That is $60 million or so in Maui oceanfront real estate that sold in May alone!

 

Things have clearly heated up.

 

In April 2010, Maui saw ninety (90) single family home sales. That is almost TWICE the 47 sales of April 2009.

 

The median sale price for those homes was only 5% lower than a year ago.

 

In April 2010, Maui saw one hundred sixteen (116) sales of condominiums. That is FOUR TIMES the twenty nine of April 2009.

 

The median sale price for those was flat to 2009.

 

Good news all around!

1. There is a "trust crisis"-as a result investors prize transparency over high returns.
2. For the moment, simplicity is a key investment criteria-That will likely change over time, but it will take time.
3. Philanthropic giving remains a high priority.
4. Philanthropic giving is becoming more businesslike-Accountability for recipients continues to increase in importance.
5. Philanthropy in China and India is increasing as a wealthy class increases in size.
6.  Austerity really doesn't apply to the superwealthy-They will be less flashy, but still spend the same amount.
7. "Something that feels special" is critical in buying decisions.

Numbers 1,2 and 7 all seem like good news for Maui real estate. What is simpler, more transparent and more special that owning a piece of paradise?

Existing home sales rose 6.8% in March to 5.35 million units. Some key snippets:

NAR chief economist, said it is encouraging to see a broad home sales recovery in nearly every part of the country, with two important underlying trends. “Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” he said…Total housing inventory at the end of March rose 1.5 percent to 3.58 million existing homes available for sale, which represents an 8.0-month supply² at the current sales pace, down from an 8.5-month supply in February. Raw unsold inventory is 1.8 percent below a year ago, and is 21.7 percent below the record of 4.58 million in July 2008.

This is simply VERY encouraging news.

 

While others talk about market difficulties? The Leading Edge Marketing System continues to produce results.

Nationally, the sales of distressed properties has remained between 23% and 32% of all existing home sales for the last fifteen months or so. In some important Maui feeder markets, that percentage has been even higher. Often, mainland buyers bring a mindset with them that reflects their home market. One should be careful of that on Maui.

 

On Maui what distressed activity there has been has been heavily concentrated at the under $300,000 segment. In the resort areas distressed properties are few and in our view in any segment they don't necessarily represent the best values for buyers.

 

If a buyer is seeking an upscale or newer property, they would remain best served by looking beyond merely the distressed universe.

• Single family unit sales increased 58% over a year ago
• Condominium unit sales increased 43% over a year ago

Now this does not necessarily mean prices have bottomed although indications are we may be there. But this sort of overall activity is necessary to price stability and improvement. For sale inventories in all categories are down significantly as well. For buyers this means they will see fewer choices and for the best selection should act soon.

 

• For a purchase of a primary residence, the wealthy prioritize
• Reputation of the area
• Security
• Design
• Size
• Proximity to amenities

 

• But for a secondary/vacation home the list is very different
• View
• Climate
• Reputation
• Design
• Price

Good news for Maui, especially Maui properties with those gorgeous ocean views.

 

Contact us for more information.

 

1. Maui Consistently rated the "Best Island in the World" by travel experts, this Hawaiian beauty underwent a growth spurt during the past decade that some critics bemoaned as excessive. But the southern coast, anchored by the hamlet of Wailea, has weathered it all well. One of the first master-planned resort communities in the nation, it's a balanced blend of understated gated communities, luxury resort hotels, three excellent golf courses, a tennis center and, of course, several crescent sandy beaches. Wailea has 500 single-family homes, and their views are stunning: lush, verdant hills, brilliantly blue ocean and, after the steamy sun showers, rainbows over the horizon.

 

Hear! Hear!