We are finally seeing some reasonable economic data:

•  New home sales rose 4.7% in February to a 337,000 unit annual rate, rebounding from the all-time low hit in January… Around 5-6 months of supply would be consistent with a balanced market; 

•  Meanwhile, existing home sales gained 5.1% in February to 4.72 million after hitting a 12-year low, but inventories were unchanged, remaining badly elevated at 9.7 months. 

• Similarly, durable goods orders at first glance looked much better than expected,Against the expected bigger negatives from investment and inventories, the consumption picture at least looks a bit better. 

• Real consumer spending fell 0.2% in February, as expected, but January was revised up to +0.7% from +0..4%.  As a result, we now see 1Q consumption rising 1.3% instead of +0.9%.  While the swing into positive territory would be a positive development, the upside we’re forecasting would mark a meager rebound

Don't get us wrong, none of this is good news, but it is better than things have been recently. While there is no direct impact on Maui Real Estate directly, over time an economic improvement will help us.