Maui Real Estate

Mar: 10

Has there Ever Been a Better Time to Buy?

Right now is a very exciting time in the Maui real estate market. On the heels of a dramatic economic downturn, Maui has entered one of the most obvious buyer’s markets in the history of the island. A number of factors, including government incentives, lower prices, and lower interest rates have helped to re-ignite the market by making new homes or condos more affordable than ever.

Recently, the government has announced that the First-Time Home Buyer Tax Credit will be extended until April 30, 2010, meaning new buyers have access to an $8,000 tax credit. Moreover, the government’s stimulus package provides current home owners with a credit of up to $6,500 on homes purchased between November and April 30, 2010. Combined with increased income limits that gives access to these credits for single buyers earning up to $125,000 and married couples earning up to $225,000, these credits represent a substantial savings for many potential buyers. While the real estate market is relying on customers taking advantage of these savings, there is no question that many buyers are benefiting.

These savings are bringing buyers back into the market and sales figures prove it. Residential sales, condo sales, and land sales are all up in February. In fact, condo sales for February marked a 12-month high which was unexpected to say the least. Most experts agree that these improving figures are associated with tax credits and lower interest rates. At the moment, all the figures point clearly to a buyer’s market. Housing prices are rising and homes are not staying on the market as long as they have been, but it’s still a very affordable time to buy. In general, sales are up and prices are starting to recover but these figures are still low compared to the market before the economic downturn.

So what does this all mean for buyers and sellers? Clearly, the market is starting to recover. Currently, Maui is just beginning to climb out of the worst real estate market in 20 years. Prices are slowly starting to improve but there are a number of short sales and bank-owned properties before the market makes a total recovery. As far as sellers are concerned, you should stay off the market unless you are highly compelled to sell. Sellers who are looking to take advantage of a good deal on a new home should expect to get slightly less for their own home but the savings may warrant it in the long run.

If you need to sell your home, you should be ready for a lot of competition. The condition of your home, pricing, marketing, and flexibility can help you make the sale. Making your home stand out from the rest is as important as realistic pricing but if your asking-price is too much it will be very difficult to sell. Be proactive when selling your home by having your home appraised and inspected in advance. Interested buyers will be impressed that you can provide this information and you’ll stand out in their minds.

Buyers are in a considerably better position, for the moment. Low mortgage rates and all the tax credits are obviously motivating factors to buy but there is also a lot of inventory at the moment an average prices are still down 10 to 20 percent across the island. Especially for first time home buyers, the opportunity to get into the market is not likely to be seen again and it’s also not likely to last long. Most real estate professionals are already seeing improvements in market conditions and over the next year or so we’re likely to see prices increase substantially. Get pre-approved and start looking into the market now.

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