Aloha from Paradise!

 

    As you probably already know, the Feds have once again raised short-term interest rates (now 3 1/2%) for the eleventh straight time.  Long-term, or mortgage rates, travel to the beat of a slightly different drummer, primarily moving with the bond market; when bond prices go down, mortgage rates inch up, and vice-versa.  Since the bond market has been struggling with recent positive job reports and economic news in general, mortgage rates have begun to rise.  Currently, 30-year fixed, 0 point loans are hovering around 6% from a low of about 5.5% earlier in the year.

    However, our sizzling-hot market here in Maui has not been affected at all by the slight increase in rates, nor is it likely to be unless there is a dramatic change.  Appreciation on both condos and single-family homes continues at about 25-30% annually, with no end in sight.  As we roll into our warm end-of-summer months, it's hard to say which is hotter--our weather or our Real estate market!  Here are some recent stats for your review:

For the Month of June 2005 SINGLE FAMILY HOMES   Number of Sales   Median Sales Price County 2005 2004 Change 2005 2004 Change Hawaii 288 286 0.7% $397,800 $281,000 41.6% Kauai 68 78 -12.8% $699,500 $540,400 29.4% Maui 139 88 58.0% $735,000 $516,000 42.4% Oahu 440 434 1.4% $593,300 $481,800 23.1% TOTAL SALES: 935 886 5.5% CONDOMINIUMS   Number of Sales Median Sales Price County 2005 2004 Change 2005 2004 Change Hawaii 99 114 -13.2% $395,000 $289,500 36.4% Kauai 74 51 45.1% $450,000 $389,900 15.4% Maui 171 205 -16.6% $405,000 $295,000 37.3% Oahu 703 682 3.1% $264,000 $210,000 25.7% TOTAL SALES: 1047 1052 -0.5%

Year-to-Date through June 2005 SINGLE FAMILY HOMES   Number of Sales Median Sales Price County 2005 2004 Change 2005 2004 Change Hawaii 1,362 1,311 3.9% $374,500 275,000 36.2% Kauai 345 357 -3.4% $600,000 $465,000 29.0% Maui 666 593 12.3% $670,000 $530,000 26.4% Oahu 2,200 2,183 0.8% $551,100 $439,000 25.5% TOTAL SALES: 4,573 4,444 2.9% CONDOMINIUMS   Number of Sales Median Sales Price County 2005 2004 Change 2005 2004 Change Hawaii 549 545 0.7% $369,000 $260,000 41.9% Kauai 317 287 10.5% $426,000 $375,000 13.6% Maui 981 1100 -10.8% $371,500 $290,000 28.1% Oahu 3,921 3,692 6.2% $245,000 $197,000 24.4% TOTAL SALES: 5768 5624 2.6%

    And, now, here are this month's Best Buys (remember to scroll down and click on the link below to view these fine properties):

 

MLS #312834--a 1BR/1BA condo, short-term rentals allowed, across the street from the beach in a lovely complex with lush tropical landscaping and swimming pool priced at $325,000!

 

MLS #311046--a gorgeous, furnished, ocean-view 2BR/2BA condo at the Palms at Wailea, just reduced from $1,035,000 to $935,000--truly a "best buy"!

 

MLS #312348--a stunning 2BR/3BA 1,795 sq. ft. remodeled condo with sweeping ocean views at Wailea Point, Wailea's most prestigious gated condo community, well-priced ($400,000 lower than the next least expensive in the complex) at $2,800,000!  Don't miss this one!

 

And last but not least--looking to place some 1031 Exchange money?  How about a 6-unit apartment complex in Kihei that can be converted to individual condos, priced at $1,750,000!  Call for details on this one.

 

Until next month,