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
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
