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In this Maui real estate market, sellers often make fundamental mistakes when pricing their property for sale. We are going to address just one here. The most common mistake is to "price for negotiation." In other words an owner will say "I want to clear $1.7 million for my property so I'd better list it at $2 million so I have room to negotiate." That kind of thinking can only lead to frustration and stress. Why?
We are pleased to announce the sale of Na Hale O Makena unit B-302. This unfurnished Makena home sold for $1.875 million. It is another example of the effectiveness of Tom and Sean's Leading Edge Marketing System. Is the current market for Maui real estate difficult? Many think so. Our clients have an advantage. For more details, contact us!
While Hawaii has been largely immune from the mortgage market debacle, it has clearly impacted the thinking of mainlanders considering buying Maui real estate. In the NYT Sunday Magazine, Roger Lowenstein writes a good article for the layman to understand how this happened. Below are some key snippets.
There have been several recent events on Maui which will impact Maui real estate. First Honua'ula, which had received County Council approval has had its approvals challenged in court by a local group claiming the Council did not follow the State's "Sunshine" practices in scheduling meetings and allowing for public testimony. While it is too early to determine the timing impact on Honua'ula, this is not good news for the developer. Second, the Maui County Council is hinting that property tax rates for Maui real estate in the 2008-2009 fiscal year will not change. For more details contact us!
Our friends at Bank of Hawaii were kind enough to invite us to a breakfast with their Chief Economist Paul Brewbaker this morning to discuss his views on the State of Hawaii and Maui's economy. Here are some snippets:
The NAR has released its latest research on the attitudes and characteristics of American vacation home buyers. Here are some key insights:
The NAR has released data for March and the news is not good.
The national median existing-home price (2) for all housing types was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets…Existing-home sales in the West rose 2.2 percent in March to a level of 940,000 but are 22.3 percent below a year ago. The median price in the West was $285,100, which is 14.7 percent lower than March 2007.
The good news is that national for sale inventory only increased 1% in March. That means nationally we now have 9.9 months of inventory at the current sales pace. So what does this all mean for Maui real estate?
With the demise of ATA and Aloha Airlines, we get asked frequently what we think the impact will be on Maui real estate. What is happening at the moment to airfares etc? This Honolulu Advertiser article summarizes things.
With Aloha Airlines and ATA ending their passenger service, the remaining flights between here and the Mainland are fuller, with fewer discounted seats…
So what does it mean for Maui real estate?
Grand Champions continues to see slow levels of activity with two sales and a single unit in escrow in 2008. Unit 138, a two bedroom sold for $745,000 and unit 171, a one-bedroom sold for $655,000. With twenty units for sale, Grand Champions is facing a severe inventory glut at the moment. For details, contact us.
The Federal Reserve is posting maps showing where the subprime issues are located. As you look for the impact on Maui real estate the closest you can find find the Honolulu market. It is instructive. Compared to a national average of 3.86%, Honolulu ranks eleventh nationally with only 2.29%. The average price of a home compared to the market's peak is 99% compared to a national average of 92%. The areas facing the biggest problems are Stockton and Riverside California with 8% delinquencies and 20%+ sales price declines. Other areas relatively untouched include markets like Seattle, San FFrancisco, Spokane and San Jose.
2010 Grand Champions Real Estate Report Now Available!
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