Maui Real Estate: The Year the Bubble Didn't Burst

Maui Real Estate: 2007 The Year the Bubble Didn't Burst

This year on Maui has seen it's ups and downs, but one thing is for sure, our bubble didn't burst.


While Maui County like many regions of the country experienced tremendous price declines for Real Estate, unlike many regions that have had major price corrections and are still not selling, Maui is. To date * Maui County has had a 13% increase with 944 homes sold compared to last year's total of 836. Condos experienced a 5% decrease with 1018 Condos sold compared to last year's sales of 1077. Though some areas like Lahaina and Kihei saw reductions Central Maui's new single family home sales bolstered its gains for a 66% increase. Lanai had 16 recorded single family homes for an increase of 45% and Molokai had 3 recorded sales with a decrease down from 12 sold the previous year.

Average Sale Price for Maui County was down only 6% for Single Family Homes from 2006 and Condos edged up 1% over last year.
The Median (1/2 below and 1/2 above) Price for Single Family homes was $625,505 and the Condo Median Price came in at $545,000.
The more populated condo areas of Kihei and Lahaina saw little to no change in the median while Maalaea experienced a 21% decrease.
Many areas of the Mainland are experiencing tremendous loss in price and sales volume in comparison to Maui. I can remember a time when it was more of a sellers market that I would advise that single family homes started around 500K. Now there are several great buys in the 400's. Condos are available starting around 150K. There is still only one Hawaii and I know many of us feel very blessed to live in such a fabulous place.

While many people focused on prices going down the focus for many of us was the Lending Crisis. This was a tightening of lending standards that was long overdue. Adjustable rate mortgages were given to borrowers who in many cases could not afford the payments when the rates went up. To assume as many did that our interest rates would remain so low was risky business. This put many lenders out of business including several in Maui County. Lenders are telling me now that even though our rates are historically low, they are telling their borrowers not to count on the rates remaining so through 2008. Only time will tell as many factors affect mortgage rates, but if you are a qualified borrower it is still a great time to buy. According to Kim Hauisen of Aloha State Home Loans "If prices go down by 2.5% and Rates increase more than 1/4% you will pay more in your monthly mortgage payment so by focusing on one area over the other you may end up paying more in the long run."

So to people who say it isn't a good time to buy I say respectfully that they are not looking at the real picture in Maui County and perhaps are being unduly influenced by Mainland news. Real Estate is a local market and not a national one. By watching our local market and working with a qualified team including an experienced Realtor and Lender you may make a great purchase of a home or condo in 2008. We have seen some reasonable corrections in pricing and better lending practices to make this year a good time to buy. Our bubble definitely hasn't burst.

For further Real Estate Information, Referrals or to search the Maui MLS please visit: http://www.fineislandproperties.com/ or contact me at MauiGina@Gmail.com

I look forward to assisting you in any way I can.

--
Gina Duncan, R (S), ABR , e-Pro

Hawaii ranks 3rd healthiest state

According to a Nov 5th article in Pacific Business News Hawaii is ranked 3rd in the country by a national health study. Vermont and Minnesota were first and second. Hawaii was noted for having more people covered for health insurance and was ranked one of the lowest states for preventable hospitalizations, cardiovascular & cancer deaths.

According to the article Hawaii is up from 4th place last year. The report covers areas of disease, infant mortality, high school graduates and more to determine an overall picture of health for a state. It takes into consideration environment and the work place too.

Some of the best gains are in poverty area for children which decreased from 20.7% in 1990 to 10.5% in 2007. Hawaii has a lower than average death rate from cancer and cardiovascular disease than the national average, and we have an uninsured population of 8.8% compared to the national average of 15.8%.

These statistics bear out what many of us who live in Hawaii have already found. The climate, the less stressful atmosphere (due to the aloha spirit) and the multitude of activities that are available along with the fresh fruits and vegetables combine to make this a happy and healthy place to be.

For more information on Maui and Maui Real Estate please visit my site:
http://www.fineislandproperties.com/ or email me at: MauiGina@Gmail.com

Aloha, Gina

Hawaii a Top choice for new & returning visitors

A new study that was done by the Hawaii Department of Business, Economic Development and Tourism was released.
It shows that 2/3 of U.S. Mainland visitors that came to HI in 2006 gave an excellent rating of their trip.


Of the visitors to Hawaii over 85% who vacationed here last year were likely to recommend it to friends and family. The study showed Maui and Kauai were the most favored island destinations by visitors from Hawaii's largest markets.



Some activities for Maui being noted as a great destination were the Whale Watching, Swimming, Snorkeling, Diving, Surfing & Hiking. Shopping and great restaurants are here as well. Just to note if you have more adventure in your soul there is a company here that will take you ziplining through the trees upcountry. On Maui there is also horsebackriding, helicoptor tours, & exploring jungles and waterfalls too.



Make plans for your winter trip now. The whales are starting to arrive and the airfare is still reasonable. While you are here if you would like to look at Maui Real Estate just contact me and I'd be happy to set up a tour.



Aloha, Gina Duncan, R (S)

808-250-9858
http://www.fineislandproperties.com/
MauiGina@Gmail.com

Transient Vacation Rental Update (TRV) for Maui

Just wanted to update our Real Estate clients who are operating or are thinking of purchasing a Maui home for vacation rental either in addition to it being a primary residence or not being their primary residence.


Since July 3, 2007 when Maui County Planning Dept. Director Jeff Hunt started to enforce vacation rental owners operating without permits a lot of meetings and for and against enforcement articles have been in local news.

Owners are only allowed to honor their guests booked till the end of this year. Owners have also received notices requiring them to discontinue business or face high daily fine rates.

Most owners speaking out say that they were told since the County's process was taking years to grant a permit, and the county encouraged them not to worry about permits, they only worried about paying taxes for their vacation rentals.


The County side seems to be that the two previous administrations were wrong in not taking enforcement seriously and it spurned a growth in non permitted vacation rentals on Maui, with some not paying their share of taxes.


There doesn't seem to be a happy ending for this issue on Maui and it seems that any resolution will take some time. This is very important for anyone purchasing property on Maui and thinking that they will supplement their mortgage by doing vacation rentals. There are very few that are operating now with permits and it is important for buyers to take note.


If you would like other Maui information please follow the link below or email me at:


MauiGina@Gmail.com


http://www.mauirealestateagent.info/Maui_Pics__Information/page_1881504.html




Aloha, Gina Duncan, R (S)

Perfect in Pukalani Maui Hawaii

Pukalani means "Hole in the Heaven" and to some that sums up why they enjoy living Upcountry in Pukalani Maui Hawaii. Unlike Kula which can be cooler in climate and Makawao which sees more precipitation, Pukalani seems "Just Right".
Among the great Upcountry activities you will find in Pukalani a superb Golf Course that is open to the Public. The Pukalani G&CC features tall stately Norfolk Pines gracing the greens and ocean and mountain vistas abound.
At the town center you will find a swimming pool, grocery store, restaurants, post office, banks and more. Puklani even claims a Starbucks and McDonalds. Not bad for a town that still retains the small town atmosphere many on Maui crave.

Our Best of's for Pukalani include:

Best Restaurant (Lunch): Lunch at Subway or Bento from Pukalani Superette. There's always someone there you know.
Best Restaurant (Dinner): Serpico's Italian (Their Pizza and Pasta are Delicious)
Best Restaurant: (Breakfast) Pukalani Golf &CC (Welcome Back)
Best TO GO & CATERING: John Paul Fine Foods (Hurry Back)
Best Park: Pukalani Swimming Pool/Tennis Court & Grass Field
Best Scenary: Pukalani Golf Course (the Bicoastal Views are Beautiful)
Best Pastries: Foodland
Best Coffee Spot: Starbucks
Best Activity: Golf at the Pukalani G&CC
Best Store: Omachya (Japanese Store with things that will delight all ages)










Nestled at the far end of Pukalani along a large/deep gulch, and surrounde d on the other 3 sides by Kamehameha schools property, pineapple fields and green golf course fairways is the charming neighborhood of Kulamalu. This 60 plus home deed restricted neighborhood features custom built homes that were built from approx 2003 to 2007.
Our listing in Kulamalu was built in 2003 and features 2300sf, 4 bedrooms, 3.5baths, granite counters, new carpeting in all bedrooms, and tile throughout the main areas of the home. This home is situated back against the Kamehameha property with the above spectacular mountain view and the lot size is over 10,000sf and has a dream kids playset. Some of the best features of this home are the Master Suite (bedroom area alone is 24.5x13.5) and the two lanais that offer gorgeous Ocean and Haleakala views. Once you visit this special place you will want to call it your home. Listed at $838,000. Please see our listings on our home page for further details at http://www.fineislandproperties.com/









Aloha, Gina Duncan, R (S)
808-250-9858

What's Going On with Banks, Lenders & Home Loans on Maui??

What is Going on with the Banks, Lenders & Home Loans on Maui??

This week Fine Island Properties is interviewing our Affliate Aloha State Home Loans to get some answers regarding the recent mortgage meltdown and what it means for our buyers and sellers.
Kim Haueisen of Aloha State Home Loans is answering our questions and if you have additional questions please contact Kim directly at 808-298-7092 or email her at Kim@FocusMaui.com
What does Subprime Meltdown mean and how did this come about?
Many Subprime and Adjustible home loan rates have moved dramatically higher, due to the Federal Reserve Boards recent rate hike cycle. So as these rates are adjusting higher (and homeowners payments right along with it) the homeowners are finding that they are unable to keep up with the dramatic increase in payment. In the past homeowners could put their home on the market, realize enough profit to cover any prepayment penalities associated with their home loan and literally move on. But the soft real estate market isn't making this quite so easy any more and houses aren't selling as quickly and the home appreciation rates enjoyed in the past have moderated.
How does this impact our Buyers and Sellers?
In the short term, home loan rates are benefiting, as the stock market is taking a beating, causing money to flow into Bonds and Mortgage Backed Securities, which benefits the buyer who needs a lower rate and opens up a bigger pool of buyers for a seller. But the long term picture may spell higher interest rates ahead, as lenders have to absorb the cost of the loans that went belly-up, combined with the cost of increased compliance and accountability standards. Now more than ever it is clear that buyers and seller need to work with a Real Estate Professional and Loan Specialist that can ensure that their dream of homeownership is viable and that the transaction doesn't fall apart.
Because of recent events, credit and lending standards are tightening. What should our clients know and can they do anything to help them prepare for the loan process?
As you probably know, I regularly invest in my business to make sure I have the best tools and systems available to serve your client's needs. One of the major steps I've taken is earning the Certified Mortgage Planning Specialist (CMPS) designation. As a CMPS, I have gone through rigorous training and testing in order to hone my skills in helping your clients utilize their mortgage as a tool to build wealth. Additionally, Aloha State Home Loans can analyze your client's credit and give them a detailed report of the actions that can be taken to increase your client's credit score. ALL AT NO CHARGE. I've already made the investment in this service to serve our clients because I believe it is important that they receive a level of service unlike most would expect. We build relationships for the long run, not just to provide a "transaction" one time service. So although some of your clients may not have a need for a home loan at this time, I still would welcome them to take advantage of the investment I've made and I'll sit down with them and go over personalized instructions for helping them to improve their credit score-even if it's already great!
Thank you to Kim from Aloha State Home Loans for your insight and the assistance you provide our clients and we would welcome the opportunity to have you back to our Blog again soon.

Please visit our website for more information and to search the Maui MLS at:

http://www.fineislandproperties.com/

Aloha, Gina Duncan, R (S)