Aloha, and   !

 

After much conjecture, many opinions, endless statistics and some serious soul searching, I think I'm ready to offer my thoughts on the "State of the Real Estate Market" in Maui.  As I have mentioned in previous months' Newsletters, our inventory has crept up considerably, and as a natural outflow of higher inventory, we are starting to see some price reductions.  Does this mean that prices are going down and the "bubble" has finally burst?  I think not.  We need to take a close look at what has been happening here for the past 4-5 years to get a better understanding of what's going on now.

 

As you probably know, we've been enjoying a 25-30% appreciation every year for the past several years across virtually every sector of the market; condos, homes, vacant land.  Many speculators have been able to take advantage of our rampant price increases by purchasing a property--say a condo--in a particular complex, then immediately re-listing for as much as $200,000 more than they had just paid for it.  While it could often take 6 months or more for the market to move to that new price point (thus a relatively long selling cycle for what has been a "hot" market), it eventually would, and the cycle would start all over again.  It appears that this strategy may no longer be working; thus, we are seeing price reductions on properties where sellers were trying to take that next huge chunk of appreciation, and the market is not supporting it.  So, in effect, prices are not going "down"; they are merely settling back to a "most recent sale" reality.  I think this is healthy for both buyers and sellers; buyers have more choices and sellers will need to have a little longer "hold" mentality to reap a sizable gain.  It's all good; we're still healthy here in Maui!

 

This month's Featured Properties include:

 

MLS #315997-- The least expensive 2BR vacation rental property in Kihei, this groundfloor garden view unit features a convenient central location and good rental history, priced at $449,000!

 

MLS #313184-- The least expensive 2BR vacation rental property in Wailea, this ground floor unit at thew popular Grand Champions complex offers a special lock-off feature which can allow an owner to use one side while renting the other side for income.  This large unit, over 1,100 sq. ft., is well priced at $845,000!

 

MLS #314862--I mentioned this comfy 3BR/2BA home with 1BR/1BA ohana for added rental income in a previous newsletter.  This home features expansive ocean views and an open floor plan, and went into escrow right away.  Unfortunately, the buyer's have been called back to the mainland, but this gives you a chance to own this fine home for $969,000!

 

Looking for direct oceanfront (on the beach!) real estate?  Call me for information on several Makena Beach properties currently available starting at about $8,000,000!

 

Best regards,

 

Michael Blaz

(808) 283-9093