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In this Maui real estate market, sellers often make fundamental mistakes when pricing their property for sale. We are going to address just one here. The most common mistake is to "price for negotiation." In other words an owner will say "I want to clear $1.7 million for my property so I'd better list it at $2 million so I have room to negotiate." That kind of thinking can only lead to frustration and stress. Why?
We are pleased to announce the sale of Na Hale O Makena unit B-302. This unfurnished Makena home sold for $1.875 million. It is another example of the effectiveness of Tom and Sean's Leading Edge Marketing System. Is the current market for Maui real estate difficult? Many think so. Our clients have an advantage. For more details, contact us!
While Hawaii has been largely immune from the mortgage market debacle, it has clearly impacted the thinking of mainlanders considering buying Maui real estate. In the NYT Sunday Magazine, Roger Lowenstein writes a good article for the layman to understand how this happened. Below are some key snippets.
There have been several recent events on Maui which will impact Maui real estate. First Honua'ula, which had received County Council approval has had its approvals challenged in court by a local group claiming the Council did not follow the State's "Sunshine" practices in scheduling meetings and allowing for public testimony. While it is too early to determine the timing impact on Honua'ula, this is not good news for the developer. Second, the Maui County Council is hinting that property tax rates for Maui real estate in the 2008-2009 fiscal year will not change. For more details contact us!
The NAR has released data for March and the news is not good.
The national median existing-home price (2) for all housing types was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets…Existing-home sales in the West rose 2.2 percent in March to a level of 940,000 but are 22.3 percent below a year ago. The median price in the West was $285,100, which is 14.7 percent lower than March 2007.
The good news is that national for sale inventory only increased 1% in March. That means nationally we now have 9.9 months of inventory at the current sales pace. So what does this all mean for Maui real estate?
With the demise of ATA and Aloha Airlines, we get asked frequently what we think the impact will be on Maui real estate. What is happening at the moment to airfares etc? This Honolulu Advertiser article summarizes things.
With Aloha Airlines and ATA ending their passenger service, the remaining flights between here and the Mainland are fuller, with fewer discounted seats…
So what does it mean for Maui real estate?
While we hear all the time from buyers looking to try to find bargains in troubled situations and they appear to be playing a major role in the market on the mainland, the story for Maui real estate is something different. According to Trulia, here is some information regarding how much impact foreclosed properties for sale are having on some California markets.
In contrast, two very high end markets, Santa Monica and Newport Beach, the rates are 20% and 14% respectively. How do these percentages compare to Maui?
We are pleased to announce that 3387 Kuaua Place in Maui Meadows, listed for $3.295 million has gone into escrow. This extraordinary piece of Maui real estate boasts Wailea-style construction and breathtaking ocean views.
To learn how the Leading Edge Marketing Plan assisted our clients in overcoming this difficult market and how it can hep you with your Maui real estate, contact us!
David Berson, USA Today’s Economist of the Year, at PMI has released his latest research piece on the national housing market. Here are some key snippets and how they relate to Maui real estate.
Our models indicate that the decline in house prices is only about one-third to one-half over, due primarily to the magnitude of the supply/demand imbalance in the housing market. This assumes that the current neconomic downturn is both short and modest, and that the disarray in financial markets ends soon…The key reason for these national price declines is the worsening of the supply/demand imbalance in the housing market. The average price of a house, as with all goods and services, ultimately depends on demand and supply…
While none of this necessarily applies to Maui real estate specifically, it does impact the mindset of buyers who are considering buying. Let’s find some detailed data now.
Berson projects the percentage likelihood that following markets will see lower housing prices in two years.
The Federal Reserve is posting maps showing where the subprime issues are located. As you look for the impact on Maui real estate the closest you can find find the Honolulu market. It is instructive. Compared to a national average of 3.86%, Honolulu ranks eleventh nationally with only 2.29%. The average price of a home compared to the market's peak is 99% compared to a national average of 92%. The areas facing the biggest problems are Stockton and Riverside California with 8% delinquencies and 20%+ sales price declines. Other areas relatively untouched include markets like Seattle, San FFrancisco, Spokane and San Jose.
2008 Maui Meadows Real Estate Report Now Available!
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