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Please let us know if there is something specific you'd like us to keep you apprised of! Mahalo.
- Tom & Sean Maui Meadows Real Estate's Leading Edge
Dataquick has announced that sales in Southern California jumped dramatically in September:
37 Hoolalei in the Keala Hills subdivision is conveniently located to shopping and beaches. This immaculate three-bedroom, three-bath home features a great room with vaulted ceiling, an enormous master suite, views of Haleakala, a fenced yard, a quiet private neighborhood and an attached 500 square foot ohana for guests or income. Offered at $799,000, this home represents an unusual value. The property is being staged and will be available for showings in the next few days.
Another eventful weekend. The Morgan Stanley Mitsubishi transaction is being renegotiated but is likely to be completed. Were that to not happen, it would really rattle the markets. Germany has announced a $400 billion bailout of its banks. European leaders are considering guaranteeing all interbank lending. Clearly there is now worldwide political will to infuse capital into banks in return for a taxpayer ownership stake. This is MUCH better idea in our view than buying troubled mortgage assets directly.
Since the original 110 page Bailout bill couldn't get approved, Congress added 340 pages of tax cuts, tax breaks, regulatory changes and other assorted unrelated items to create the actual bailout bill. But the portion devoted to the bailout remains the same and is summarized here. Implementation has begun though it will take about a month for Treasury to devise auction rules, hire portfolio managers etc. In other important news, Wells Fargo has offered to purchase Wachovia for 15.4 billion. Wachovia had previously agreed to, with FDIC prompting, be sold to Citigroup for substantially less. It begs the question, if things are so bad, why would Wells Fargo pay so much more? The news on the economy was troubling this week as non-farm payrolls declined 159,000 in September. That's a number that indicates a recession. In fact Goldman Sachs is now predicting that the third quarter will show no economic growth at all and that a recession is likely. Finally, the rates for jumbo mortgages remain elevated and Libor, the rate at which banks lend money overnight to one another remains very high. So what does this all mean for Maui real estate?
So in the last several days there have been the following major developments:
So what do the events of the past week mean for Maui real estate? First, let’s recap the major events:
We are pleased to announce the sale of Royal Mauian unit 115. This two bedroom unit sold for $1.035 million. Yet another example of how well the Leading Edge Marketing System works in difficult markets.
In two astonishing pieces of news, giant insurer AIG will receive an $85 billion loan from the fed in return for an 80% interest…
2008 Maui Meadows Real Estate Report Now Available!
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