Over the past few weeks the housing and financial markets have seen numerous important announcements. In no order they include solid August retail sales, limited funding for large LBO's, Alan Greenspan predicting housing prices will decline "significantly," a record set by homebuilder Hovnanian, Bank of America, Citigroup and other Wall Street firms taking major earnings hits due to dislocation in the credit markets, increased foreclosure activity, record low homebuilder confidence, of course the larger than expected Fed rate cut, declining housing starts, terrible reports on sales prices for existing homes, slowing number of home sales and ten months of for sale inventory nationally and a stronger stock market and modestly rebounding credit markets.

So what does this all mean for Maui property owners? Well, on balance, the news isn't great for the psychology of the market. The inventory overhang remains very high, uncertainty about jumbo mortgages persist etc. However, the collapse in the markets which seemed possible only a few weeks ago seems to have been averted. So what should a seller be thinking? Be the best priced property in your class and negotiate hard.