Tips To Consider When Searching Maui Real Estate

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

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

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

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

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

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

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.