many places on the Mainland, real estate prices haven't crashed. But the market has sort of gone to sleep. The number of sales is way down from 2007, 21 percent for single-family and 34 percent for condos. The decline is startling when contrasted with the peak in 2005, especially for condos. There were 2,050 condo closings that year. In 2008, only 788. There were 1,187 condo closings in 2007. For single-family sales, the peak in 2005 was 1,316. In 2008, only 907. There were 1,142 sales in 2007. The median price of a single-family house in Maui County was $577,867 in 2008, compared with $630,069 in 2007. The dollar total of residential real estate changing hands in 2008 was just under $1.5 billion, while in 2007 it was more than $2 billion.

The average single-family home price dropped 10 percent last year, to $831,424. Just half of all single-family sales, 448, occurred in Central Maui, where the average price also dropped 10 percent, to $483,792. However, a large fraction of those 448 sales, 103, closed at subsidized prices for legislated affordable housing at Waikapu Gardens, which accounted for 178 closings, or almost one in five during the year.

In Kihei, a much smaller market with only 140 sales last year, average prices fell only 1 percent, to $797,131. In Kula and in Lahaina, single-family prices jumped 9 percent, to $1.1 million in Kula-Ulupalakua-Kanaio and to $1.8 million in Lahaina. This also is an area where a few outlying transactions move the averages. The average condo price was up more than $100,000 to $921,063, but the median price, $549,500, did not move at all. At the median, half sold for more, half for less. That means that the prices of the more expensive condos moved higher in 2008 - or that contracts inked in 2006 were closed in 2008, at a time when market prices were actually falling. The biggest area for condos is Kihei, with 307 transactions. In Kihei, the average price was almost unchanged at $475,416, and the median dropped 7 percent to $395,000.

Some sellers got trapped by using their home equity line resulting in distressed sellers. This is evident in specific pockets of housing on the island. There are a lot more houses in the 400s than a couple of years ago and interest rates are the lowest seen in 25 years. It's a great time to buy and hold. Prices have declined considerably in the past two to three years. Buyers waiting for the 'bottom' may miss unique properties and opportunities as market forces, qualification requirements and rates may fluctuate.

New Funding For Kapalua Bay

2009-01-14T06:31:00.002-10:00

Maui Land & Pineapple Co. and its partners in the Residences at Kapalua Bay have found new lenders to replace Lehman Brothers, which declared bankruptcy in September. Most of the money will come from lenders or investors who participated in the original package, but two German banks will bring $55 million of new money to replace commitments that Lehman cannot fulfill. On Monday, ML&P President Rob Webber said: "It is a good result for the company," because it establishes clearly that the luxury project will finish on time at midyear. How fast units then will sell remains uncertain, although Webber says there was strong interest in the Residences from attendees at the Mercedes-Benz Championship golf tournament over the weekend. Now everything will depend on whether buyers can find credit. In the restructuring, Central Pacific Bank will become the administrative agent for the new loan package. CPB is a $20 million participant, and it funded the first pulse of the construction. Most of the remaining money will be $35 million from Lehman Brothers Holdings Inc.'s estate in bankruptcy, and $55 million in new commitments from two German banks: Deutsche Hypothekenbank and Landesbank Baden-Wurttemberg. Another early participant, Swedbank, will maintain its $20 million share, and Marriott will up its original $17 million investment by another $10 million.
The joint-venture partners and the original banks had advanced a total of $19 million to keep construction going since September. The project, which occupies the site of the former Kapalua Bay Hotel, will have 146 residences, 84 to be sold individually as The Ritz-Carlton Residences, and the remainder as fractions in The Ritz-Carlton Club.

Maui Wind Power Success

2009-01-12T19:14:00.000-10:00

For more than three decades, wind power in Hawaii was no more than a promise. The federal government poured millions into experiments that went nowhere. Powerful utilities in concert with international industrial firms built farms that failed. Not until two small-business owners from Maui, Kent Smith and Hilton Unemori, tried was a successful wind farm built in the state. It was risky business, considering the several previous failures. Kaheawa Wind Power started producing electricity in June 2006 and was an instant success, although it posed a challenge. MECO's system engineers needed to manage fluctuations in power being introduced to the grid and the manufacturers had to replace some major components (under warranty). Today the project generates close to 10 percent of Maui's electricity, and Smith and Unemori's Makani Nui Associates and their partner, First Wind, are expanding the farm's capacity by two-thirds.

Maui B&B Receive Pre-approval

2008-12-06T14:02:00.003-10:00

A bill revising county laws on permits for bed-and-breakfast operations received initial approval by the Maui County Council. The proposed legislation would set a cap on the number of B&Bs allowed in each district. A second set of legislation, proposing regulations on vacation rentals that are not within the operator's home or property, has been referred to the next term of the Maui County Council. "Bed-and-breakfasts" have an owner living on-site, while "vacation rentals" have an off-site manager or owner. The number of B&Bs in each district would be capped at 48 in Hana; 100 in South Maui; 40 Upcountry; 88 in Paia-Haiku,; 36 in Central Maui; and 88 in West Maui - for a total of 400 for the island. Other provisions include: The owner of the B&B must live on the same property but could live in a separate house. B&Bs on Maui and Lanai could have up to six bedrooms, while operators on Molokai could have up to three rooms. B&Bs on agricultural lands larger than 5 acres must show at least $35,000 in farm revenue. But operators on smaller ag lots would only need to show that the lot had existed before Nov. 1 and that a farm plan was in place. B&Bs would have to enforce "house policies," including quiet hours from 9 p.m. to 8 a.m.; no amplified sound that can be heard off the property; and no on-street parking. Permits on Molokai and Lanai would be approved by the island planning commissions. On Maui, the planning director would have authority to approve most permits; certain cases, such as applications that have drawn protests from neighbors, would go to the Maui Planning Commission for approval. An initial B&B permit would be valid for three years; renewals would be valid for five years.

Whole Foods Market Coming To Maui!

2008-11-28T13:38:00.000-10:00

Whole Foods Market began construction on its Maui store. The 26,366-square-foot store at the Maui Mall in Kahului is expected to open in early 2010. The store will feature items from Maui companies such as the Surfing Goat Dairy, Maui Brewing Co., Howard’s Nurseries and Kula Grown Organic Produce, as well as other products from around the islands.

Should you sell or buy?

2008-11-23T12:58:00.000-10:00

How is this downturn in our economy affecting your real estate decisions? Should you sell now to reap the equity you’ve got in your home? Should you buy now to take advantage of the great deals available? The answer for you depends on your long-term plans, your current financial situation, your long-term investment goals and our local market trends.

Nationwide, existing home sales jumped to a 5.18 million annual rate this September, which is a 5.5% increase from August’s 4.91 million annual rate. The National Association of Realtors reports that buyers are taking advantage of lower prices in many markets, especially in the West. For example, Southern California saw sales jump 65% from a year ago—As many as one-third of those sales were from foreclosures.

Mortgage applications also jumped 16.8% at the end of October. Almost half those loans were for homeowners that wanted to pull money from their homes. 46.9 % of those applications were for refinancing. This may reflect the desire of many homeowners to update their homes.

Housing Market Bottom?

2008-09-05T11:41:00.002-10:00

According to a recent Commerce Department report, the US economy shifted into a higher gear in the second quarter of this year. Our gross domestic product (GDP) increased at a 3.3% annual rate. (The GDP measures the value of all goods and services produced within the U.S.) Economists had predicted 1.9% growth in the GDP and were surprised by the additional growth of 2.7%. How does that growth relate to real estate? Existing home sales rose 3.1% in July, the highest level in five months. Lawrence Yun, National Association of Realtors (NAR) Chief Economist, expects home prices in some regions to increase even more in the near future. “Sales have picked up significantly in several Florida and California markets.” NAR President Richard Gaylord attributes this to the recently enacted housing stimulus package and predicts a sustained sales uptrend in the months ahead.

Housing & Economic Recovery Act

2008-07-30T08:06:00.001-10:00

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.For more information, visit http://www.realtor.org/governmentaffairs.

Consumer Hesitancy

2008-06-17T14:43:00.002-10:00

The ongoing theme....consumers are hesitant to buy real estate. There are a lot of buyers with the cash, but are on the fence for fear there may be a significant market correction in pricing. What is interesting is the fact there are a lot of buyers with money. The demand is there, the confidence is not. When these buyers are ready to enter the market, the increased demand will open the doors for the real estate market. To help keep things in perspective, the following is a quote from Lawrence Yun, the chief economist for NAR. "Existing home sales have been trending recently at an annualized pace near 5 million units, about the same as in 1998. Such a performance then was hailed as a milestone but we live in a different world now. A crisis in confidence is what's keeping homes sales from rising. Fortunately, our federal lawmakers have a tool under consideration that will break the vicious cycle of hesitance that grips our markets: a home ownership tax credit for owner-occupying buyers. House and Senate lawmakers are both looking at credits of at least $7,000."

Bad Real Estate News In Perspective

2008-04-27T10:08:00.005-10:00

Richard F. Gaylord, President of the National Association of Realtors, said it best in the January 2008 issue of Realtor Magazine, "Every foreclosure is a tragedy, but when newspapers talk about foreclosure spikes, they ought to provide context. The problem is predominantly with subprime loans, which are held by less than 10 percent of home owners. Most subprime loans will never go into foreclosure, and not all those that do will be foreclosed on. The foreclosure rate on prime loans is only 0.6% In addition to low interest rates, most areas of the country are experiencing employment gains, inflation is under control, and the gross domestic product is growing. " Maui for the most part is a second home destination and purchase. Hawaii lenders scrutinized local loans differently than mainland lenders thereby resulting in lower Hawaiian foreclosures. The Maui real estate economy is different, and it will not be long before the typical buyer figures this out. The Wailea multi-million dollar condos continue to sell on Maui. Do the people who can afford these condos see the "doom and gloom" touted by the media differently? After all, if there were to be downward pressure on the market of 10% or more, those would amount to big loss numbers for the wealthy. These buyers don't believe Maui will fall victim to large price adjustments. It is different on Maui, as it attracts a different buyer over those buyers found in the mainland suburbs.

Snooze You Lose...

2008-04-26T17:26:00.004-10:00

As many buyers continue to sit on "the fence" trying to time the tide of the Maui real estate market, most will end up "missing the boat" in an attempt to try to buy at the bottom of the curve. Real estate is cyclical, and those who try to time the bottom and top always lose. This brings me to interesting news coming out of the financial markets this past week. More money is moving away from treasuries and into corporate notes, bonds and financial stocks. A sign the fear of major financial calamities is fading away. Furthermore, some experts opine the declining dollar may be bottoming out as it is beginning to see a strong improvement against the yen and euro. The Feds justifiably harbor concerns regarding inflation and will not lower interest rates much further, if at all. In fact the consensus on Wall Street is the Feds will soon start raising rates as it continues its balancing act of stimulating the economy with low interest rates, but also trying to control inflation. Canadian buyers trying to take advantage of strong exchange rates better get off "the fence" and act quickly before the exchange rate changes with an improving U.S. dollar. Likewise, interested mainland buyers better get off "the fence" and consider the effects of an inevitable rising interest rate against an erroneous attempt to save money by timing the bottom in the market. If you have been trying to decide when to buy a Maui home or condo, now is the time.

Maui Real Estate Statistics

2008-04-24T06:54:00.004-10:00

The Realtor Association of Maui (RAM) recently released new 2008 statistics. First quarter 2008 Single family home sales in Maui County are down from 341 in 2007 to 228 in 2008. The median single home price for the same period is down from $625,000 to $602,783. The median condominium price in Maui County in the first quarter of this year was up from $552,500 in 2007 to $587,000 in 2008. Much of this was attributed to high end sales in Wailea and not necessarily condos in less affluent sections of Maui. The number of days on market for a condo in March 2005 was 104 days, and at the peak of the real estate boom, to March 2008 was 162 days. For a single family home during the same period was 123 days versus 162 days. What this tells us is Maui is feeling the effects of the mainland market crisis in a slow down, but clearly not at levels being experienced in California, Florida and elsewhere. For all intensive purposes, the sales volume is healthy for an island with 140,000 residents. What obviously drives the Maui market is the wealthy vacation home buyers. What has dropped off were those leveraging their mainland properties to buy a Maui property. Now the market has shifted and we are seeing a flood of Canadian buyers snapping up deals with a strong exchange rate in favor of the Canadians. These buyers are not concerned about any major downward price adjustments. They realize as with any investment, prices will fluctuate to some degree and they are not here to buy and flip. They see it as a buying opportunity and will be the real winners in the short run. If you are a mainland buyer interested in a second home on Maui, now is the time to buy. There is a lot of inventory to choose from thereby offering beautiful properties in beautiful ocean front locations.

Hawaii Real Estate Will Not Melt Down

2008-04-23T21:32:00.002-10:00

According to a March 12, 2008 article in the Pacific Business News, "Hawaii's low rate of foreclosures and its stable mortgage industry suggest the state won't experience a 'real estate meltdown' like on Mainland, according to the latest report from Prudential Locations. Hawaii is somewhat insulated from housing troubles. The report noted the limited supply of land, universal appeal as a place to own a second home, steady influx of military personnel with housing allowances and tight mortgage lending laws have protected Hawaii from the mortgage crisis. 'Currently, Hawaii has the lowest mortgage delinquency and default frequency in the U.S.,' said Bank of Hawaii chief economist Paul Brewbaker. While home sales in Hawaii have been declining since the end of 2004, home values across the Hawaiian Island have remained more stable than mainland counterparts."

Unlicensed Practice of Law In Real Estate

2008-03-10T09:43:00.002-10:00

The Hawaii Supreme Court is considering a proposed rule that real estate sales agents and brokers cannot interpret nor advise buyers and sellers as it relates to real estate contracts as the proposed rule claims this is the unauthorized practice of law. Obviously this could have a significant impact on the role of real estate agents throughout the State of Hawaii. The Hawaii Association of Realtors (HAR) is vigorously opposing this Proposed Rule. If the Proposed Rule becomes law, then Buyers and Sellers will need to retain the advice of legal counsel as it relates to any questions or interpretations of language within the body of the contract. For now, it is business as usual, and I cannot imagine the proposed rule will pass and become law. However, it is comforting for my clients to know I am a licensed real estate agent and attorney.

Maui Is # 3 Hottest Market In U.S. For 2008

2008-02-27T07:23:00.003-10:00

The Maui real estate market isn't anything like the Florida, Las Vegas or California real estate markets. I have been so busy that I have not had time to update this Blog in several weeks. Real Trends, a company called Housing Predictor, has released its annual Hottest 10 Buyers Markets report. They name the top 10 markets where real estate is still appreciating, despite a slowing economy and housing crisis. Two of the top ten are in the State of Hawaii. Honolulu is number 1 and MAUI IS NUMBER 3!! Buyers need to understand Maui is a limited commodity (tropical paradise) that attracts international buyers unlike most of mainland U.S.A. The falling value of the dollar is making Hawaii an attractive buy. The inquiries being experienced by the good agents from international buyers, especially Canada, is overwhelming. 2008 should be an interesting year. If you are sitting on the fence, now is the time to buy.

Buying a Vacation Rental Property On Maui

2008-02-03T10:19:00.000-10:00

Transient Vacation Rental (TVR) is a hot topic in Maui County. If you are considering the purchase of a Maui vacation home, and your goal is to rent it out to other vacationers while you are off island, there is very IMPORTANT information you must know. First, nearly every single family residential home on Maui cannot be rented out nightly as a TVR. As of January 1, 2008, Maui County is now enforcing old laws that require a minimum 6 month rental agreement on all single family homes except for the very few that are in "Hotel Zone" deeded properties such as Maluhia at Wailea. However, there are lots of condominiums zoned for nightly rentals and this is what most mainland consumers are seeking since they offer an easy turn key event with little obligation to maintenance of the property. Therefore when doing your own property search, those condos that do not allow nightly rentals will be less money than condos of equal caliber that permit nightly rentals. South Maui (Wailea, Kihei, Maalaea) and West Maui (Kapalua, Napili, Kahana, Kaanapali, Lahaina) host nearly all the condominiums eligible for nightly rentals in addition to those condos that do not permit nightly rentals. North Shore has very, very little inventory of condos zoned "Hotel". With this in mind, you may want to refer to the "NOTIFICATION SERVICE" on the tool bar of my home page completing all the information in order to help you target exactly what you are looking for in a property on Maui. This will help you focus on what is truely available for your intended purpose.

Tips To Consider When Searching Maui Real Estate

2008-01-28T08:42:00.000-10:00

I have had a number of comments from prospective buyers who are under the assumption the Maui market is, or will suffer, the same depressed market as seen in Florida and California. The most important comments I can contribute is do your homework and be market specific. Search for articles on the Maui real estate market. The bottom of my home page has some helpful links to recent articles as well as the "Market Update". Another common comment is prospective buyers feel prices are coming down drastically and the days a property is on market are much longer. Well, not really. Again, it is important to look at independent statistics. Days on market have only increased by 40 days since mid 2006 when the market was abnormally aggressive. More importantly, these comments are coming from prospective buyers who are looking at the inventory on the MLS (Multiple Listing Service). Buyers see active listings. They do not see the "selling prices", nor do they see the appraisals which incidentally are heavily scrutinized by the lending institutions today. Buyers need not worry about over paying as the banks have drastically changed their policies. The lending practices are entirely different such as to protect the lender, but indirectly protects the borrower from over paying. So when you see prices being reduced, there are a number of factors, but the two most prominent: 1. The seller is not realistic when setting the original asking price. 2. The seller is competing with better inventory in a discriminating buyers market. In conclusion, "Google" articles about Maui real estate, and be wary of making judgements on limited information from the MLS. Of course I always welcome your call if you would like to discuss Maui real estate.

A Perfect Time For Canadians To Invest In Paradise

2008-01-26T07:17:00.000-10:00

Here are some comments coming from the Ontario Canada publication, Business Edge. "A strong loonie makes Maui property up to 35 percent cheaper than a few years ago. Drawn by the soft U.S. green back and numerous buying opportunities, Canadians are digging into their pockets, pulling out their own revitalized loonies and getting into the the Hawaiian real estate market in unprecedented numbers. A land of lush beaches, gleaming sands, fascinating history, marvelous weather and a thriving artistic cultural life, Maui casts a spell of languid, lustrous enchantment. The world is a big place, but there are a limited number of top shelf properties to go around. That's why enduring long-term value and appeal of property in Maui seems assured, particularly when it's able to do it as income-generating rental property. Here's something else to consider. Those in the know insist that Hawaii remains insulated from the economic woes that many analysts are forecasting for the mainland U.S. As recently as December, the New York Times reported there has been no slump in sales of Hawaiian homes or proposed development projects in the Hawaiian Islands. So don't believe everything you hear about slumping U.S. real estate markets."

Maui Real Estate 2007 Statistics

2008-01-22T09:10:00.000-10:00

Unlike many places on the mainland, the Maui real estate market is not crashing. Primarily due to being a unique tropical island destination. ISLAND WIDE, average condominium prices rose 4 percent to $817,000, while average single-family home prices fell 1 percent to $921,000. The number of condo sales was down 5 percent to 1,179, but the number of single family-homes sales was up 5 percent to 1,138. With less than 140,000 residents, the total amount of money moving through the Maui real estate market grew a little, from $1,986,000,000 to $2,010,000,000. Obviously, most of this money is coming from mainland buyers seeking second homes and an improved quality of life. Historically, property has always taken longer to sell on Maui. The market has shown some sign of softening in regard to the days on market are typically 6 months as of December 2007. This is about 40 days more than the average in the middle of 2006. It is important for sellers to understand market conditions. Those new and remodeled properties with ocean views in the typical resort style developments will fair much better than those properties without these features. Buyers are more discerning in what they want with ample inventory thereby a buyers real estate market accompanied by lowering interest rates.

Why Buy Maui Real Estate Now

2008-01-17T21:35:00.000-10:00

I always find it interesting when buyers frantically buy real estate because everyone else is buying as was the case in the early to mid 2000. Supplies were limited, the demand was high, and consequently prices skyrocketed on Maui as well as most places in the country. For the most part, prices on Maui have stabilized with the exception of more moderate appreciation in the high end real estate, namely houses. See my previous blogs for my comments on this part of the market. I am now getting increasing calls from buyers who have been "sidelining" and ready to buy in the softening market. They are carefully selecting from the much larger inventory accompanied by more sellers becoming realistic about the asking prices and terms of the contract. This has been a bit wacky in the last year resulting in reality checks for sellers. There is no doubt in my mind, this is a good time to buy Maui real estate! But not a good time to buy and flip a property. Go to the "Property Search" on my website to peruse a nice selection of properties in what is a buyers market where the demand is not anywhere near the insanity that existed two years ago. The smart buyers realize you can never time the real estate market highs and lows as it can turn on a dime. Now there is an incredible inventory of fine condos and houses due to sellers who tried to time selling at the high end of the market. Currently, there are 1202 condos for sale in West and South Maui and 521 houses in the same region. However, interestingly, there were 1172 condos sold in 2007 and 403 houses. If you are considering owning a piece of Maui paradise, now is the time to start seriously looking at the inventory and start presenting offers that are more favorable to your terms. Don't wait until the media pundits say it is time to get in the market. Then it will be too late and it will become a sellers market again. Of course if you plan to buy and flip the property a year or two down the road, then Maui is not for you. For those who want to invest, money still can be made in construction of new homes but with the right formula and in the right locations. Similarly with remodels of condos and homes. If you have been dreaming of owning a piece of paradise, now is the time. Maui is not suburb America, it is a tropical resort destination with limited housing to meet the future international demands. Please call me if you have any questions regarding the market, strategies and of course the wonderful Maui lifestyle whether it be full time or part time.

Mercedes-Benz Championship

2008-01-07T21:12:00.000-10:00

At the beginning of every new year, top ranking golf pros from around the world find themselves taking on the challenge of the Kapalua Plantation Course known for its treacherous fairways and unpredictable winds. A wonderful way to kick off the new year is to watch the celebrity pro am series followed by the talents of Tiger Woods and his peers. The 2008 Mercedes-Benz Series was taken by Daniel Chopra of Sweden on Sunday. He played bogey free golf for 22 holes to win the 2008 Mercedes-Benz Championship Tournament. This is one of the many annual celebrity events to grace our spectacular island of Maui. The next star studded event that has become a huge hit on Maui is the Wailea Film Festival scheduled for June 11-15th. This is a wonderful family event where we have the opportunity to preview films before the actual release date and doing so under the Maui stars. For more information about this upcoming event, visit the helpful links section under resources on my home page. This is a great opportunity to see hand picked films and often times previewed with actual celebrity cast members. Maui continues to offer so many cultural events to keep us entertained and these are only a sample. Living in Maui truly is a tropical paradise, yet still offering so many fine amenities without becoming too big thereby maintaining it's island charm.

Super Ferry Is Operational

2007-12-26T08:47:00.000-10:00

After numerous delays related to legal battles over the operation of the super ferry in Hawaiian waters, it is now operating between Oahu and Maui. Generally, the legal battles were over the need for environmental impact studies that were never done to determine namely if there would be any danger to migrating Humpback whales. The super ferry will now operate in and out of Maui daily offering inter island travel between Oahu and Maui. Hawaiian residents may now drive their cars on to the ferry offering more freedom to travel interisland. This will open up intrastate travel wherein residents can go shopping and bring items bought back home without the baggage restrictions commonly experienced with the airlines. It will also offer alternative emergencies services to other islands in the event of a natural disaster. Over the next couple of years, travel from Maui to the Big Island will be made available. The super ferry will be an asset to those who want inter island travel without having to board an airplane. It is also believed this will offer another boost to the local real estate market as residents of other islands may be more likely to consider a second home with the convenient services offered by the super ferry.

Moratorium On Water

2007-12-21T08:05:00.001-10:00

Home prices on Maui will certainly be affected by recently mandated restrictions on water meters. Although parts of the island of Maui are one of the wettest places on earth, Maui County bureaucrats have not delegated enough money to draw water from these sources to accommodate the increasing demand. Developers who want to build a subdivision or condominiums will first have to prove they have a long-term source of water. Meaning, the County will no longer deliver water to new projects. Maui County Council passed such a bill on December 7, 2007. Essentially this is a water moratorium that will have a significant impact on growth. Many developers are concerned and the County council hides behind the statement that the developers have been warned for years. Interestingly, the County has been collecting developer fees for years and property values have skyrocketed thereby County's property tax collection has skyrocketed. Where does the money go to plan for inevitable growth and demand for water. Obviously, it is not going to infrastructure. The County has been wrestling with the issue of developers not offering affordable "local" housing due to the rapid appreciation of real estate prices. The insatiable demand for Maui real estate continues and is anticipated to increase on an international level as previously mentioned in this blog. County Council has just accommodated the basic principles of supply and demand by way of slowing development growth through these restrictions. This fact, coupled with increasing demand for Maui real estate, will create the "perfect economic storm" for inflation in the real estate market in the years to come.

Hawaii Home Prices Appreciating

2007-12-19T20:35:00.000-10:00

Hawaii's resort market has seen the average price for vacation homes soar by nearly 24 percent in the last year, even as the number of homes, land and condominium sales declined by 9 percent. The average price of a single family home in a resort-zoned planned community such as Wailea on Maui has more than doubled from nearly $1.4 million in 2004 to more than $3 million in 2007. Most of the slowing in the market has been in properties below $1 million, while the upper echelon is robust. High end sales have the best opportunity for going forward. Starwood Capital Group's Baccarat Wailea resort on Maui sold $300 million opening day with condominiums priced at $2,000 per square foot. Trump International Hotel & Tower in Waikiki set a worlds sales record when it sold $700 million in eight hours. Bottom line is today's buyers are in their 40's and 50's, have children, want at least three bedrooms and have made an astronomical amount of money. Thus, the resort home market in Hawaii will remain strong for a number of reasons. The baby boomers are just beginning to retire which will continue to fuel the growth. Furthermore, the Asian market coming from Japan, Korea and China are just beginning. Lastly, the weakening U.S. dollar is making purchases in Hawaii much more attractive to Canada, Asia and now even Europe.

Hawaii Is An International Market

2007-12-17T19:18:00.000-10:00

While real estate transactions continue to slump around the United States, it's busy in the Hawaii luxury home market. Hawaii is the Monaco of the west, attracting buyers from all over the world. Hawaii has attracted a global interest because of the weakening value of the dollar, namely Canada, Japan and Korea. Over the next decade, expect to see an even greater Asian influence in the Hawaii real estate market. China and South Korea's robust economic growth, combined with changes in some banking restrictions, will make Hawaii more attractive for this new large group of investors. Hawaii is an appealing destination because it is safe and clean with warm turquoise water against coconut palm studded white sandy beaches framed by 10,000 foot mountain back drops. All this beauty within the borders of the United States thereby offering all the amenities this great country has to offer. After one travels to Thailand or Singapore, most are not thinking of retiring there. However, wealthy baby boomers are now in position to buy retirement or vacation homes and Hawaii is a perfect fit for the lifestyles of the internationally rich and famous.