Aloha & Good Morning!
Today's forecast for Maui will be sunny with
highs around 85 degrees!
It is hard to believe that our
economic situation was so tough just 18 months ago, because it sure has
changed. If you recall, 18 months ago the real estate market was moving
slowly, the unemployment rate was worrisome, and a third of real estate sales
involved either short sales or the resale of foreclosed homes. We were
wondering if the great recession would ever end.
Today Hawaii boasts the 3rd lowest
unemployment rate in the Nation at 4.3%, topped only by North and South Dakota
which are experiencing an oil boom. Yes, Hawaii is #3 and that is fantastic
and incredible news to share. Nationwide our unemployment rate is at a 6-year
low, key economic indicators like auto sales are at a 6-year high, and
nationwide we are experiencing the highest existing home sales since 2007.
Just 3 years ago
- 35% of real estate sales Jan-Sept on Maui were distressed properties, either short sales or sales of bank-owned REO properties.
- In 2012 the number of distressed properties was 27%
- Today the percentage of distressed properties is down to 13%.
- Overall sales for the same time period of Jan-Sept. are up by 14.5% last year to this year.
- Median Prices of homes sold are up 16% to a median price for a single family home on Maui of $539,444 and a condo of $377,200.
Again we're ahead of the national
average, but even nationwide real estate sales are up more than 10%, and prices
are up over 8%.
If you've been following these
weekly newsletters you probably started to see thi change about a year
ago. If this change and growth performs
as it has, then the upswing of the cycle on Maui should last approximately 4-6
years. Every real estate market is different, but Maui's market runs in 10-12
year cycles. That means we're at the beginning of the upswing, and it's a great
time to buy. For sellers this means a great time to sell because there is
little competition. It's a unique situation for many to take advantage of.
The significant upswing in real
estate sales is partly due to the exceptionally low inventory. Again, this is a
nationwide phenomenon, but on Maui we are down over 50% in inventory since
2007. In other words, 6 years ago there were twice as many properties for sale
as there are today. Why is this? Because we have built very little new
inventory over these 6 years and the population keeps growing. Better yet, Maui
keeps growing because people want to be here. We have the highest
quality of life and we are continually
rated the #1 Island. That is why we can
all say Maui is No Ka Oi!
Now is the time in the cycle of the
market that you've been waiting for. The time is now.
Don't forget to get your name in for this
year's exciting iPad giveaway!
New listings have been added to the Windermere Valley Isle Properties YouTube Channel. If you want to keep up-to-date with the newest listings you can follow them by clicking HERE!
Looking for more great articles, videos and advice? Check out the Real Estate Sales Maui Team on FACEBOOK, TWITTER, BLOGGER and PINTEREST
Looking for the current Bank Owned Foreclosures on Maui? Click HERE.
Last
Week In The News
The Mortgage Bankers Association said its seasonally adjusted composite index
of mortgage applications for the week ending September 27 fell 0.4%. Purchase
volume fell 6%. Refinancing applications increased 3%.Manufacturing activity rose to 56.2 in September after a reading of 55.7 in August. A reading above 50 signals expansion. It was the fourth consecutive month of expansion and the strongest reading since April 2011.
Motor vehicle sales fell 5.1% in September to an annualized sales rate of 15.3 million cars and light trucks. Compared to September 2012, motor vehicle sales have increased 3.4%.
Retail sales fell 0.2% for the week ending September 28, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.1%.
Non-manufacturing activity fell to 54.4 in September from 58.6 in August. A reading above 50 signals expansion. It was the 45th straight month of expansion in the services sector.
Initial claims for unemployment benefits for the week ending September 28 rose by 1,000 to 308,000. Continuing claims for the week ending September 21 rose by 104,000 to 2.925 million. The less volatile four-week average of claims for unemployment benefits was 305,000, the lowest level since May 2007.
Upcoming on the economic calendar are reports on international trade on October 8, wholesale trade on October 9 and retail sales on October 11.
Craig Haueisen is a Loan Officer with Prospect Mortgage.
Please feel free to email him or call him for any of your Mortgage needs.
Office: 808-298-7549 or Email: craig.haueisen@prospectmtg.comClick here to visit Craig's website and apply online: http://myprospectmortgage.com/CHaueisen
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