Have you noticed that our introductions seem to be getting shorter and shorter? The reason is that as the market has improved, we have become so busy, it is a full time job just keeping up with the e-mails, offers, and escrows.
Don’t get us wrong. We are not complaining. In fact, we are delighted by the tremendous increase in e-mail inquiries and new business.
Sometime within the next week, we are hopeful to roll out a new upgraded version of our website that will allow you to search sold comps going back 6 months. We are in Beta testing right now.
It is desire to provide you with the most up to date and complete information possible, so you can make an informed decision on buying and selling real estate on Maui. If there are any specific requests you might have, please let us know.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
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Obviously, the resort real estate market throughout Hawaii has seen better days but some indications are suggesting the worst is over, or at the very least is nearly over. There are still gains to be made but some analysts are reporting that the evidence points to the market hitting bottom in the final quarter of 2009.
For three years from the beginning 2005 to the end of 2007 resort real estate in Honolulu was flying high. Resort residential real estate brought $2.5 billion or more in each of those years while 2008 saw that number drop to $1.7 billion and an even further drop to $1.3 billion in 2009. These real estate woes were experienced country-wide in conjunction with failing financial markets.
However, signs of a turnaround seem clear. While average prices dropped nearly 20 per cent over 2009 resort real estate prices continued to rise and this despite a major drop in the number of sales. However, these figures give conflicting pictures as developers hurried to complete project all over Hawaii and many of these units had been sold in advance for higher prices. In fact, some of these units would have been sold as far back as 2006 when the markets were booming.
As the past 2 years have made their mark on the financial and real estate markets, average prices are starting to be a little more realistic. Some of these properties that were sold aren’t manageable by the buyers anymore so they go back to the developer and it returns on the market as a resale. Even if the units are brand new, they’re selling for less.
In 2009, the average closed price actually dropped compared to the 2008 figure of $1,552,536 to $1,240,831. Typically, the resale market isn’t affected by developer closings. Most of the drop in prices seems to have happened between the middle of 2007 and the middle of 2009 but they’re starting to stabilize. In fact, as these prices have leveled out, sales have increased from around 125 per quarter to nearly 200 in the final quarter of 2009.
In addition, there appear to be a lot more people in the market looking for a great deal. These bargain hunters have money to spend and they may be the motivating factors in market turnaround.
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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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A line of around 400 formed outside the Whole Foods Market which had its grand opening in the Maui Mall on February 24th. Shoppers seemed impressed by the variety, quality, and affordability of the nations leading organic supermarket. Customers raved about the freshness of everything from fruit and vegetables to prepared desserts, cupcakes, tarts, and pies.
Various food samples provided customers with ample opportunity to judge the quality of the goods on offer. One particularly popular item was a strawberry shortcake retailing for $17.99. Asked about the prices, customers admitted that they’d expect to pay nearly the same at other big name supermarkets like Safeway.
Nevertheless, not all the reviews were glowing. Some customers complained that they couldn’t find what they had come looking for, especially when it came to more exotic fare. While some of these items may have sold out quickly, others may not be available. Yet, the variety of fresh produce, meats, seafood, and organic goods was enough to keep most shoppers happy.
Some prices at the Whole Foods Market were even considerably lower. Take Synergy drinks which are often sold between $5.50 and $6.50 per bottle around the island were going for $4.49 at Whole Foods. Some customers were skeptical that prices may have been lowered for the grand opening, to entice customers to make a return visit.
The new store at Kahului is actually the second Whole Foods location in Hawaii. The first store opened in 2008 on Oahu and another store is expected to open in the fall of 2001 in Kailua, Oahu.
The Maui Mall store is at the same location where locals found the Star Market. Whole Foods represents 26,366 square feet of organic shopping and employs around 140 people. What locals will be happy to hear is that of the 205 Hawaiian suppliers, 60 of them are from Maui. Clearly, Whole Foods puts an emphasis on local produce, seafood, and other goods.
The store management must have been happy with their first day considering several hundred waited in line to get in. The support for local farmers and the variety of products available likely attracted the crowds.
To get an idea of the variety, you could find 16 brands of yogurt of different types from organic, rice, sheep milk, and even goat milk yogurt. The more carnivorous of us could find prepared baby back ribs, boneless pork chops, turkey sausage and other organic products. Customers were also greeted with seafood and salad bars and a wide selection of olives and more. Prices also compared to other supermarkets.
There were even a large number of prepared or ready to cook meals including meats, pizza, sandwiches, salads, and desserts. You’d find Mexican, Japanese, and European cuisine alongside a coffee bar with all the fixings. Staff members were helpful and ready to serve.
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