Gary's Blog

Maui LEADS the state with visitor arrivals, up 14.2% in March from a year ago. Expenditures were up by 12.7% for the same month, the largest increase since April 2006. Maui also had the most visitor per day spending in March, a 9.4% increase from a year ago.

This is great news for real estate owners on Maui.

Consumer Confidence is growing nationwide, which helps us here in the Maui real estate industry. The best consumer confidence reading since '08's financial meltdown occurred last month. The Consumer Confidence Index rose in April to 57.9, according to the Conference Board, a private research group based in New York. That is up from 52.3 in March.

Home sales are up nationwide, the strongest month since last July and the biggest monthly increase in 47 years! These statistics are likely to tell people "get out there and buy now, the market won't ever be better than it is now, if you like to buy low".

The International Monetary Fund see 4.2% global growth for 2010. Again, if you own real estate in Maui, and don't need to sell, take it off the market! Maui real estate is such a bargain right now, only serious buyers need apply. This is what those with cash have been waiting for. And we are seeing homes and condos sell like we haven't seen for years.

Maui just sold the most expensive single family home on Maui in the history of the world! Jennifer Anniston just paid $19.9 million for a gorgeous home in Makena, closed last week.

More national news that is encouraging, unemployment fell in 69% of the largest metro areas last month. Employers added 162,000 obs in March, the government said earlier this month, the most significant gain in three years.

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

It just closed, the $20 million estate on the beach in Makena! Rumor has it that Jennifer Aston is the buyer, while she and Adam Sandler are filming at the Grand Wailea.

I'm sure you all know about the Barron's on-line article for the ten best places for a second home on the planet earth- Wailea is listed as #1!

Economic statistics are looking good, must be why the smart money is back to Maui real estate. For example, the Index of Leading Economic Indicators just rose in March by 1.4%, about 25% higher than economists predicted. That is on the heals of a 0.6% and 0.4% rise in February and January, respectively. Retail spending is up, businesses are boosting stockpiles, and consumer optimism is up, all good for the future of our Maui real estate market. Not necessarily good for interest rates, though. Now is the time to get that great rate!

It sure is nice to see Hawaii's unemployment rate among the lowest in the country, at just 6.9%. North Dakota is the lowest at 4.1%, and Michigan is the highest, at 14.1%. Hawaii is tied in eighth place for the lowest unemployment rate in the nation.

And what better time to come to Maui! The weather is gorgeous this time of year, tourism is down because the snowbirds have gone home, and the families are waiting for summer vacation. So you can pick up a wonderful piece of Maui real estate for a fraction of the value just a few years ago.

For example, I am liking a unit in Wailea that sold for $1,695,000 in 12/06, offered now for 1250k. Very motivated seller in the Wailea Palms, gorgeous remodel, and beautiful ocean views.

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Statistics tell the whole story! Maui single family home sales are up 42% in the first quarter of this year. Average sales prices are down 16%. It looks like the buyers are saying "OK, now this makes sense!"

Frankly, the way I see it, it is downright irresponsible to be considering Maui real estate in your portfolio, and not take advantage of this market.

Maui condo sales were also up a robust 12%, but prices were down further than homes, 22%.

March saw the second consecutive monthly increase in home sales on Maui, and condo sales were at a 46-month high.

The question for everyone is not if prices will go up from here, but how quickly is the question. Six months ago, the question was if they will go up or down, and six months before that, the question was how much further will they go.

It feels good to be in a market where any answer to the big question is acceptable!

Other statistics that are encouraging: Nationally home sales are up, after a 30% average drop in prices nationwide. Economic growth is predicted at 3% for 2010, and increasing from here. The economy has been growing since the summer of '09. Maui visitor spending is on the increase also, up 25% so far this year compared to a year ago. And airline seats to Maui are up 14%, meaning lower cost to get here.

Labels: Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Sales in stores open at least a year rose 9% in March, based on an index of 31 retailers compiled by the International Council of Shopping Centers. This is the best showing we have seen since March of 1999.

Maui real estate buyers, pay attention! Prices are on the rise.

Ho'olei at Wailea is seeing some good absorption, and the new listings coming on are all coming on over $2.5 million. The lowest priced units are now running $1.8 million, vs. $1.6 million last year.

Kihei Villages, on the other end of the spectrum, is seeing some great absorption. We are down to five active listings, after 26 closed sales in the past year! That is less than three months' inventory, sure to cause prices to rise. Plus there are ten units in escrow as I type this!

Welcome back to Maui, real estate buyers!!

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Maui is looking forward to the new jobs we should see soon, as the economic statistics show. More employment means higher demand for rental condos and real estate sales. We are already seeing inventory get gobbled up at double last year's pace here on Maui.

Nationally, the index measuring the number of people who agreed to buy previously occupied homes rose a huge 8.2% in February.

The nation's service sector is growing quickly, with the Institute for Supply Management's service index rising to 55.4 in March, from 53 in February. Anything above 50 signals expansion. Considering the service sector accounts for about 80% of our nation's economy, that is great news! Also, factories are producing more, and the economy added 162,000 jobs last month. That number is the biggest in almost three years. 123,000 of those new jobs were in the private sector, and that was also the highest such reading since May of 2007.

Here on Maui, our economy was still booming in May of 2007. To have statistics equal to those good-ole days is quite encouraging!

What really blows my mind is that the Maui News actually published the good news! Ordinarily, even with good news, the media like to put the negative spin on things. Hat's off to you, Maui News!

With all this positive news, low interest rates, strong foreign currencies in China, Canada, and Europe, we can expect a great summer for Maui real estate!

I just did a broker's price opinion in Pukalani this week for a bank. I was happy to see that we have closed more than twice as many sales in Pukalani in the past 12 months as we have current Active listings. My experience indicates that if our inventory is less than a six-months' supply, we are experiencing a strong, stable real estate market. If that inventory shrinks up any more, we can watch prices rise as demand outpaces supply.

Buyers' - don't wait until after prices rise again. Get in now, you'll be glad you did!

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

With a $27.5 million Makena home in escrow, FOUR Wailea Kialoa, a Papali, FIVE Maui Meadows homes in escrow, a Wailea Pualani, four Ho'olei units in escrow, two Kai Malu homes, a Kanani Wailea in escrow (a subdivision which has resisted buyers for almost a year!), FIVE Palms condos in escrow, two Wailea Fairway Villas, two Wailea Point units, four Wailea Ekahi, three Wailea Ekolu, a Grand Champions (multiple offers on this one, priced 60k over the last sale!), and THIRTY NINE CLOSED escrows already in Wailea, Makena, and Maui Meadows, things are looking up for South Maui real estate owners and agents.

It looks like the pent-up demand is finally releasing the breaks!

Lots of statistics this week give consumers confidence above an beyond normal. Maui visitor counts are up for the second month in a row, leading the state in growth. Over 7% increase from a year ago. For visitors who chose to visit only one island, Maui island visitor count grew by 12.4%!

Nationally, consumer spending is growing, up 0.3% in February, marking the fifth straight monthly gain. And factory orders rose again in February, the 10th increase out of the past 11 months. Meanwhile, the Federal Reserve holds it's Federal Funds rate at zero to 0.25%, until they start seeing a stronger recovery in employment.

Thank you God, for allowing us to survive that last one. With inventory still offering a good selection, sellers still offering fantastic discounts, foreign currencies at all-time highs, and interest rates at all time lows, we are looking forward to a good 2010, and an even better 2011!

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, South Maui, vacation property in Maui, wailea real estate

The University of Hawaii Economic Research Organization (UHERO) is predicting recovery this year. Hawaii economic growth was negative 1.3% in 2008, negative 0.4% in 2009, and expected to be negative 0.2% for 2010.

Hawaii visitor growth has been encouraging in recent months.

Nationally, the GDP growth was just announced yesterday to be 5.6% in the October-to-December quarter, and Hawaii's growth typically follows the national figures by about six months. So we should be seeing that growth occurring beginning this quarter or next. The national figures are the best we have seen in six years!

Unemployment in the state of Hawaii has been considerably lower than nationally. The national rate just dropped again to its lowest level since September 2008, when the financial crisis intensified. Initial jobless claims dropped by over 30,000 last month, a bigger drop than analysts' estimates. Hawaii state unemployment is predicted to peak out at 6.9%, vs. the 9.7% nationally.

Another positive sign for Maui real estate values is the increased air traffic to Kahului from the mainland. I have reported multiple airlines' increased flights to Kahului from Chicago, Alaska, Orange County, LAX, and others. Alaska airlines just landed their first new flight from Sacramento to Kahului yesterday, just further evidence that the airlines are predicting the good 'ole days of tourism coming to Maui.

Buy the real estate now at the lowest prices we have seen in almost a decade, and watch your values and income rise as the economy does. And with some of the lowest interest rates we have seen in forever, and the strongest foreign currencies we have seen in decades, 2010 bodes to be a great year for Maui real estate investors!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, vacation property in Maui, wailea real estate

The Federal Reserve said Thursday that net worth rose 1.3% in the fourth quarter to $54.2 trillion. That marked the third straight quarter of gains. Net worth rose a more robust 4.5% in the second quarter of '09, and 5.5% in the third quarter.

Growth in stock portfolios delivered the biggest lift to net worth. Higher home prices helped a bit.

Just another sign. What we find in Maui real estate is that when prospective buyers feel wealthier, they come here to buy. It's just a matter of time!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Great news for Maui real estate owners! Maui's occupancy rate jumped to 67.5% in January compared to 59.8% one year ago. There was a smaller but still encouraging jump for the state as a whole, as well- from 63.1% in 1/09 to 66.5% in 1/10.

It is not easy to ignore all these positive statistics.

Even the naysayers are saying yay. Yesterday's Maui News actually published an article giving the reasons why it appears the resort real estate market has hit bottom. Check it out at www.mauinews.com for 3/10/10, it is on page 3.

In another article today, Maui News reports that foreclosures are up from one year ago, although the rate of increase is the smallest annual increase we have seen in four years. And the foreclosure rate in February was actually down from the prior month by 2%.

Call me now for your piece of Maui real estate- while the getting is good!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, vacation property in Maui, wailea real estate

The employment data that was released Friday had a cut of only 36,000 jobs, fewer than predicted. Many economists are saying the jobless rate may have peaked (again 9.7% last month), and predict the employment report for March will kick off a string of monthly job gains. Wall Street responded positively with a 122 point (1.2%) surge in the DJIA on Friday.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Continental said Friday that it would add a daily red-eye from Maui to Los Angeles, and a return afternoon flight from L.A. It will also begin a four-times-a-week afternoon flight from Maui to Orange County, CA, and a return flight leaving in the late afternoon.

Allegiant announced it will soon purchase two Boeing 757s to launch service to Hawaii later this year and will buy four more in late 2010 and next year. The airline now serves California, Oregon, Washington, Arizona, and Las Vegas.

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

A very strong report for the U.S. economy. Retail sales just experienced the largest gains since 2007, before the recession began. The 3.7% February rise surprised economists who expected closer to a 2% gain.

What a time to buy Maui real estate! Sellers are anxious to sell, and so many signs are pointing toward good times ahead!!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

While recent recessions in the past have been revived by consumer spending, so far the strength this time actually comes from the manufacturing sector. For example, businesses boosted spending on equipment and software in the most recent quarter by 18.2%. And foreigners snapped up U.S. goods, which propelled U.S. exports by 22.4%, the biggest increase in 13 years.

Economists are predicting continued growth in this quarter, of about 3%. That compares to a phenomenal 5.7% growth rate in the 4th quarter of '09.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Tourism numbers are all up! Visitor count for January is up 2.4%. Visitor spending is up 5.7%. Visitor spending per person per day is up 3.2%. Further evidence that America is feeling better this year than last. And we all know that consumer sentiment drives consumer spending. And consumer spending drives 70% of the U.S. economy.

Airlines are increasing their numbers of seats coming to the State this spring. Continental and Alaska Airlines are planning a 5.1% increase in the number of seats from California. Air seats from the eastern U.S. will be increasing by 6.3%, and international flights are forecast to rise 6.7%

This is already helping Coldwell Banker Island Properties sales. We have been putting about two new homes in escrow every day for about the past six months. This month, the numbers are approaching three new escrows per day.

What a time to buy Maui real estate! If you are a buyer, what a great time, as the sellers are still very motivated to bargain. They will soon realize, however, that the worst is behind us.

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Now for seven successive months we have watched home prices rise across America. The Standard and Poor's/Case-Shiller 20-city home price index released Tuesday rose 0.3% from November to December. Only five of the 20 cities in the index showed declines from November to December. Los Angeles and Phoenix posted the largest increases. In Denver, prices rose for the 10th month in a row while San Francisco saw its eight monthly-gain. More listings are receiving multiple offers above the asking price.

People are realizing the bottom is creeping away.

When to buy Maui real estate? Looks like the time is now!

In other news, the state Department of Business Economic Development and Tourism says it continues to expect a gradual recovery in Hawaii's economy beginning this year. Total visitor days and expenditures are projected to increase this year by 2.1% and 2.3%, respectively.

Labels: Makena Real Estate, maui real estate, maui realtor, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

To see the full article, cut and paste this link into your browser:

http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/201002090200/BUSINESS/2090315

In other news, today's Maui News actually had a positive article in the Opinion section! Talking about bustling tourism in both Lahaina and Wailea area.

The Fed announced yesterday that the key Federal Funds rate is expected to continue to stay at a record low, especially in light of the 0.1% DROP in the CPI last month. That is the first time the core CPI rate has dropped since 1982. Fueled by housing and auto prices.

Also in today's paper was an article entitled "Mortgage Crisis May be Slowing", with the percentage of homeowners one month late on their mortgage dropping to 3.6% from 3.8% in the previous quarter. Hawaii still rates among the lowest percentage of homeowners with a missed payment, or in foreclosure, in the nation.

Another area I like to watch as an indicator of the tourism trend is the airlines. United Airlines just announced they are adding nonstop service from Chicago to Maui. In addition, a number of daily direct flights between Maui and Southern California will begin this spring.

Labels: Hawaii real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Hooray! December occupancy in vacation rentals is up to 62.3%, vs. 57.4% 12 months earlier. That's not only good for Maui real estate owners, but also good for all the other businesses that attract tourists, such as restaurants, golf courses, tours, etc. That is good for all of us here on Maui!

In other good news, Japan's GDP is up at a 4.6% rate in the fourth quarter of '09, about 25% better than economists expected.

More good news was announced just today. A stronger-than-expected uptick in housing starts (591,000) confirms that the housing market has bottomed out after its steepest slide since the Great Depression. Still a far cry from the 2 million units per year from four years ago, it is a move in the right direction.

Other recent economic data also point to an economy bouncing along the bottom. A report today showed that industrial production, as measured by the Federal Reserve, continued to expand in January.

Labels: Hawaii real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

January's unemployment rate is down to 9.7% from 10%, that is good news! It was the first drop in seven months. The Labor Department survey found that 541,000 more Americans had jobs in January compared to December.
- The number of part time workers who want full-time work but cannot find it fell by nearly 1 million.
- The average workweek grew to 33.3 hours from 33.2.
- Temporary-help services added 52,000 jobs, the fourth monthly gain
- The manufacturing sector added jobs for the first time since January 2007.
- Retailers added 42,100 jobs, the most since November 2007, before the recession began.

In a separate report, productivity rose by a seasonally adjusted 6.2% in the fourth quarter. That was the third straight quarter of sharp gains.

CNN, eat your heart out! They hate good news!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

For the sixth straight month, The Institute for Supply Management said its manufacturing index rose. January read 58.4, vs 54.9 in December. A reading above 50 indicates growth.

New orders, a sign of future growth, jumped in January to its highest level since 2004. So did current production. Order backlogs grew, along with prices companies paid.

The 7 million lost jobs will take some time to get replenished, but that time will come. In the meantime, for those out there with cash in the pocket, now is the time to consider Maui real estate!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Check this out, the economy boomed in the fourth quarter of 2009, growing at the fastest pace in more than six years. The GDP expanded at an annual rate of 5.7% in the fourth quarter, the second straight quarter of growth.

Many analysts predict slower, but positive growth for the upcoming year. They expect a rate closer to 2.5 to 3% in the current quarter, and 2.5% for the year.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, property in Maui, South Kihei, vacation property in Maui, wailea real estate

Total sales of previously occupied homes closed the year at 5.16 million units, up about 5% from 2008! That was the first a nnual sales gain since 2005. Granted, we all know prices dropped for the year. The average was 12.4% for 2009 vs. 2008. We actually did see home prices on a nationwide basis rise last summer.

In another report, inventory of unsold homes on the market fell about 7% to 3.3 million units. That's a 7.2 month supply at the current sales pace, close to a healthy level of about six months.

This is great news for owners and sellers of Maui real estate. For prospective Maui real estate buyers, it appears there will be no better time than now. Sellers are still anxious, and discounting dramatically. Inventory is still high enough that there is a good selection. Interest rates are at the lowest level on record. The Canadian dollar is stronger than it has been in decades.

I see the perfect storm, and I am ready to help all those who want help!

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, South Maui, vacation property in Maui, wailea real estate

The U.S. Conference Board announced Thursday that December's Index of Leading Economic Indicators rose 1.1%, over 50% higher than economists projected. This is the latest suggestion that growth could pick up this spring.

China declared it is over the global crisis and signaled a shift in focus to controlling inflation. Economic growth accelerated to 10.7% in the final quarter of 2009, driving the full-year expansion to 8.7%. The strong numbers keep China on a course to replace Japan sometime later this year as the world's second-largest economy after the U.S.

Labels: beach front real estate, Hawaii real estate, Keawakapu, Makena Real Estate, Maui Meadows, maui real estate, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

Wells Fargo sees signs of life in lending, but they are way ahead of their competition. Wells said it earned $394 million, or 8 cents per share, in the 4th quarter of '09, which surprised analysts who were expecting a loss of 1 cent per share. This is partly because Wells has already aggressively written down bad loans made before the downturn.

Banking analysts say that losses from failed loans historically peak six months after the end of a recession. That could mean lending will pick up again in the second quarter of this year.

Great news for Maui real estate buyers!

On the national real estate front, housing construction may be making a comeback as well. We have seen two consecutive months of growth in applications for new building permits. December saw an 11% increase to an annual rate of 653,000, a far stronger showing than economists had predicted.

If these economists would just get out of the way with their dire predictions, I think our economy could rebound even faster!

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

That is the title of the top of the business section of today's Maui News. The article explains how the Asian economies are near pre-crisis growth. Great news for the U.S., as we export to those booming economies.

We all know everything moves in cycles, and thanks to God that you and I have survived this one!

Ok Maui, I am ready for a great 2010 in real estate!

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

The survey of the Federal Reserve's twelve regions painted a picture of a growing economy. Ten of the Fed's 12 regions reported that activity had increased or conditions had improved. The remaining two- Philadelphia and Richmond- described economic conditions as mixed. In the Fed's previous survey one month ago, eight regions said activity had increased, or conditions improved.

This helped lift the DJIA again.

The survey also found the manufacturing activity increased or held steady in most Fed regions.

To sustain the recovery, the Fed is expected to leave the key bank lending rate at the record low near zero when it meets next on 1/26-27.

The housing market is healing, though most sales involved lower-priced homes. And in most parts of the country, home building stayed at low levels.

What does that mean? With still growing U.S. population, we should be seeing housing shortages in years to come.

One of my prospective clients quoted some wise words recently: "If you invest in the stock market, you live like a king and die like a pauper. If you invest in real estate, you live like a pauper, and die like a king!"

I resemble that remark!!

Labels: Hawaii real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, South Kihei, vacation property in Maui, wailea real estate

For the 19th year in a row - ever since the resort opened- The Four Seasons at Wailea has won the AAA Five Diamond rating, including 2010. Only one restaurant, La Mer at the Halekulani, has a longer string of the coveted and hard-to-attain ratings - 20. Only one other resort on Maui won the award - the Ritz-Carlton, Kapalua, for the 14th time.

We are proud to represent some of the finest real estate in the world here in Wailea, with the top-notch resorts right there for our enjoyment just a few minutes from home!

I'm sure you can understand why people often ask me, after I come home from a vacation: "Where does a person who lives and works in Wailea, HI go for a vacation?!"

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, vacation property in Maui, wailea real estate

I am looking at comparable sales, doing Broker Price Opinions for lenders, and see the prices are hitting below values of 2003-2004.

And the future looks bright:

The number of people claiming first-time unemployment benefits barely rose last week, after falling to its lowest level in 18 months the previous week. And the four-week average of claims fell for the 18th straight week.

On another report, retail sales in December displayed signs of life, rising 2.8% compared with a year earlier.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

The stock market posted robust gains on the first trading day of 2010. That was a result of a very encouraging report on manufacturing activity released Monday. The Institute for Supply Management, a trade group of purchasing executives, said its manufacturing index read 55.9 in December after a 53.6 in November. A reading above 50 indicates growth.

What is interesting is when the S and P index rises over 1% on the first day of the year, 86% of the time it finishes the year higher. The Standard and Poor's index rose 1.6% on Monday.

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

I am spending Christmas and New Years Day in California, and am very encouraged by what I am hearing and seeing from my associates here in Orange County. As we all know, if we want to know what is to come in Maui's real estate economy, we can just look at what is happening in Orange County.

The buyers are finding it difficult to find a good deal here in Orange County. The "fixer-uppers" are getting multiple offers as soon as they come on the market. The buyers are feeling confident that the economic woes of '08-'09 are coming to an end.

Wall Street apparently feels the same way. 2009 ended the Dow Jones Industrial Average down only 1.1% for the year.

Also, Jobless benefit claims fell to the lowest level since 2008 last week, sparking hope that the job market could be on the mend.

Happy New Year, from your resident Maui Optimist!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, vacation property in Maui, wailea real estate

Washington, DC – U.S. house prices rose 0.6 percent on a seasonally adjusted basis
from September to October, according to the Federal Housing Finance Agency’s monthly
House Price Index. The previously reported 0.0 (zero) percent change in September was
revised to a 0.4 percent decline. For the 12 months ending in October, U.S. prices fell 1.9
percent. The U.S. index is 10.8 percent below its April 2007 peak.

Shoot me an e-mail for the whole article.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, vacation property in Maui, wailea real estate

The four-week average for jobless claims was an encouraging sign that the pace of layoffs continues to decline. The four-week average is now at its lowest point since last September 2008.

Separately, a forecast of economic activity rose for the eighth straight month in November, signaling the economic rebound will continue into next year. The index of leading economic indicators rose 0.9% in November.

Labels: beach front real estate, Hawaii real estate, Keawakapu, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, vacation property in Maui, wailea real estate

The Federal Reserve decided yesterday to maintain the 0-.25% interest rate range for the federal funds rate for an "extended period". Great news for Maui real estate investors!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Silicon Valley house prices rise 13.9% in Nov. from a year earlier!

Click this link for the full article:


Silicon Valley house prices rise 13.9% in Nov. from a year earlier -

OR

http://www.mercurynews.com/bay-area-news/ci_14018242?source=email&nclick_check=1

Labels: beach front real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Retail sales grew in November by 1.3%, the healthiest increase since August and more than double the increased economists had predicted. Companies are rebuilding inventory also, the first increase after 13 consecutive declines. Chinese exports are mounting a comeback, as the U.S. dollar weakens against most foreign currencies.

Looking forward to Chinese buyers this winter coming to buy Maui real estate!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, vacation property in Maui, wailea real estate

The economic recovery is likely to draw strength from exports such as farm products, autos, aircraft and industrial machinery - all of which helped lower the nation's trade deficit in October.
Increased exports and a fall in oil imports combined to improve our trade deficit.

As a real estate broker, we are seeing Canadians, Japanese, and Chinese coming to Maui real estate with their strong currencies. We're looking forward to a strong winter season here in the Maui real estate business!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Yes, consumers are tightening up their belts on credit cards. That is a good thing. The nay-sayers will have us believe that that is bad for our economy. Since when is debt good? Sorry, it might be good, like you feel good the first few days you drive your new car. Then the bill comes in. I like the idea of reducing debt, so our kids and their kids don't have to bow down to China!

Read the last paragraph of the articles in the paper and on the web, and you see that this has been happening for nine months in a row. Lenders have tightened their belts, and are letting less money out, cutting credit lines, etc. They are finally doing what they should have been doing all along - lending responsibly.

Labels: beach front real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Check out the link on Maui News:
http://www.mauinews.com/page/content.detail/id/526514.html?nav=10

Up to 45' waves! And the crazy people riding those waves really make it interesting!

Why do people like Maui so much? Well, the natural wonders never cease!

Call me today and get your piece of Maui real estate. Some opportunities in Wailea and Makena real estate that look like 2001 prices!

Labels: beach front real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Existing Housing Sales Way Up! November saw existing single-family homes and condos rise sharply compared with November 2008. The Honolulu Board of Realtors reported the 46.5% increase in sfr sales, and a 102.5% explosion in condos. Median sales prices remained flat. Economist Paul Brewbaker projects sometime between 2012 and 2014 the local housing market will meet the last price peak. Maui real estate buyers- now is the time!

The most recent assessment by the Federal Reserve marked its most upbeat view since the recession began two years ago. Retail sales and factory orders and production are both up. Still, the Fed is expected to keep the key lending rate down to near zero through the en of the year and well into next year.

The United Nations forecast that the world economy will bounce back in 2010, with a global growth rate of 2.4%.

Layoffs in November were almost non-existent! Only 11,000 job losses last month, compared to 111,000 in October, and over 500,000 per month at the peak of the recession. Unemployment rate nationwide went down also, to 10%.

And to further help Maui's economy, check this out! Continental Airlines just announce four flights direct to and from Orange County, starting March 7. That is in addition to its daily flights to and from LAX.

Maui real estate is the place to be this winter. Don't expect the same values in six months!

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

State officials estimate airlines will provide nearly 2.2 million seats on flights to Hawaii from December through February. That would represent a 1.8% increase over the same three-month period a year earlier. Good for business, more people coming to Maui!

Labels: beach front real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Three positive reports came out yesterday.

1. The institute for Supply Management said its manufacturing index showed growth in November for a fourth straight month. Of the 17 industries surveyed, 13 reported higher orders.
2. The Commerce Department signaled growth with the report on construction spending, the first increase in six months.

3. The number of homebuyers who signed contracts to buy previously occupied homes rose for the ninth straight month in October.

Ok, Maui real estate, we're ready for a great high season!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Mortgage rates hit a record low this past week at 4.78% for a conventional 30-year mortgage. This is the lowest since records were first being tracked in 1971. Last year at this time, rates averaged 5.97%.

This should do well for the nation's real estate sales, which will do well for Maui real estate sales. Especially the low-end, with the tax credit incentives and low rates, buyers find it hard to pass up this once-in-a-lifetime opportunity!

This is my third real estate cycle in my career, and my experience says that typically we see the turnaround start at the low-end of the price spectrum, and work its way up.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

This is the best we have seen in a decade! Bidding wars for houses in some cities have pushed home sales up nearly 36% from their low-point in January. The National Association of Realtors said resales rose 10.1% in October, from September's volume. It was far better than economists expected, according to Thomson Reuters.

It is well known that Maui real estate follows the rest of the country, especially the California and western U.S. markets. Good times ahead!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

Beginning Monday, November 9, 2009, Alaska
Airlines will fly between Maui and Oakland
California, four times a week. On Tuesday
November 10, Alaska will begin three times a
week service between Oakland and the Big
Island. The new flights are operated with Boeing
737 aircraft that accommodate 16 passengers in
first class and 141 in the main cabin.
Travel

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

The 2011 Asia-Pacific Economic Cooperation will be hosted here in Hawaii where over 10,000 people will attend. This is the first time the APEC summit has been held in the United States (!) since 1993, when it was held at Blake Island, Washington.

This should bring lots of publicity and awareness to our beautiful state, right about the time our economy is booming again!

The Summit will be held at the Hawaii Convention Center in November 2011. It features leaders of 21 participating countries, senior government officials, business leaders, international economists, Asia-Pacific experts and worldwide media.

There hasn't been a high-level international gathering in the State of Hawaii since 2001, when the Asian Development Bank met here. Let's hope for a similar economic run that we saw after that last event!!

Labels: Hawaii real estate, Makena Real Estate, maui real estate, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

3rd drop in foreclosures hints at recovery; state-by-state chart
By Paul Wiseman, USA TODAY

Foreclosures fell for the third-consecutive month in October, another sign the worst of the housing crisis may be past.
RealtyTrac, an Irvine, Calif., real estate firm, reports Thursday that foreclosure filings totaled 332,292 last month, down 3% from September but up 19% from a year earlier. The figure means that one of every 385 homes received a foreclosure notice in October.
"It looks like it's leveling out," says Bernard Baumohl, chief global economist at the Economic Outlook Group in Princeton, N.J. "We're not seeing further deterioration in the housing market."
RealtyTrac CEO James Saccacio said that the third-straight monthly drop was unprecedented and perhaps a sign "that the foreclosure tide may be turning" but warned that "the fundamental forces driving foreclosure activity in this housing downturn – high-risk mortgages, negative equity and unemployment – continue to loom over any nascent recovery."
Four states – California, Florida, Illinois and Michigan – accounted for 52% of last month's foreclosures.
Seven of the 10 U.S. metropolitan areas with the worst foreclosure rates were in California: Vallejo-Fairfield; Modesto; San Bernardino ; Bakersfield ; Merced; Stockton; and Sacramento.
Nevada continued to have the nation's worst foreclosure rate: One in 80 Nevada homes got foreclosure notices in October. In Las Vegas, the figure was even worse: one in 68.
But foreclosures were down 4% in Nevada from a year earlier – the first year-over-year drop in the state since RealtyTrac started monitoring the figure in January 2006. RealtyTrac said a state foreclosure mediation program "may be slowing the inflow of distressed properties into the foreclosure pipeline."
Foreclosures shot up 56% in Illinois last month from September.
RECOVERY WATCH:Tracking the economy; see VIDEO
"Despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are substantially higher than a year ago in most states," Saccacio said.
Baumohl says vulnerable homeowners with adjustable-rate mortgages are benefiting from low interest rates that keep a lid on monthly payments. But he's worried that rates will rise – and hurt homeowners struggling to make their payments – as the economy improves and businesses start competing for credit with a deficit-ridden federal government.

If you would like to see the chart, state by state stats, shoot me an e-mail.

Labels: beach front real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, vacation property in Maui, wailea real estate

It seems Wall Street is pretty excited that the world is holding down interest rates. The extension of the Home Buyer's Tax Credit is good for real estate sales as well. What a great time to buy Maui real estate!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Productivity - output per hour of work - jumped at the fastest pace (9.5%) in six years, in the July - September quarter, the Labor Department said Thursday.

Also, the number of newly laid-off workers filing claims for unemployment benefits last week fell to the lowest level in 10 months.

GDP growth was reported at 3.5% for that quarter as well. The recession will be "officially" over if we see one more quarter of growth.

Good news for the near future real estate sales on Maui!

Labels: beach front real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

The Senate ok'd the extension to June of 2010 the $8000 tax credit for first-time homebuyers. Also, they expanded to include a $6500 credit for people who have lived in their current residences for at least five years, as long as a buyer enters into a binding contract before April 30. It doubles the income ceiling for qalification to $125,000 for individuals. The credit is available for homes purchased at under $800,000.

That will help many buyers here on Maui!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

The recent stats for Maui real estate are interesting.

Last month, 75% of all sales were under 700k. 10% were 700k to $1 million, and 15% were over $1 million.

There are 151 properties in escrow in South Maui, not counting short sales. Short sales are not possible to count, as most agents do not report them as Pending sales until the lender has accepted the offer price and the seller has accepted the lender’s terms.

Last month 39% of all sales were either REOs (real estate owned by a bank) or short sales. 15% were REOs, 24% short sales. I just came from Southern California where 60% of all sales in Orange County are REOs or short sales, so Maui is still holding it’s own.

Sales are holding up. August 2008 actually saw two more units sell than in August of 2009. But for September ‘09, we had 54 sales in South Maui, vs. 44 in September of ’08.

Coldwell Banker Island Properties is doing quite well. Last year in October we closed 50 transactions. This year we closed over 60.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

The Renaissance Wailea Beach Resort developer wants to bring the hotel, closed since September 2007, back to life. If financing can be arranged, the development direct for Kobayashi Group LLC told the Maui Planning Commission that they would like to amend the sma and other permits the hotel got in 2006, and name the renovated resort, with 290 rooms, 1 Wailea Resort and Residences. Previously, prior to closing, the resort had 349 rooms.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Majority Leady Harry Reid and Sentate Finance Committee Chairman Max Baucus are trying to extend the $8000 tax credit - which expires November 30 - through March 31. Then it would go down by $2000 per quarter through the rest of the year, until it is phased out by the end of 2010. Homebuyers have really taken to that credit, as we have seen a nice jump in home sales this most recent quarter.

Maui real estate buyers and Realtors should be happy to see this happen!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

81% of the first 199 companies companies listed on the Standard and Poor's 500 index that reported earnings in the 3rd quarter came in above analysts' expectations. More positive news for Maui real estate!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

After jumping 9.4% in September, home resales are up nearly 24% from the bottom in January, according to the National Association of Realtors. Sales increased last month by the largest amount in more than 26 years!

In another positive sign, the inventory of unsold homes on the market fell almost 8% to 3.6 million. That's less than an eight-month supply at the current sales pace, and the lowest level since March 2007.

The competition for low-priced foreclosures has become fierce in places like Las Vegas and Southern California. Aldo Martin of Covina, CA, had to put offers on 16 houses before having one accepted this week.

Maui buyers- what we see in So Cal, we see on Maui. Get your checkbooks ready, the race will begin on 12/15 when high season hits the Hawaiian Islands.

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

The index of leading economic indicators rose 1% last mont after a 0.4% gain in August. Wall Street economists only expected a 0.8% gain, according to a survey by Thomson Reuters.

Economists expect the economy grew about 3% in the 3rd quarter, after falling for a record four quarters.

The indicators' 5.7 growth rate in the six months through September was the strongest since 1983!

We are still seeing weekness in the California and Nevada economy, but nationwide, things are looking good.

What a time to buy Maui Real Estate. Prices are down, the future is bright, but many sellers are still in a position where they must sell soon.

I have compiled a current list of over 50 below-market south maui real estate bargains!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, South Kihei, South Maui, vacation property in Maui, wailea real estate

At 4.89% on 30-year home loans, refinance applications climbed 18% last week, according to the Mortgage Bankers Association. With extra cash lining their pockets each month, homeowners could help the economy recover.

Another positive statistic is the new jobless claims report, down for the fourth month in a row in September.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

For the 15th time Maui was voted by Conde Naste travel magazine as the #1 island in the WORLD! Of the top 20 resorts in the state of Hawaii, Maui is the home of 9 of them!

Labels: Hawaii real estate, Makena Real Estate, maui real estate, property in Maui, vacation property in Maui, wailea real estate

The first time homebuyer tax credit may be extended, and even expanded, according to House Speaker Nancy Pelosi.

The $8,000 credit is set to expire Dec. 1.

“Yes, there is under consideration whether we extend the first time homeowners credit,” Pelosi said at a news conference Thursday. “And the question is, would that be just first time homeowners or would you open it up to other purchasers of homes.”

Great news for entry level Maui real estate buyers!

See the full article at:

http://milwaukee.bizjournals.com/milwaukee/stories/2009/10/05/daily77.html

Labels: Hawaii real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Mauians should be happy to hear that Americans are feeling wealthier again, and have positive expectations for the future of our economy. The last time the Dow Jones Industrial Average saw 10,000 was on its way down in October of 2008. The index is up 53% since early March.

What a great time to buy Maui real estate! Negotiable, some desperate sellers, at a time when the rest of the country believes we are at the bottom. Buy low, sell high, right?

And interest rates literally below 5%!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, South Maui, vacation property in Maui, wailea real estate

China's Hainan Airlines just received approval to fly direct from Beijing to Hawaii. Service will begin early next year. While the Chinese are buying our T-bills, they are also spending more time here. We have seen Chinese visitor count in Hawaii go from 10,000 per year in the early 90's to about 30,000 in '98, to 60,000 last year.

Is Chinese is the new Japanese? And we here in Maui welcome them!! As a Maui Realtor, I look forward to our newest hot market in Maui real estate.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Maui real estate prices should soon reflect the feeling of increased wealth of prospective buyers, as the stock market continues to set new highs for the year. Stock prices rose 4% just this week!

I know Coldwell Banker Island Properties here on Maui is seeing much better activity this year compared to last. As a matter of fact, we had 63 new escrows opened in September. That compares to 3-4 escrows per month a year ago (October and November '08)! A large majority of those escrows were out of the Wailea offices, showing the strongest demand on Maui is in Wailea and Makena.

Labels: Hawaii real estate, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Americans are finally spending a little more- A tally of sales at top stores posted a gain in September for the first time in more than a year, according to Goldman Sachs' International Council of Shopping Centers.

New jobless claims fell to the lowest mark since January. Also, the Labor Department said yesterday that the four-week average of new claims for unemployment insurance is the lowest since January 17.

One more positive item: Federal Reserve Chairman Ben Bernanke plans to keep the Federal Funds rate, still at a record low near zero, and was quoted as saying they will keep it there for "an extended period of time". These super-low rates will entice people and businesses to spend more, nurturing the budding recovery.

Folks, when is the best time to buy real estate? When the market is low. Sellers are hurting right now. Many of them cannot wait for the rebound. If you have cash on the sidelines, now is the time to put it to work. Ten years from now, everyone will know you as the "visionary" of the family!

The California Association of Realtors is reporting a strong sales rebound taking place as we speak. And as we all know, Maui real estate follows shortly after the California market.

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

It is great news to see that Continental Airlines is adding daily flights from LAX to Honolulu, and four days per week they will be flying from Honolulu to Orange County! Apparently Continental Airlines is bullish on the Hawaii economy!

Australia's Central Bank apparently believes the worst is behind us, as they just raised their key lending interest rate. They are the first major economy to do so since the financial crisis worsened last fall. Still many economists do not expect the U.S. Federal Reserve to do the same any time soon.

One more positive note: Consumers cut their borrowing by $12 billion in August, the seventh straight month of reduced borrowing by consumers. In the short run, it does not help with consumer spending, but in the long run, less debt means more disposable income for consumers, since they don't pay all that money in interest expense!

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

A mind-blowing article!

http://housingstorm.com/2009/10/is-the-fdic-killing-short-sales/

Usually I only like to publish happy uplifting positive news.

But like Jim Rohn says, an orchestra doesn't only play high, happy notes. You have to have the low notes, the bass notes, the low booms, to make it interesting.

Well, if this article doesn't make you steaming mad, you have a very calm composure!!

Labels: Hawaii real estate, Lahaina, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

The Honolulu Board of Realtors reported that Oahu's existing housing market showed ROBUST movemement in September. 244 SFRs sold last month, at a median price of $600,000. Thats up from 215 homes with a median price of 590k one year earlier.

Condos had a similar story. 345 condo sales in September, median price was 305k, up from 305 condos at a median price of 296k one year ealier.

It appears that consumer confidence is definitely taking a turn for the better!

Labels: Hawaii real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

Maui County hotels were two-thirds occuipied in August (66.2%), an improvedment from the all-time lows of 55% in May!

Labels: beach front real estate, Keawakapu, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, property in Maui, vacation property in Maui, wailea real estate

Well, the Maui News would like you to think this is bad news. GDP growth for the 4th quarter is project to be around 2.5% in the U.S. Why is that bad news? I'll take 2.5% growth from here to forever, thank you very much. I'm sure Maui would rather see long-term sustainable growth, rather than the fits and starts we have seen over the past decade. These estimates, by the way, are according to analysts at IHS Global Insight, Moody's Economy.com and Wells Fargo.

In other positive economic news, the Standard and Poor's/Case-Shiller home price index of 20 major cities rose 1.2% from June to July. Though home prices are still 13.3% below July a year ago, the annual declines have slowed in all 20 cities for the sixth straight month.

Labels: Hawaii real estate, Makena Real Estate, maui real estate, maui realtor, ocean front real estate, vacation property in Maui, wailea real estate

Check out this most recent article from Edward Jones:
(Shoot me an e-mail if you would like the pdf version.)

8 Reasons Why (We Believe) the Recession Is Over
We believe the worst recession since the 1930s is over. Signs of recovery are everywhere. It’s time for investors to look forward
and to stop looking back. In this report, we discuss eight reasons why we believe this recession may be over.
RES-5426A-A SEP 2009 Page 1 of 2
U . S . S t r a t e g y R e p o r t
1 Leading economic indicators are positive.
The Conference Board’s Index of Leading Economic Indicators, which is designed to anticipate changes in the economy by
three to six months, rose 0.6% in July for its fourth consecutive gain. This gauge has an impressive track record of calling
turns in the economy. The stock market, another leading economic indicator, has already rebounded 50% from its March lows.
2 Global economies are recovering.
The Organisation for Economic Co-operation and Development’s (OECD)1 composite leading indicators for its member
countries recorded their largest increase in June since records began in 1962. For the first time ever, all 33 countries
recorded an increase. Japan’s economy grew this past quarter for the first time since early last year. Europe also appears
to be pulling out of recession, with positive growth reported in the most recent quarters in Germany and France.
3 The job market is improving.
Non-farm payrolls fell by just 247,000 in June, while the unemployment rate eased from 9.5% to 9.4%. The rate of
decline in payrolls has been improving since January, when payrolls declined by 741,000. Employment has been a
lagging indicator of the economy, improving at the end of or well after every recession in the postwar period.
4 The Federal Reserve’s efforts to stabilize the financial system worked.
The massive efforts to slash interest rates and provide trillions in funds to the financial system have succeeded in restoring
conditions in the money and corporate credit markets. Corporate America has taken advantage of attractive rates to refinance
old debt and fund new acquisitions. Companies issued more than $800 billion in new bonds during the first seven months
of 2009 – nearly a third more than a year earlier. In the money markets, the three-month London interbank offered rate is
down to 0.43%, less than one-tenth of where this short-term benchmark stood at the worst of the credit crisis last October.
5 Bank lending is increasing.
Banks’ profitability and capitalization have improved, and banks have started lending again. According to the Fed’s recent
periodic survey of banks, about 30% said, on net, they tightened lending to businesses in May, June and July, but that’s
down from roughly 40% in April’s survey. The percentage of banks that tightened standards on commercial real estate
loans dropped 20 percentage points to 45%. For residential real estate, the percentage fell to 20% from a peak of about
75% a year ago. Most banks expected lending standards across all loans would remain tighter than their average levels
over the past decade until at least the second half of 2010. However, the improvement in bank lending should be enough
to support economic recovery.
6 Expectations for 2010 economic growth continue to improve.
❚❚ In a recent Wall Street Journal survey, 80% of economists said they believe the recession either has ended or will end by
September. In addition, economists continue to upgrade expectations for growth in the rest of 2009 and beyond.
❚❚ The top 50 U.S. economists2 expect the economy to grow 2.2% in the third quarter, after falling just 1% in the second quarter.
❚❚ Economists in August lifted their projection for third-quarter growth by 1.2 percentage points over July’s estimate to
2.2%, according to the median of 55 forecasts in a Bloomberg News survey. That is the biggest such boost in surveys
dating from May 2003. Forecasts for 2010 were raised to 2.3% from 2.1%.
❚❚ The International Monetary Fund said in a recently revised forecast that the world economy will expand 2.5% in 2010,
compared with its April projection of 1.9%.
RES-5426A-A SEP 2009 Page 2 of 2
7 Housing has bottomed.
Sales of existing U.S. homes jumped more than expected in July to the highest level in almost two years, signaling the
worst of the housing recession may have passed. Purchases climbed 7.2% to a 5.24 million annual rate, the most since
August 2007, the National Association of Realtors said recently. The gain was the biggest since records began in 1999.
The S&P/Case-Shiller home price index advanced 2.9% in the second quarter from the previous three months, the first
increase since 2006 and the biggest in almost four years. Foreclosure-driven declines in prices, government credits for
first-time buyers and near-record-low borrowing costs are expected to continue stoking demand.
8 Manufacturing is on the rebound.
The Fed said industrial production rose 0.5% in July, the first increase in nine months. European industrial orders
increased 3.1% from May, the biggest gain in 19 months, according to the European Union’s statistics office. For the first
time since January 2008, an index based on a survey of U.S. purchasing managers crossed a threshold indicating factory
output grew. Manufacturing activity in China, France and Australia, among other countries, also expanded in August,
separate surveys showed. The pace of contraction in Germany and some other nations slowed markedly.
Alan F. Skrainka, CFA
Chief Market Strategist www.edwardjones.com Member SIPC
Don’t Bet Against History
Historically, the stock market has performed well once
recessions end. The chart below shows the performance of
the S&P 500 six and 12 months after postwar recessions
ended. While history is not always an accurate guide to the
future, it does suggest that investors who are out of the
market are betting against a lot of history.
Source: Ned Davis Research. Daily data starting in 1947. Six months measured by 126
market days; 12 months measured by 252 market days.
You Can’t Recover If You’re Not Invested
There are always risks to the outlook. The recovery could be
uneven, or something unforeseen might derail the progress
we’ve made. The stock market could correct at any time for
any reason. But these things are unpredictable. Our advice
remains the same: Don’t base your investment decisions on
predictions; base them on investment principles. Focus on
the things you can control: the quality of the investments
you own and the diversification of your portfolio. Maintain a
long-term perspective.
It looks as though the economy is improving, but that
doesn’t mean you should throw caution to the wind. Instead,
sit down with your Edward Jones financial advisor and talk
about ways you can take advantage of the improving climate
while still managing risk.
And remember, you can’t recover if you’re not invested.
1 The OECD, located in Paris, spells “organisation” as it’s listed.
2 Latest Blue Chip Economic Indicators survey
Information in this report is as of 9/2/09.
S&P 500 Performance after Postwar Recessions
Recession End
Dates
% Change
6 Months Later
% Change
12 Months Later
10/31/1949 10.97% 19.57%
5/25/1954 18.63 29.98
4/30/1958 17.77 37.12
2/28/1961 7.86 7.51
11/30/1970 15.06 4.49
3/31/1975 6.57 30.63
7/31/1980 1.28 1.82
11/30/1982 15.46 22.18
3/28/1991 3.55 12.14
11/30/2001 -1.66 -10.04
7/31/2009 (est.) TBD TBD
Average 9.55% 15.54%
Why Does It Take So Long to Call Recessions “Officially Over”?
The official “scorekeeper” of recessions is the National Bureau of Economic Research (NBER), a private organization in
Cambridge, Mass. These folks aren’t terribly interested in forecasting turns in the economy. Instead, they focus on making
sure their recession start and end dates are absolutely accurate and not subject to future revisions. Robert Hall, who
heads the NBER’s Business Cycle Dating Committee, recently said it is “more important” this time around for the group
to adhere to the principle of not calling an end to the recession until after economic growth has surpassed its previous
peak, “which could take 18 months or more to determine.” The group took until July 2003, 20 months after the fact and
well after stock prices had begun to recover, to declare the last recession had ended.

Labels: Hawaii real estate, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, wailea real estate

The Federal Reserve has signaled confidence in a recovery yesterday, when it decided to stretch out the pace of a program intnded to lower mortgage rates and prop up the housing market. Rather than buying $1.45 trillion in mortgage backed securityies and debt by the end of this year, they pushed that deadline back to the end of March. That's the second time since August that the Fed has opted to slow emergency programs designed to encourage spending and boost the economy.

On a personal note, my wife, Debbie, is an interior designer. She went into Pottery Barn yesterday, and they told her that nationwide, Pottery Barn just had its best month (last month) in the past two years! It looks like consumers are feeling more confident as well.

At Coldwell Banker Island Properties, as of the 15th of this month, our company has put 27 properties in escrow. That's about two new escrows per day, the same pace we had in August. September is typically a very slow month here, but it doesn't seem to have slowed down.

Also, another agent just told me yesterday she has a $10 million cash beachfront buyer coming into town, and when she searched for properties to show him, six beachfront properties that she had hoped to show were either in escrow or closed escrow.

On the low-end, Kihei Villages is showing some real strength. There are only 14 Active listings in the complex of 532 units. Typically, if less than 5% of a project is available for sale, that indicates strength in values. There are six units in escrow in the complex right now, and in the past six months, 13 unit sales have closed in the complex. That means we have less than six months' inventory, another strong indicator for future values.

Labels: Hawaii real estate, Kihei, Lahaina, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, vacation property in Maui, wailea real estate

The Index of Leading Indicators is up for the fifth month in a row. This is the most recent sign that the recession has ended. The report points to an economy on solid ground early next year, as this indicator is designed to project economic activity in the next three to six months. The Index was up 0.6% in August, following a 0.9% increase in July!

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, maui real estate, ocean front real estate, vacation property in Maui, wailea real estate

For the first time in two years, Americans actually got wealthier. Household wealth grew by $2 trillion, or about 4%, this spring, ending the longest stretch of quarterly declines on records dating back to 1952, accourding to the Federal Reserve report on Thursday. Not Worth - Assets such as homes, checking accounts and investments minus debts like mortgages and credit cards, came to $53.1 trillion for the second quarter.

Hallelujah!

Labels: Hawaii real estate, Makena Real Estate, maui real estate, maui realtor, property in Maui, vacation property in Maui, wailea real estate

U.S. businesses reduced inventories at the wholesale level for a record 11th consecutive month in July. Plus sales rose by the largest amount in more than a year.

In a separate report, global trade is increasing U.S. imports by a record amount in July and boosting foreign demand for American goods for a third straight month.

An first-time unemployment claims for unemployment benefits fell more than expected last week - cause for more optimism.

It seems the positive indicators coming out in the news, if you compare them to the negative indicators, are winning 2:1.

I'm ready!

Labels: Hawaii real estate, Keawakapu, Kihei, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, wailea real estate

Maui hotels maintained their occupancy rates in July, while visitor arrivals were up. They didn't stay as much at hotels, however: Instead, they stayed with friends and family (up 17.3%), on cruise ships (up 12.6%), and in time shares (up 12.4%). Although that may not directly be good news for the hotels, it is good news for the economy! More visitors means more visitors' dollars coming to Maui!

In a separate report, the Federal Reserve "Beige Book" study showed that 11 of the 12 Federal Reserve regions in the united states idicated economic activity was either "stable", "showed signs of stabilization" or had "firmed". Analysts predict the economy is growing in the current quarter, which ends September 30, at an annual rate of 3 to 4 percent.

Prices are down in Maui Meadows. A foreclosure at the top of Maui Meadows, on Kupulau Drive, listed at 650k, had four offers! One of those offers was my clients' offer for 700k. Our offer was the third best offer on the table!! Looks like there are buyers out there when the property is priced enough below market. Looks like the bottom to me.

Labels: Hawaii real estate, Keawakapu, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, property in Maui, wailea real estate

There is so much more evidence, just in the past two days:

1. Factory Orders up 1.3% in July, after a 0.9% increase in June.

2. Productivity of U.S. factories rose 6.6% in the April-June quarter, the largest advance since the summer of 2003.

3. Hawaii state bankruptsy filings increased at their slowest pace in 15 months in August. The state of Hawaii had the second-lowest bankruptcy filings per 1000 in the country, only behind Alaska. Between the start of July 2008 and the end of June 2009, there were 2.07 bankruptcies per 1000 population.

4. Oahu hotel occupancy ranked first among competitive international island destinations through the first half of the year, and fifth in major country and regional destinations around the world.

5. Home sales nationwide rose 12% compared to a year ago.

6. The manufacturing index reported by the Institute for Supply Management showed the highest number for its manufacturing index since June 2007. New customer orders jumped to a level not seen since late 2004!

7. U.S. residential construction spending just had the best showing for home builders in 10 months.

8. The National Association of Realtors said the index of sales contracts signed in July for previously occupied homes rose 3.2%. Coldwell Banker Island Properties just had our best month since 2007, with 66 new escrows opened in the month of August!

9. Wall Street seems to agree with the title of this Blog, as we just had a month-long rally in the stock market.

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, vacation property in Maui, wailea real estate

Up 9.6% in July, new home sales are rising in all parts of the U.S. and Hawaii, including Maui. This is the fourth month in a row that new home sales have risen. Sales haven't risen so dramatically since February 2005. Maui real estate buyers should not hesitate, Maui sellers are sure to start realizing the bottom has been realized, and it will only get better from here.

Economists are almost unanimous in their projects that we can stop worrying about the housing market, and start paying closer attention to other issues, such as when credit will start flowing more freely.

The Dow Jones Industrial average just had it's seventh record high for the year in a row yesterday.

Durable goods orders also surged last month, home, car and equipment sales soared by the largest amount in years in July.

Economists are predicting that the economy in the July-to-September quarter is poised to grow strongly.

Today the Labor Department will release it's jobless claims report. That report will likely determine if we see the Dow reach it's eight high for the year in a row!

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, property in Maui, wailea real estate

Consumer confidence index rose to 73.5 in August, from 63.4 in July. That's a 16% increase in just one month!

With home prices at 2003 levels, what a great time to buy. Such as Wailea Elua #2110. Gorgeous ocean views, for $1,590,000. Just two years ago, the identical unit next door sold for $2.1 million!

Labels: beach front real estate, Hawaii real estate, Makena Real Estate, maui real estate, maui realtor, ocean front real estate, wailea real estate

The cruise business here rose and peaked in 2007. It was great for merchants, and our economy in general. Since then we have watched the number of cruise ships visiting the islands slowly decrease. Princess Cruises just announced that they will be adding four or five sailings for the 2010-11 season, which will account for about a 30% increase! Hopefully Princess will be the leader in increasing ships to Hawaii.

In other good news, we saw the Dow rise 370 points last week, on the heels of Chairman Ben Bernanke's declaration that the economy is on the verge of recovery.

At Coldwell Banker Island Properties, we just had our best week since 2007, 27 new escrows in one week! One year ago, we were doing 2-3 escrows per MONTH! This is exciting news for those of us who own real estate here, and for buyers with cash. The sellers are negotiating more than we have seen in 10 years, interest rates are at record lows (below 6%!), and prices are at 2003 levels.

When is the best time to buy? When we are at the bottom of the market, but the sellers don't know it yet! Could we be there today?

Labels: Hawaii real estate, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, property in Maui, South Kihei, wailea real estate

Lots of good news today!

Federal Reserve Chairmani Ben Bernanke yesterday gave his most optimistic outlook since the financial crisis began, saying the economy is on the verge of growing again.

July home sales surge for the fourth month in a row, posting the largest monthly increase in at least ten years. Sales jumped 7.2% to an annual rate of 5.24 million units. This was the strongest month since August 2007.


Demand for entry- and mid-level houses has led to bidding wars in Southern California, as buyers are shopping for homes again, optimistic that values have been beaten down about as low as they will go and triggering the highest sales levels in more than two years. A report released Tuesday shows a sharp rise in home purchases and an increase in median prices for a third straight month -- suggesting that the two-year decline in home values may finally be over. The complete article can be viewed at:
http://www.latimes.com/business/la-fi-home-sales19-2009aug19,0,5419938.story

Labels: beach front real estate, Keawakapu, Kihei, Lahaina, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, South Kihei, South Maui, Wailea, wailea real estate

Good news for Hawaii travellers. Over 170 new Hawaiian Airlines positions will be filled soon, after having hired 100 new workers in recent months.

Economists say that employment growth follows the economic growth. Could this mean...

Hawaiian is about to add a new long-range Airbus, with a range of close to 7000 miles, to its fleet. That will give Hawaiian the ability to fly nonstop to all of North America as well as points in eastern Asia.

The world is getting smaller, and Hawaii is getting closer to everyone in the process!

Labels: Keawakapu, Kihei, Lahaina, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, property in Maui, South Kihei, South Maui, Wailea, wailea real estate

According to the National Association of Realtors survey, existing home sales prices are up! Check out the survey from NAR or cut and paste this link into your browser:
http://www.realtor.org/press_room/news_releases/2009/08/2nd_Helped?LID=RONav0021
These results were released yesterday, 8/12/09.

Plus, the Fed announced they are leaving the Federal Funds rate unchanged at the 0% to 0.25% range. You can't get much better than free money!

Good times ahead!

Labels: m, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, South Kihei, South Maui, vacation property in Maui, Wailea, wailea real estate

The first time that the jobless rated dropped in 15 months happend in July. A net total of 247,000 jobs were lost last month, while the average workweek and wages went up in the newest figures. Economists are overwhelmingly in agreement that the recession is in transition to recovery.

Labels: beach front real estate, Keawakapu, Kihei, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, South Kihei, South Maui, vacation property in Maui

For the second month in a row, we've had an uptick in single-family home resales prices. Through July, $1.5 billion in real estate transactions have closed, not bad for what Maui News likes to call "the worst recession since..."

Median prices were up from June on condos and single family residences. SFR's were up a whopping 4.6% in just one month!

The positive news just keeps rolling in...

Labels: beach front real estate, Keawakapu, Kihei, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, South Kihei, South Maui

Well folks, I know good news doesn't sell. But if you want to find it, here it is!
U.S. Manufacturing activity is expected to actually grow next month for the first time since January 2008.
Construction spending rose for the second time in three months in June, as residential building increased. The 0.3% increase is a far cry from the expected 0.5% drop!
The S&P index is back to 4-digit territory, closing over 1000 yesterday for the first time since 11/4/08. That puts the index up over 48% since March.
The Dow Jones Industrial Average rose for the fourth day in a row today.
Real estate prices are holding steady, inventory is decreasing nationwide, and public optimism is growing.

Labels: beach front real estate, Keawakapu, Kihei, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, South Kihei, South Maui

Napoleon Hill in his book "Think and Grow Rich" says one of the keys to success in life is a PMA- a Positive Mental Attitude.

I realize with all the bad press out there, it is difficult to maintain a positive mental attitude. Well, my broke brother-in-law will tell me, "I'm POSITIVE that the end of the world is near!" I don't think that is what Napoleon had in mind.

I scour the media for that positive news. I don't believe in watching Constant Negative News CNN. There are sources out there with the good stuff, although those sources are few, and they are careful not to have a bent in that direction.

Here is some of that Positive News I found over the past couple of days:

1. Hawaii foreclosure rate fell in June by 13.5% from May! 706 properties in June went in foreclosure vs. 816 in May.

2. The jobless rate in Hawaii for June was 7.4%, unchanged from May.

3. Stocks ended the week with an enormous gain, about 7% for the week!

4. New Home construction across the U.S. rose in June to the highest level in SEVEN MONTHS! Up 3.6% from May! This was the second straight monthly increase.

5. Bank of America joined other major banks in reporting better-than-expected second quarter earnings on Friday.

6. Friday I saw Paul Brewbaker, chief economist for Bank of Hawaii. Paul said that the bottom of Oahu SFR sales happened in January, and inventory has been shrinking ever since. He pointed out that increased sales and decreased inventory always precede increases in prices. He also pointed out: "Wouldn't you be an idiot to miss the $8000 tax credit from the Federal Government, these historically low interest rates, combined with these phenomenal prices and still crazily negotiable sellers??!!"

We may never see an opportunity like this again in our lifetimes.

All in all, folks, the end IS near. The end of all the BAD news, that is! Hallelujah!

Labels: Keawakapu, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, South Kihei, South Maui, Wailea, wailea real estate

An associate was recently showing her prospective buyer properties here in Wailea. The prospect owns a newspaper in the Midwest. The Realtor suggested to her client that he start a newspaper her on Maui called "Maui's Good News", since we are so much lacking any good news in our existing publications. Her client said "Good news doesn't sell newspapers. It would never fly!"

Do you wonder why the Maui News has such a hard time talking about the good news?

Why not talk about the fact that real estate values went up year after year from the mid 90's through 2007, before we had some correction. No, the newspapers must have huge headlines about how we are in a depression!

How about the fact that since the early 90's through 2007, Maui tourism increased every year, except for a short downturn after the 9/11/01 terrorist attack. No, it is more important that we know that last year saw 12% decline.

How about the fact that the median sale price for a residential home on Maui ROSE from $487,500 in May, to $499,053 in June '09. No, instead, the news is that the number of residential homes sales declined in the first six months of '09, compared to the same period the year before.

Ever heard that numbers don't lie? Well, that's a lie! Numbers can say whatever you want them to say, if you look hard enough. The Maui media looks long and hard for the negative angle whenever possible.

How about that the Department of Labor and Industrial Relations Director just noted that the construction industry actually showed a modest move to positive territory, with 100 new jobs across the state in June? No, let's talk about UNemployment, not employment! Hawaii's unemployment rate is still 2 percentage points lower than the national average. But let's not mention that, that is the GOOD side of the news.

And GOOD news doesn't sell newspapers!

Well folks, I choose to believe that we are in GOOD times. And I also choose to believe that what we expect is what we get. As a result, and for the grace of God, I am having a great year!

I see that I am not the only one with a positive attitude. According to a new Associated Press-GfK poll, debt-related stress was 12 percent lower this year than in 2008. "People now have some optimism that the worst is behind them", according to Paul J. Lavrakas, a research psychologist and AP consultant who analyzed the results of the survey.

So when someone in your family wants to turn on Constant Negative News - CNN - turn it off!

Labels: beach front real estate, Makena, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, ocean front real estate, South Kihei, South Maui, Wailea, wailea real estate

A recent nationwide poll shows about half of potential homebuyers are skittish about making the move, their number one concern is job stability.

Realtor.com released the survey on Thursday, showing 53% of the people who would be buying a home in the near future, are not quite ready yet.

This is quite an optimistic report for those of us who are active in the market, for two reasons:
1. If we are still alive (!), we can see the pent-up demand is building, and it is just a matter of time before all "heck breaks loose"
2. Because the number of sales are down, there is an incredible number of bargains to be had out there right now. The inventory provides excellent choices, unlike the '05 rally, where buyers took whatever came up, just to get into the screaming market.

Among those who are planning to buy in the near future, they don't expect prices to drop further, and they want to take advantage of the government incentives while they are here. These incentives are over effective 12/1/09.

If you would like to see the whole article, just shoot me an e-mail titled "skittish buyers", and I'll shoot it right back to you.

Labels: Kihei, Makena, Makena Real Estate, Maui Meadows, maui realtor, South Kihei, South Maui, Wailea, wailea real estate

"What is a Realtor and why do I need to use one when I buy or sell property?"
One reason to use a Maui Realtor is to tap his or her knowledge about the local market and various government programs that can help get a family into a home. This includes assistance to first-time homebuyers who are currently eligible for an $8,000 tax credit on home sales that close by Dec. 1.
In addition to their market knowledge, Realtors are trained and state-licensed professionals who are constantly updating their skills and knowledge of the market. Maui Realtors also subscribe to a strong multiple listing service that provides them with the latest information on what is for sale and for how much.
State law requires real estate agents to pass tests that require considerable schooling to obtain a license. They are supervised by the state Real Estate Commission.
The term Realtor is a registered collective membership mark that identifies a real estate agent who is a member of the National Association of Realtors (NAR). Realtors who are NAR members must adhere to the association's strict code of ethics that determines how we must honestly and faithfully work for the best interests of our clients. Non-realtors are not governed by this code.
When you're ready to buy or sell your property, ask yourself the following questions: Do I have the time, energy, sources of information and contacts to do the job myself? If you are a do-it-yourself person, will the results be as good or better than they would be if you had professional assistance? Would the deal have gone smoother? Would it have given you more personal time? Would you have purchased for less or sold for more if a real estate agent was involved?
Real estate agents, or brokers, generally are paid through the sales commission paid by the seller when a transaction closes. The property buyer does not pay for the services of a Realtor when buying property.
A real estate agent can assist in the selection of a home by providing objective information about each property available. Agents who are Realtors have access to a variety of informational resources. Realtors can provide local community information on utilities, zoning and schools, etc.
There are a myriad negotiating factors, including, but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should also provide a period of time for you to complete appropriate inspections and investigations of the property before you sign the last document. Your agent can advise you as to which investigations and inspections are recommended or required.
With a negotiated purchase agreement in hand, it is time to complete the evaluation of the property. This could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, tests of septic tank and wells, just to name a few. Your agent can assist you in finding qualified, responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property.
Title indicates ownership of property and can be mired in confusing status of past owners or rights-of-access. The title to most properties includes some limitations such as easements or access rights for utilities. Your agent, title company or attorney can help you resolve issues that might cause problems at a later date.
Finally, there is the closing when the property actually changes hands and the proceeds are distributed. Every area has its own unique customs. In Hawaii, a title or escrow company will handle this process. Your real estate agent can guide you through the process and make sure everything flows together smoothly and there are no last-minute problems that could derail the sale.
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $300,000. If you had a $300,000 income tax question, would you attempt to deal with it without the help of a CPA? If you had a $300,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it can be foolish to consider a real estate purchase or sale without the professional assistance of a Realtor.

Labels: Makena Real Estate, Maui Meadows, maui real estate, maui realtor, South Maui

It was a great month for Coldwell Banker Island Properties! Last month, June '09, our four offices put 56 homes, condos, and land in escrow on Maui. Six to eight months ago, we were putting 3-4 units in escrow per month. One year ago, June '08, our company put 30 units in escrow. So activity is double this year over last! It looks like buyers have finally said "How low can it go???"

Economics in the news are a little hard to decipher. Bankruptcies are up 65% in the State of Hawaii for the first six months of '09 vs. the same period in '08. But unemployment figures are looking optimistic. And today's increase in the manufacturing index is a positive indicator.

Longer-term positive statistics come from the lack of construction spending. Nonresidential building is strong, but a decline in housing construction bodes well for long-term values. Demand may be down short-term, but we all know the pent-up demand eventually has to be met. And with little or no new construction taking place on our beautiful island, which direction do you think prices have to go when the market breaks loose?

Labels: Makena Real Estate, Maui Meadows, maui real estate, ocean front real estate, South Maui, wailea real estate

Wow! What a great time to be a real estate buyer on Maui!



Maui residential real estate sales were better in May than in April, although still not much more than half as much as in May 2008. The Multiple Listing Service report of the Realtors Association of Maui on Monday showed sales of 56 single-family houses and 47 condominiums closed in May. In May 2008, there were 97 houses and 84 condos closed.



However, the number of sales improved from the 48 houses and only 29 condos in April. Prices were little changed from April, but cumulative numbers for the first five months averaged 19 percent lower (for houses) and 31 percent lower (for condos) than the year before.



Average house prices are up slightly in Kihei ($695,393) and Central Maui ($513,990) so far this year; but they are down sharply in most of the rest of Maui.



The market is taking it off the top. In Lahaina, for example, the average house price has dropped by a third to $958,850. But the median price (at which half of sales were for more, half for less) is almost steady at $830,500.



This average is based on only a few transactions - a dozen in Lahaina - but the inference is supported in other west-side communities.



In Kaanapali, the average price has fallen by $800,000 to $1.4 million and in Kapalua by $2.9 million to $2.1 million.



Since there are so few sales, a few can swing the averages a lot; but the pricier the neighborhood, the greater the percentage drop: Maui Meadows is down 61 percent to $675,000; Wailea-Makena is down 21 percent to $2.7 million; and Kula-Ulupalakua-Kanaio is down 58 percent to $636,667.



Maui Meadows was noticeable as the slowest sales area: There were seven transactions in five months there last year, only one so far this year.



For condos, with the exception of Kaanapali, sales and prices are down everywhere. Although the overall fall in prices was bigger than for single-family homes, the pain was spread more evenly across communities.



Kaanapali stood out with more sales (39 compared with 26 last year) at higher prices ($1.3 million compared with $1.2 million).



One-third of all condo sales occur in Kihei, but the market there shrank from 178 closings last year to 80 this year. Prices dropped 22 percent to $411,728.



The total value of transactions for residential real estate shrank from $806 million to $316 million for the first five months of each year.

Labels: Kihei, Lahaina, Makena Real Estate, Maui Meadows, Wailea