Gary's Blog

Saturday, May 19, 2012

Maui Real Estate Stats Encouraging

Maui REOs and Short Sales Decrease in All Types

Please e-mail me for a current list of all REOs (real estate owned by banks) and short sales in the County of Maui. This includes real estate on the three islands of Maui County- Maui, Molokai, and Lanai. The numbers have been consistently dropping as buyers absorb these bargains.

REO numbers dropped since my lastblog (about three weeks ago) from 63 active listings to 45, a 28% decline! New REO listings in the past 30 days dropped from 15 last month, to 12 this month. SFR (single family residence) REOs dropped from 24 listings to 20. And condo REO listings dropped from 20 to 14.

Short sale numbers dropped almost as dramatically. Last month there were 111 active short sale listings on the mls. Today there are 97. New short sale listings dropped from 20 last month to 17 this month, SFR short sales went from 54 active listings last month to 45 today, and condo short sale listings went from 50 to 46.

The writing is on the wall. Economics 101: supply vs. demand. Supply is shrinking, demand is growing. What do you think that will do to prices?

Bank of America Offering Up to $30,000 Incentive to Short Sale Sellers

Bank of America is offering some struggling homeowners payments of up to $30,000 if they sell their homes in a short sale and avoid ending up in foreclosure.

Under the plan, Bank of America will offer homeowners so-called relocation payments of between $2,500 and $30,000 if they sell their home in a short sale. In short sale deals, the sale price of the home is less than what the seller owes the bank.

Chase started a similar initiative in late 2010 that pays as much as $35,000 to short sellers. Wells Fargo has also paid five-figure incentives to short sellers.

Please contact me for the complete article, or to discuss short selling your property. I am a certified short sale and foreclosure specialist, and have closed dozens of these types of sales over the past two years. I can help you too.

30-year mortgage Hits Record Low

Mortgage buyer Freddie Mac said last Thursday that the rate on the 30-year loan fell to 3.83%, the lowest since long-term mortgages began in the 1950's.

The 15-year mortgage dropped to 3.05%, also a record.

U.S. mortgage giant Fannie Mae reported is first net income gain since it was taken over by the government during the 2008 financial crisis.

Fannie said Wednesday that it earned net income of $2.7 billion in the January-March quarter. The company will pay a dividend of $2.8 billion to the Treasury Department. That compares to one year ago when Fannie reported a net loss of $6.5 billion.

Fannie has received about $116 billion so far from the Treasury Department, the most expensive bailout of a single company. So far, Fannie has repaid about $23 billion of that bailout.

Home Construction Near 3-Year High

The data released Wednesday suggest growth in the April-June quarter is off to a good start, helped by falling gas prices and solid hiring gains. The Labor Department said Tuesday that employers advertised 3.74 million job openings in March. That's up from a revised 3.57 million in February and the most since July 2008, just before the financial crisis erupted.

Builders broke ground in April at a seasonally adjusted annual pace of 717,000 homes, the Commerce Department said. That nearly matches January's pace, the best since October 2008.

Factory output also rebounded in April, now 18.3% higher than its low hit in June 2009, the month the recession ended. It's only 6.1% below its pre-recession peak.

Maui County Recovery Going Strong

Maui County led the state in making gains toward economic recovery in 2011, and according to the University of Hawaii Economic Research Organization, the "recovery is far from complete".

In Maui County, the volume of visitors - as measured by visitor days - has grown to within four percentage points of the peak in 2006. The university economists forecast a 4.8% increase in visitor arrivals to Maui this year.

Maui's hotel occupancy rates are predicted to grow from 68.1% in 2010 and 70.3% in 2011 to just under 75% this year, and somewhat higher in 2013 and 2014.

The university economists said Maui's labor market was "the standout among counties last year..." Maui added 2.1% to its job base, more than double the statewide average of 0.9% growth. The economists predict overall job growth of 2.1% this year, rising to 2.5% in 2013 and 2014.

Commercial construction permits in Maui County rose 60% in 2011. Maui County was the only county in the state that saw an increase in private construction permits awarded last year, the economists noted.

Separately, the state's Department of Business and Economic Development said in a report earlier this month that Hawaii's economy should expand 2.2% this year. Next year, it forecasts Hawaii's economy will grow 2.3%.

Eugene Tian, chief state economist, said the economy is moving out of a recovery stage and into a growth period. He said the recovery is led by tourism, with a record-high 7.7 million visitors projected to visit Hawaii this year. This would beat the previous record of 7.6 million in 2007.

Tian said the numbers will continue to increase, noting that airlines are increasing seats on Hawaii-bound flights 8% this year.

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