September Sales Statistics

The trend continues, with sales volume increasing, and prices remaining somewhat stable, or declining slightly.  According to recent expert reports and anecdotal evidence from realtors, escrow agents, and lenders, there is significant increase in buying interest and activity.  With prices remaining stable and volume increasing, we could be looking at the bottom of this downturn.  There are certainly some great deals to be had out there and once the REO and short sale properties begin to be absorbed, we should see a return to our more normalized marketplace.  For the complete Realtor Association of Maui report, please click here.

Both residential and condo sales numbers showed a decrease after four continuous months of rising numbers.  Median prices remained stable from June to July for residential and slipped slightly for condo sales.  Year to date, we continue to see the previous trends of increased number of units sold, with some drop in median sales prices.  The drop in number of sales in July is believed to be a result of the end of the homebuyer tax credit.  Low interest rate continue, though and it is thought that this will help to bring continued sales in this depressed market.  The prices have become really good on Maui and it appears that we may be nearing the bottom.  REO and short sale properties continue to hold the market back from swinging in the up direction, but as these are absorbed by the marketplace, we will be able to return to a more normal  marketplace.  For the complete report, please click here.

Don´t wait, buy now.  That was the take home message from economist Paul Brewbaker´s annual address to the Realtor´s Association of Maui on July 16.  Brewbaker suggested that it seems that prices, while maybe not having hit the very rock bottom, are so close to the bottom that it is  not worth trying to wait out the market for minimal savings if there is any future drop.  Brewbaker put a very positive light on the economy and housing market here on Maui.  The main concerns are that joblessness continues in Hawaii and foreclosures and other distressed properties seem to be increasing.  These issues were both addressed. 

As Brewbaker explains, companies begin hiring at the end of a recession, it is one of the last things to turn.  We also have fairly low unemployment, with only 5.5% on Oahu (a level that is considered full employment on the Mainland).  While outer islands do seem to be lagging, Brewbaker explained that these figures must be taken as simple snapshots and put into the larger context of time, and when that is done, the numbers are not bad. 

As for distressed properties and high levels of inventory, Brewbaker says that many of the foreclosures and short sales are lagging simply because of back logs created by the distance that Maui is located from the banks and agencies processing the foreclosures.  On the mainland many of the the foreclosures are being absorbed into the market much more quickly than on Maui, do to the fact that paperwork can be accomplished faster. 

From all appearances we have reached or are just about to reach the bottom of this market, and the time is perfect for any one looking for bargains.  With interest rates staying at low levels and markets turning all around the country, it is just a matter of time for the Maui marketplace to absorb the distressed properties and see the inevitable turn in an upward direction.

For more information, please follow the links below:

Full Video of the Presentation

PDF Handout

Maui News Article

According to a recent article in the Honolulu Star Advertiser, foreclosure filings shot up a drastic 70%.  This comes as some of the hardest hit markets on the mailand are seeing foreclosure rates declining.  This information is congruent with what we are seeing here in person.  Foreclosures are on the rise and we have not seen the peak of the foreclosures here in Maui.  For the most part, foreclosures are still on the rise, with 75% of the foreclosure markets seeing increases.  The decrease in foreclosures in some areas is due to local economic factors, like increased employment.  It appears that more foreclosures are going to be hitting the market over the several months and the buying is just going to get better.  For the complete article, please click here.

 April Visitor Statistics

May 30, 2010

The good news continues with the release of the Hawaii Tourism Authority´s report on April visitor statistics.  Again, here on Maui we saw increases across the board.  Arrivals and total visitor days both rose on Maui, up about 3% from last year, total expenditures increased 8.9% over last year and spending per person per day increased 6%.  Year to date statistics show increased arrivals, increased visitor days and increased visitor spending over last year.  This fits with the pattern we have been seeing and indicates a turn out of the bottom of the market.  Similar to the real estate market, the tourism industry continues to have lower prices (room rates) and increasing activity.  For the complete report for the Hawaii Tourism Authority, please click here.

Maui led the economic recovery with an increase in visitor arrivals from Canada (20.1% increase) and US West (9.5% increase).  The increase in arrivals and visitor days drove occupancy up 8.5% on Maui to an average of 72.5%.  At the same time, Maui had the largest decline in daily room rates, falling to $232.10.  Maui´s visitor spending was up 25.2% over March of last year to $257.7 million, and spending per person per day was up 9.4% to $175.20.  Increases were seen across the state of Hawaii, and the latest numbers seem to indicate a turn out of last years economic slow down.  While we are not out of the woods yet, increases in occupancy, visitor arrivals and overall visitor spending seems to indicate that people are more confident in the economic recovery and willing to travel to Maui and other islands more than last year.  The decrease in average room rates combined with the increase in occupancy is similar to what we are seeing in the real estate market, with increased sales activity but a decrease in prices.  Please click to view the complete Guam and Hawaii Tourism Report.

According to Hospitality Advisors, Maui's occupancy rate rose to 72.5 percent for the first quarter of 2010, up from 64 percent in 2009.  This is a good indication, as this is the second year that occupancy rates have risen.  Statewide, occupancy increased from 66.7 percent in 2009 to 70.8 percent this year.  While this is a good indication of a recovering economy, other factors indicate that we should be cautious in our optimism.  For example, occupancy may be up, but average room rate are down to $232 on Maui, a decrease of about $30 from last year.  These room rates do not include hidden discounting (like including free breakfast or other inclusions).  These statistics from the hospitality industry are very similar to what we are seeing in the real estate market.  Activity is increasing over the past years, but prices are still discounted deeply.  It seems that more people are able and wanting to take advantage of the all around discounts in Maui and are beginning to come back to the market place.  For the complete Maui News article, please click here.

2010 State of Real Estate Archive Videos
May 17, 2010

Some great video archives from the State of Hawaii Real Estate convention, that took place on Oahu February 18, 2010 have been added to the web.  Insight into the Hawaiian Real Estate Market is provided by Paul Brewbaker, Dr. Michael Sklarz, and Bill S. Chee.  There is also a great questions and answer segment.  Please visit the site here, and take some time to understand the expert opinions on the Hawaiian Real Estate Market.

April 2010 Sales Statistics
May 12, 2010

For the complete report from Realtor Association of Maui, please click here.

The proposed development of Honua´ula (formerly called Wailea 670), is moving forward.   The proposed $1.2 billion development would consist of 1,400 homes and apartments, and 18-hole golf course, commercial space and parks and trails.  Recently, the development group made public their draft environmental impact statement (EIS).  The deadline for comments on the draft EIS is June 7, 2010.

It has been about two years since the Maui County Council approved the rezoning of the land for the development and in that time development on Maui has come to a sudden halt do to the economy and housing bubble burst.  According to the development plan, once final approval is received it will take 13 years to complete the project.  In that time they plan to provide 9,357 "worker years" (one year is calculated as 2,080 hours of a normal full time worker over one year).  After the project is completed, a total of 518 jobs are proposed to maintain the facilities, parks, and retail establishments.  It is believed that they will receive approval and have the first homes completed within the next two years.

Some criticism of the draft EIS has been voiced.  Concerns include the thoroughness of the EIS, plans for destroying natural habitat to develop the land and the distance between spaces set aside for the preservation of native species.

To view the complete article from The Maui News, please click here.

 Makena Beach Plan: Maui Residents Voice Your Opinion!
May 11, 2010

Recently there has been some controversy over a proposed plan from the Hawaii State Department of Land and Natural Resources (DLNR) to begin charging admission for visitors to some of the state parks.  On Maui, the proposal included I´ao State Park and Makena Beach Park, also known as Big Beach and Little Beach.  The proposed "Recreational Renaissance" plan would implement a $1 entry fee and a $5 parking fee at each of the parks in order to raise money for capital improvement.

At a recent Kihei Community Association meeting, this subject was addressed and clarified.  While the DLNR had proposed the "Recreational Renaissance" plan, the Hawaii State Legislature did not approve or support this plan for charging fees at two state parks on each of the major islands.  The DLNR the developed their "Back to Basics" plan, which would seek to raise a smaller amount of money through parking fees at the eight parks, and through increased harbor fees.  But there are issues with this as well.  The economics have not been analyzed, for example, we do not know the number of people who enter Makena State Park, and therefore we do not know if the parking fees would even cover the cost of collecting the fees.  Other issues include the many ways to enter the park, which would make collecting fees and monitoring activity much more difficult.

Save Makena (www.savemakena.org) and the Kihei Community Association (www.gokihei.org) have invited the public to complete a survey on a wide variety of issues surrounding Makena, experiences at the park, and concerns with any development or plans for the park by visitng either site.

For the complete article from Maui Weekly, please click here.

March Visitor Statistic
May 4, 2010

The Hawaii Tourism Authority released statistics for March tourism recently and it was good news across the board with most islands showing increased numbers.  Maui´s numbers increased the most with a 14.5% increase in total visitor days and a 25.2% increase in total spending over March of 2009.  Other islands saw smaller, but still significant, increases in total arrivals, total visitor days, and visitor expenditures, with only Molokai showing a decrease.  Maui is thought to have been helped by recent additions to flights, with direct flights having been added in March 2010 from Edmonton, Calgary, Orange County, Los Angeles, San Jose and Sacramento.

Regardless of the reasons, we here on Maui were very happy to see the increase as it continues to support the argument that we may be seeing the bottom of the market.  With increased visitor numbers and increased visitor spending, the local economy can get itself back on track and local spending can increased, including home and condo purchases.  Combined with the real estate numbers which indicate increased sales with stabilizing prices, it seems that we may be near the bottom of the market.

For the complete article from the Hawaii Tourism Authority, please click here.

 Maui Foreclosures Near Record Highs
April 29, 2010

According to a recent article in the Honolulu Advertiser, Maui County had a total of 217 new foreclosure filings last month alone, making it the third highest month on record.  Kihei was hit hardest with 74 filings for March, with Lahaina and Wailuku following with 58 and 32 filings respectively.  This comes despite the news of the economy seeming to be turning.  Visitor numbers are up for the last several months and visitor spending is also up.  Sales seem to be picking up as well, but prices continue to remain stable and the increased foreclosures on the market will not help to bring prices up.  According to some, prices may remain stable, but until these new foreclosures and other distressed properties (i.e. Short Sales) are absorbed by the market, we will not be able to return to "normal" market conditions.  For the complete article, please click here.

March 2010 Sales Statistics
April 19, 2010

The increase in activity continues with Homes sales rising for the second month in a row with 70 homes sold.  Condo sales hit a 46-month high with 122 sold for the month.  While the number of sold properties was up, the median sales prices did decline for homes to $460,000, but condo's median price rose to $512,250.  This month's condo sales statistics were boosted significantly by the closing of 41 new units at Honua Kai.  With this factored in, we see the general trend continuing.  We are certainly bouncing along with prices remaining similar and increased activity.  People are beginning to see the value that this downturn has created and many distressed properties (short sales and REO's) are moving quickly because they offer the greatest value.  These distressed properties will provide great values until the bulk is absorbed as sales.  For more information and the complete report, please click here.

February 2010 Sales Statistics
March 12, 2010

Could This be the Bottom?
March 10, 2010