Snooze You Lose...

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.