Gary's Blog

Wednesday, August 17, 2011

Maui, Wailea Real Estate Hot!

Maui Real Estate Still Hot!

Keawakapu Beach, a beautiful South Kihei home on the beach, has a $16.5 million home in escrow. Makena Place, also beachfront in Makena, has had a good month too- one closed for $6,131,000, and another- listed at $8,250,000 - is in escrow. The Wailea Highlands has one home listed at $3,780,000 in escrow. Then go over to the high-priced Napili and Kapalua side, and you'll find 20 homes either in escrow or closed in the past 30 days! The people buying these properties are most often cash buyers. Where better to put your money these days? Treasuries at under 2%? Stock market with the wild gyrations? Gold at almost $2000 per ounce? It seems the rich and famous are putting their money in the safest investment on the planet- real estate.

Then go to the low-end side of the market. Kihei condos, such as Kihei Villages, has 530 units in North Kihei, across from Sugar Beach. These units were selling over 350k, now under 140k. Seven active listings, ten in escrow, and 24 closed in the past six months. That is less than two months' inventory! If you are in the single-digits on absorption, you are in a seller's market. The low-end has turned, it is now a seller's market, and prices are rising fast.

The middle market is seeing good activity as well. Just a quick for instance, here in Maui Meadows. There are over 600 homes, 24 active listings. Eight homes are in escrow, and ten sales have closed in the past six months. Again, less than six months' inventory.

Don't miss this bottom. We may never see these prices again in our lifetimes!

Economic Statistics Encouraging

Maui real estate seems to be responding to the volatile stock market, and the positive news gives us the confidence to know real estate is the place to be.

For example, industrial production rose 0.9%, the largest gain this year.

Also, employers added more than twice the number of jobs in July than in the previous two months.

It is also encouraging to know that housing starts are the lowest in 40 years. What do you think that will do to prices while demand returns, but the supply doesn't? Economics 101.

Business are leaner and, even more important, in a stronger financial position than they were three years ago. The companies in the S & P 500 now have nearly $1 trillion in cash, up from $648 billion in September 2008.

AP sources say Las Vegas Strip was still bustling last weekend, hotels are near capacity through the end of August. Lines are still long at Walt Disney's parks, Bloomingdales is reporting brisk sales. Coach net income is up 4%. Shoppers are not staying out of the high-end shops!

Bankruptcy filings continue to drop- filings fell in all counties across the state of Hawaii. There was a 38% drop on the Big Island, 22% drop on Oahu, 14% drop on Kauai, and a 13% drop in Maui.

The auto industry is on a hiring spree- VW opened a plant last month in Tennessee with 2000 workers. Honda is hiring 1000 in Indiana. GM is looking for 2500 in Detroit. And that is after a 12% increase in auto employment since June of last year.

U.S. consumer confidence is up in July, from June, according to a private research group.


Hawaii Foreclosure Filings Fall 58%
RealtyTrac released a report last week that 390 foreclosures were filed in Hawaii in July, compared to 930 filings a year earlier. There were 344 filings in June, the lowest for any month since January 2009.

If you are looking for Maui real estate, be it Wailea real estate, Wailea condos, Wailea homes, Kihei Condos, kihei homes for sale, kihei real estate, or just a Maui Real Estate Agent, please call me. Wailea Beach Villas are hot, with a super value in a top floor foreclosure. The number of Wailea condos for sale is shrinking, so act now, while the selection is good!

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