Unusually, West Maui Land Co. has been looking to offload a number of large lots through auction. This undeveloped land was available to bidders who were looking for land adjacent to the West Maui forest reserve. As property sales throughout Hawaii have been dwindling recently, the West Maui Land Co. had decided to take a somewhat novel approach in an attempt to finalize the sale of at least 5 lots before the end of the year. Five lots, with one in escrow, have already been sold this year and at bargain prices as well.
Last year, the West Maui Land Co. had hoped to get upwards of $1.6 million for these lots but sales have fallen in the $695,000 to $900,000 range representing a considerable savings for interested investors. Despite difficulties comparing year-to-year sales of Maui land, because of variations in sales with regards to numbers and character, it should still be mentioned that there has been a steep decline in interest in Maui real estate since 2006. In fact, since then sales figures have steadily declined from $266 million in 2006 to $190 million in 2007, down to a meager $94 million last year. While sales have improved slightly in 2009, we’re at $106 million through 10 months; the real estate market is considerably weaker since financial markets began to weaken.
Auctions for Maui Land Co. were limited to individuals with cash or instant credit as the opening bids started at $500,000 and sales were to be finalized before December 21st. The auctions had been advertised exclusively in Hawaii, most prominently in local newspapers, and generated a fair amount of interest. Maui Land avoided offshore interest for a couple of reasons. Namely, there were some time restrictions with regards to advertising in internationally circulated publications and the fact that buyers were required to attend with a broker.
Interested parties were involved in the auction of lots ranging from 25 to 50 acres that all exceeded 700 feet in elevation. While the lots are fairly steep, the forest reserve line is about 1,400 feet, some of them are as deep as 2,000 feet. Moreover, roads and utilities were already set up.
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- Dec
- 13
Help for Maui Short Sellers
Have a wonderful week. On November 30, 2009, U.S. Department of the Treasury announced the Home Affordable Foreclosure Alternatives Program (HAFA), which provides financial alternatives to servicers, borrowers, and investors for a closed short sale or a deed-in-lieu of foreclosure (DIL). HAFA encourages foreclosure alternatives to costly and expensive foreclosures.
The HAFA program simplifies and encourages short sale and DIL options by: Offering eligible borrowers viable alternatives to avoid foreclosures.
Providing a standardized process and time frames for handling viable alternatives.
Allowing pre-approved short sale terms before a property is listed.
Preventing servicers from attempting to reduce real estate commissions established in the Listing Agreement as a condition for short sale approval.
Releasing borrowers from future liability for the debt; Providing financial incentives to borrowers, servicers, and investors.
For more information about HAFA, read the Supplemental Directive using the link above or find this and other Making Home Affordable information at HMPadmin.com.
If you are in a situation or know someone that is upside down on their loan, and needs to sell, this is welcome news. We have a lot of experience dealing with Short Sales, so please allow us to help you or your friends.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. The big news on Maui last week was the monster surf going off on the North Shore. Read more about the 50 foot plus waves hitting today at Jaws.
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Although prices have not started rising yet; we have seen a large increase in the number of sales here on Maui which parallels what is happening across the country. Read more.
This is also apparent by looking at the number of Active Listings. This week, there are 886 active listings of homes for sale on Maui. In March of this year, there were 1061 Active Listings, a drop of 17% in less than a year.
In addition, the number of Pending Sales has almost doubled. All in all, this is harbinger of good times ahead, in our opinion. We expect 2010 to continue this positive trend.
Our featured property this week, Hale O’ Ola, is one of the finest homes on Maui, and in one of the best locations. Check out their website, which has lots of great information including a link to some of the scenes that were shot for the reality TV show, America’s Next Top Model. It should be obvious why they selected this home as a backdrop for many of their scenes as well as to house the models while they were shooting on Maui.
Have a wonderful week.
Mahalo Nui Loa,
The Smith Team
P.S. Please ask us about Auto-Notification, so that you never miss out on the opportunity to purchase the property of your dreams.
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- Nov
- 27
Maui Land to Be Auctioned
Are you looking for a large estate sized parcel of land to build your dream home on Maui?
If so, you may wish to consider a land auction coming up soon at Makila Ridge in Launiopoko just outside of Lahaina which is taking place on Friday, December 4th.
This an auction of 5 large agricultural lots ranging from 25 to 50 acres. Minimum bid is $500K. Please call us if you’d like more details.
Would you prefer having 2 acres with a terrific house, full on orchards and gardens, fabulous views, and privacy? Then, be sure to check out our Featured Property listing above located in the nine lot private gated subdivision of Kaimanu Estates adjacent to Wailea. It is a screaming deal!
Have a wonderful week.
Mahalo Nui Loa,
The Smith Team
P.S. Have a very Happy Thanksgiving Holiday. Be safe!
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The economic downturn has had a considerable impact on real estate markets around the country, including Maui. But this doesn’t mean the news is all bad. Indeed the number of short sales and foreclosures in every sector of the market means that there is a large inventory for buyers as well as highly motivated sellers. Many people are somewhat surprised to learn that the market is starting to turn around again but with this combination of inventory and motivated sellers, buyers have been finding great deals around Maui. As buyers’ confidence is starting to return, there has been a significant increase in activity in the Maui real estate markets. For anybody who has been keeping a close eye on real estate in the area will know that there are some unbelievable opportunities to be had.
Meanwhile, president Barrack Obama has recently pushed through an extension to the first time home buyer tax credit which provides this credit to buyers through the end of April 2010. Moreover, homeowners of 5 years or more will also be able to apply for this credit making buying homes even more affordable. Similarly, Maui is offering first time home buyers access to grants and assistance in purchasing their first home, but since this program has limited funds, first time home buyers should apply as soon as possible. Nevertheless, with an increase in short sales and foreclosures as well as tax credits and grants for first time buyers, the market has never been so attractive.
Many of these opportunities are further supported by lowered interest rates. Maui home buyers are therefore being given a once-in-a-lifetime opportunity to purchase the home of their dreams. Realistically, sellers might not have the chance to wait for prices to increase again or for the market to re-stabilize and as there are many options currently available for home buyers, sellers do not have the luxury of holding out for a bidding war. Indeed, home buyers will not likely see such a favorable market for years to come. Low interest rates, grants and tax credits, and motivated buyers make the housing market more affordable than it has been in years. Still, with the inventory of homes available it won’t be long before prices begin creeping up again so buyers should act now.
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The market continues to improve with 91 new escrows opened in the previous 7 days. Digging in to those statistics a little deeper reveals some interesting facts.
New contracts for condos and homes are almost equally split at 45 and 41 respectively, while there were only 4 new vacant lot sales. Of those new escrows, 43 are Short Sales subject to Lender approval, 10 are REO’s, and the balance of 38 are the more conventional type.
When we look at what actually closed in the previous 7 days, we find a much different picture. Out of 31 closed transactions, 7 were short sales and only 1 was an REO.
What conclusions can we draw. I think the most important one is that the number of Short Sales is increasing; however, the percentage that are closing is still relatively low. In other words, if you make an offer on a Short Sale, patience is the name of the game.
Nonetheless, short sales should not be ignored or discounted just because they are more challenging. The banks are finally starting to understand that it is better to do a short sale than foreclose.
Have a wonderful week.
Mahalo Nui Loa,
The Smith Team
P.S. The whales are back. Come and enjoy a beautiful vacation on Maui, and while you are at it, let us show you how far your dollar can go in today’s market.
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As expected and hoped for, the First Time Home Buyer Credit has been extended until April 1, 2010.
Although our temperament has been and still is cautiously optimistic; we are starting to see very positive signs in the Maui real estate market that are leading us to be more bullish about the future.
As a reminder, we have lots of great tools available to help you search the Maui MLS. You can customize your own search, and save it so that you are automatically notified of any new listings matching your criteria. Try it. We know you will like this feature.
Also, in addition to South Maui condos, most West Maui condos now have active links to site maps, virtual tours, comparable sales data, floor plans, etc. This is another great tool that we are happy to make available to all of our subscribers at no charge.
We appreciate your referrals, and look forward to helping you with your next real estate transaction on Maui.
Have a wonderful week.
Mahalo Nui Loa,
The Smith Team
P.S. Are you contemplating buying or selling property outside of Maui? Coldwell Banker is the leading real estate company in the world with the best resources in the industry. Please allow us to refer you to an experienced and knowledgeable professional to help you.
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With interest rates hovering around 5% with zero points, is it any wonder why sales have been improving month after month.
This week’s featured property was once the home of Princess Kapiolani, so it truly is fit for royalty. Of course, you don’t need royal blood, just a couple of million dollars, and this spectacular estate could be yours.
Are you planning a trip to Maui sometime soon? If so, we’d love to hear from you so we can prepare to help you find what you are looking for.
Have a wonderful week.
Mahalo Nui Loa,
The Smith Team
P.S. Many of you have shied away from Short Sales in the past, and rightly so. Things are improving for this asset class, so don’t be afraid to make offers. You might be pleasantly surprised.
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In another devastating blow to the Maui economy, Maui Land & Pineapple Co. (MLP) announced its decision to end production after 97 years of plantation-scale pineapple farming on the island. The trend of pulling out of pineapple farming in Maui is nothing new as major operations like those of Del Monte and Dole relocated operations in the 1980s due to high land and labour costs. MLP, a Kahului-based land, resort, and agricultural holding company, plans to terminate new planting immediately and will cease pineapple harvesting by the end of the year.
Nearly 300 employees are scheduled to be laid-off during this restructuring, news that wasn’t as shocking to staff as expected. Still, while many employees of MLP recognized signs that the company was in financial trouble, many did not expect to lose their jobs so quickly. However, since the company estimates $115 million in losses on its agricultural businesses since 2002, executives point out that they had little choice. They could not continue operations with such staggering losses and despite exhaustive efforts there seemed to be no financially viable options for continuing in the pineapple business.
MLP is engaged in a range of industries other than selling pineapples, including operating golf resorts, vacation rentals, and real estate development, and the current economic climate has hit them hard. A combination of a decline in visitors and slowing real estate markets has negatively impacted operations in such a way that MLP was struggling to climb out of the red. Quarter to quarter losses were sparked, at least in part, by dwindling demand for real estate and required MLP to scaled down their pineapple operations but opportunities to save this portion of their business holdings were extremely limited. Essentially, real estate investment by MLP severely impaired the company as the economy took a sharp dive and the Maui real estate market followed.
Unfortunately the end of MLP in Maui likely will significantly impact the real estate market further. With another 300 citizens forced out of work, rental and sales figures are bound to take another hit. This could therefore lead to even more foreclosures and vacant rental spaces. So while the national economy appears to be on the rise, Maui has faced yet another setback that feeds the vicious cycle of market decline.
Photo Credit: Homies In Heaven
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Checking the stats on Pending Sales, we find that REO’s (Bank Owned Listings) and Short Sales account for approximately 40% of all of new Escrows on Maui. Here is the breakdown.
There are currently 202 Pending Home Sales. Of these, 27 are over $1 Million. In this category, there are no REO’s and only 1 Short Sale. Under $1 Million, there are 42 REO’s and 40 Short Sales.
In the condo market, we see a similar situation. There are 154 Pending Sales of which 8 are over $1 Million with no Short Sales or REO’s. Under $1 Million, there are 13 REO’s and 48 Short Sales in Escrow.
There are still a large number of properties pending foreclosure, so we expect the market to continue to be dominated for at least the next 12 months by REO’s and Short Sales. Nonetheless, we feel that it is a excellent time to take advantage of distressed Sellers and low interest rates.
Have a wonderful week.
Mahalo Nui Loa,
The Smith Team
P.S. Congratulations to all of the Finishers in the 2009 Maui XTERRA Championships held this last Sunday in Wailea and Makena.
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