While the Maui real estate market has a way to go before returning to peak levels, there were definite signs of improvement throughout 2009. In early late 2008 and early 2009, the housing market was hit hard by the economic downturn. Average prices fell drastically and total sales tapered significantly, but as the year went by, slow but steady improvement defined the market.
Housing construction in Western states, for example, is up 8.9 percent in January 2010 from the previous month, and although the figure is still low from a year ago, this is an early indication that the market is beginning to pick up again. If you look at the same figure but exclude apartments and condos, there was a 21.7 per cent increase in housing starts from January 2009 to January 2010.
The slower West coast real estate market has had a considerable impact on the Hawaii market as out of state buyers have dropped off. Still, the shift to in-state buyers has lead to improved sales, specifically as a result of signs of financial recovery in the stock market, historically low interest rates, and the new Home Buyers Tax Credit. Buyers are now beginning to see that the current market is a very favorable one.
The condo market in Hawaii has remained calm most likely because buyers are looking to cash in on bargain-priced homes but even this market is predicted to recover in the coming months. As construction picks up and development of stores, restaurants, and other community facilities returns to pre-2008 levels, the condo market will recover.
In the meantime, motivated sellers are offering some of the best deals seen in Hawaii in more than a decade. Most sales are completed at about 90 to 95% of the asking price and when you combine this with low interest rates and lucrative tax credits, first time buyers and retirees are confident that they’re going to get a great deal. Moreover, investors are beginning to return to the market as they know that low prices now will invariably lead to big profits down the road.
In fact, the Hawaiian real estate market has been quite stable compared to other states. California, Arizona, and Florida suffered from major market crashes, but Hawaii has managed to maintain a 10 year average with regards to average price and the number of sales. Buyers who continue to wait for prices to drop further are likely to be disappointed.
Currently, the Smith Team has already completed $2,000,000 in sales in the first 6 weeks of 2010 and we have more than $10,000,000 in sales pending. So while many experts continue to be concerned about the real estate market in Western states, the evidence seems clear that Hawaii is poised for recovery. Still, the market is obviously bolstered by the bargains that are widely available and buyers should not wait too long to take advantage.
Posted in Maui Real Estate, Hawaii Real Estate |
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
