Gary's Blog

Tuesday, April 6, 2010

More Good Economic News

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!

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