Gary's Blog

The best showing in more than three years in August!

Also,the Dow Industrial Average hit a record yesterday, again.

Good times ahead!

Labels: beach front real estate, Hawaii real estate, Keawakapu, Makena, Maui Meadows, maui realtor, Wailea

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

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

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

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