In reality, however, we expect to see rates settle back down a bit but probably not hit the record lows of last month of 5%. A rise in the interest rates might slow the refi boom and take some of the pressure off of lenders, appraisers, and other related services, but this is unlikely to happen until the economy swings back into gear and unemployment falls dramatically.

Whatever happens, it is certainly not going to be dull. Everyday, we receive numerous new inquiries from folks on the mainland wanting to buy vacation homes or condos, second homes, or principal residences. Unfortunately for most of them, it is a dream that they will not be able to realise because the prices on Maui have risen to levels that are no longer affordable. This natural process of elimination is what keeps Maui from becoming another Oahu with 1 million people and mainland traffic problems. Of course, the really sad part about this, is that it makes it difficult for local folks who were born and raised here to survive and prosper. This is nothing new for Maui nor for virtually every upscale resort community.

This is why our featured property for $350,000 is called affordable. On the whole Island of Maui, there are currently only 10 homes with a minimum of 3 bedrooms 2 baths that are priced at $350,000 or less. This is why we continue to feel that the best buys are going to be in new projects such as The Legends at Maui Lani by Schuler Homes. If you are looking for a home to live in (owner occupants only), then there is still time to enter the Lottery for the first release of 10 homes on July 24th (July 22nd is deadline to have your applications and pre-qualification letters sent in). Contact us for all the details about the Lottery as well as price list, site map, floor plans, etc. These 127 homes will be built out over a several year period with the first homes ready in about 12 to 18 months.