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Coronavirus And The Maui Real Estate Market

What is Coronavirus?

The current pandemic we are dealing with across the globe is actually a mutation of the common flu we experience an outbreak of every year. It is believed that the novel Coronavirus known as COVID-19 made a significant jump from animals and started infecting humans on a large scale starting in China.

Common symptoms include fever, tiredness, aches, difficulty breathing, and a severe dry cough. Some symptoms may be more or less serious, and researchers are hard at work examining patterns to determine who is most at risk and why those who exhibit no symptoms still have high levels of the virus in their system. For up to date information on the virus and it’s spread you can take a look at the following websites:

The CDC: For National Information For State Specific Information

How Has Coronavirus Effected Maui?

As you can imagine, tourism has all but ceased on Maui and in the State of Hawaii as a whole. Vacation rental cancellations are in a freefall, and at this point, it is unclear how soon the rental and hotel markets will come back to full capacity. Tourism provides the main source of cash flow for hundreds of businesses on Maui, and business owners are eagerly awaiting any sort of support the US Government is able to provide during this time.

Right now, anyone who can is working from home and maintaining social distance. That includes many professionals in the real estate space who are coming up with creative ways to serve their clients and meet deadlines. The mandatory order which instructs all Maui residents to stay home and work from home came directly from Mayor Victorino’s office this week and is scheduled to be in effect until April, 30th.

How Has Coronavirus Effected The Housing Market?

Obviously the situation on Maui is very fluid, and we will endeavor to keep our clients and community updated on the latest news through the use of our weekly newsletter. Throughout the last couple of weeks, we have seen a major uptick in new condo listings while new vacant land and residential home listings have remained relatively the same.

The long term impact Coronavirus will have on the real estate market will depend entirely on how quickly the virus can be contained and how soon tourism can resume. One of the main benefits we are seeing for buyers is a major decrease in interest rates on mortgages, which may actually encourage more sales. As it stands, real estate is a long term investment, and even though this pandemic is affecting the entire globe, Maui will still be one of the most desirable places in the world to live after the dust settles. The real estate market is expected to bounce back very quickly, but we can’t predict the future. If you have any questions for our team, don’t hesitate to reach out!

How Has Coronavirus Affected Tourism?

As mentioned above, new arrivals to Maui have dramatically decreased. The last statistics which came out at the end of last week stated that tourists arriving on Maui had decreased by 45% and that number is only going to continue to grow. Tourists who do arrive are required to undergo a 2-week self-quarantine to lessen the risk of them passing Coronavirus to their fellow tourists and hotel staff.

If you are considering a trip to Maui because of the huge discounts on airfare we would urge you to reconsider. Most services, tours, and activities catered to tourists are suspended indefinitely and will resume in the months following the virus’s containment.

Looking To The Future

Our team is still actively working every day from home to provide a high level of service to our clients, even those on the mainland. With the use of the internet, we are able to communicate effectively and close real estate transactions without personal contact. We expect this pandemic to resolve quickly, especially if Maui residents take social distancing practices seriously. We, like you, are watching the news carefully and doing our best in this turbulent time to stay positive and healthy.

For updates on Coronavirus as it develops you can follow this page on Maui Now’s website, and you can keep up with us on our weekly newsletter.

Photo by Martin Sanchez on Unsplash