Gary's Blog

Monday, June 28, 2010

Maui's Real Estate Market is Showing Great Strength!

I just had a $5 million ocean front buyer come into my office, and scheduled showings a few days out. In that three day wait, the only two Kihei under-$5 million beachfront homes went under contract! Makena just saw two big sales close. One for $17.5 million, one for an all-time Maui high of $19.85 million. A half-built home, sold by the investor at One Pala'uea, a $3.9 million listing, just went under contract. Wailea Kialoa just saw a closing of $2.975 million. Papali closed a $2.6 million sale, with another in escrow. Even Wailea Kai is seeing strong sales prices, with a recent $1,699,000 closing. South Maui is on fire!

The local developers must agree. Ho'ole'a, a new Stanford Carr Development project, was just launched last Saturday in Wailuku. Other projects in Wailuku are selling out, and the developers see that.

Canadian buyers are very bullish on Maui. They are coming here with a strong dollar, and relatively low prices - what a great combination. I can tell you that as conservative as Canadians are, the fact that they are buying here speaks volumes!

It is not just my observation, but statistics back what I am saying. The Hawaii Tourism Authority reports that international tourists in Hawaii spent 7.3% more through the month of April than in the same period in 2009. International arrivals were also up, by 5%, in April, reaffirming the fact the Hawaii is the dream vacation destination of the world!

Another encouraging article just published by the Associated Press is the increased company spending across America. "Corporate investment is not only growing, but accelerating". Business spending was up 2.1% in May, the second month of growth.

This type of growth is typical after a recession. Businesses were holding their wallets close to their vest for so long, finally they have to cut loose, increase spending, especially in computers and networking equipment. New orders in that area rose 2.5% in May.

Another interesting statistic is the decline of the unemployment rate in 37 states last month. Only six states across America had increases, seven had no change.

Maui's unemployment rate, and the State of Hawaii's unemployment rate both dropped. Hawaii is doing great, with only 6.6% unemployment, and Maui's rate dropped from 8.7% to 8.2% in May.

Add to all these signs low mortgage rates. The lowest since the 50's! Down to 4.69% this week, this is actually the lowest rate since Freddie Mac started keeping records in 1971!

The statistics are pointing toward more growth coming up. For that reason, I am putting my money where my mouth is. Personally, I am fully invested in Maui real estate. Also, I am stepping up my marketing, both on line and off, to capture those buyers coming to our market. If you want to be one of those, don't hesitate, call me now for my Best Buys list!

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