Gary's Blog

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

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

Here are the top 10 states and their average well-being scores (out of a possible 100 points):
Utah: 69.2
Hawaii: 68.2
Wyoming: 68
Colorado: 67.3
Minnesota: 67.3
Maryland: 67.1
Washington: 67.1
Massachusetts: 67
California: 67
Arizona: 66.8

To read the whole article, click:
http://www.msnbc.msn.com/id/33830268/ns/health-mental_health/?GT1=43001

Labels: Hawaii real estate, Makena, Maui Meadows, maui realtor, property in Maui, South 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

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

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

Sales of previously occupied homes rose for the third month in a row in June, the National Association of Realtors reported. That hasn't happened since early 2004, during the boom. "The turnaround in the housing market appears finally to be here and indeed may be gaining some speed," wrote Joel Naroff, president of Naroff Economic Advisors Inc.

Stocks jumped on the news, with the Dow Jones industrial average rising above 9,000 for the first time since early January.

Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales were up in all four regions of the country. It was the highest level of sales since last October and beat economists' expectations. Sales had been expected to rise to an annual pace of 4.84 million units, according to Thomson Reuters.

In another encouraging sign, the share of foreclosures on the market is shrinking. About one out of three homes sold in June wasforeclosure-related, down from nearly half earlier this year.And the glut of homes up for sale dwindled to 3.8 million. That's a 9.4-month supply at the current sales pace and another important sign of a recovery. A bit better than the 24-month supply we were seeing not long ago!

One last exciting statistic: prices have risen for three straight months in about half of the 55 major metropolitan areas tracked by the Associated Press-Re/Max Housing Report, also released Thursday.

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

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

Check out my hot picks on the home page. The newly constructed home at 111 Ponana Street is gorgeous with incredibly beautiful ocean and Haleakala views. We just reduced the price by $200,ooo! The seller is now very realistic at $1,295,000. Just one block north of Wailea, and walking distance to Keawakapu Beach, one of the best beaches in the world, you can't beat this location. If you shop in Wailea or Makena for a comparable home and view, you will have to pay upwards of double this price. Don't miss this unique opportunity. You may never see a price like this for a property of this quality again!

Labels: Keawakapu, Makena, Maui Meadows, South Kihei, South Maui, Wailea