While the Maui real estate market displayed some upward trends in 2010, over all prices remained relatively low. As compared to 2009, the number of closings in 2010 rose significantly, increasing from 693 single-family closings in 2009 to 814 in 2010. Prices, on the other hand, showed a less decisive change, vacillating and remaining relatively low. This means that there are still many great opportunities available for home buyers and investors, particularly when they are smart about the process and, in some cases, have thick skin.
The main reason behind the lack of a significant rise in prices is the continued presence of numerous distressed and foreclosed properties on the market. Such properties force prices down as a whole and also cause many owners of non-distressed real estate to keep their properties off the market until prices rise to a more advantageous level. While short sales take longer than regular sales to close, sometimes involving months of negotiations, they can provide excellent opportunities for investors and potential buyers looking to get their foot on the property ladder.
While the relatively low prices of REO or bank owned properties are themselves attractive, many such properties are fixer-uppers and therefore offer significant potential for increased value. Of course, those who buy and invest in distressed real estate need to be willing to put in some work to bring the property up to its potential and need to be able to withstand the sometimes protracted negotiation process. However, for those who are willing and able to do so, the current investment opportunities on the Maui real estate market are significant.
In other words, this is an excellent time to purchase Maui real estate, particularly for those who are not necessarily looking for properties in tip top condition. While relatively low prices can be found across the island, certain areas offer better deals than others. For example, while West Maui and upscale resorts still display strong prices, average prices in Central Maui fell 14% in 2010 to $438,000 while the median price dropped 9% to $430,000. As a result, by studying all of the available options and by having some flexibility with respect to the sale process and property condition, home buyers and investors can find an array of excellent opportunities on Maui’s current real estate market.
Posted in Hawaii Real Estate, Maui Real Estate | No Comments »
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