Only The Waves Are Crashing...

...the Maui real estate market is not! 

The outlook for the market, which accounts for about 10 percent of the total residential sales in Hawaii, but 30 percent of the total dollar volume, remains strong despite less volume in sales.  Most of the slowing has been seen in properties priced below $2 million while activity in the high end market remains robust.  High end sales have the best opportunity of going forward in the short term.  There is good demand in high end real estate. 

These are exciting times unique to places such as Maui.  These are some of the reasons to expect continued growth in the Maui real estate market. 

• Demand for Maui real estate is driven by baby boomer buyers in their 40s and 50s, have children, and have made enormous amounts of money.  These folks have made their money, are diversyfing their financial portfolios to include vacation homes that not only offer personal enjoyment for family, friends and business relationship, but it also offers a safe vehicle for investment and asset appreciation as well as many tax saving advantages. 
• The newest driving force to hit Maui is the value of the U.S. dollar against foreign currancy making Maui look like a real bargain for a tropical island paradise free of pollution, but offering all the Constitutional protections America offers land owners.  Canadians are the biggest players as it relates to value stemming from the increased benefits of the currency exchange rates.
• The up and coming driving force just beginning to find its way to Maui are the Chinese and Korean wealth.  Wealth creation, as well as the ability to travel and buy foreign land, has just begun to open the doors to invest for these cultures.  Thus safe, clean tropical Maui offers value and proximity yet a stable political enviroment. 

According to Luke Mashburn of the Maryl Group,  "We feel very positive about the resort home market in Hawaii...we still have better weather for more months than any other destination, and the baby boomers are just beginning to retire and that will continue to fuel the growth." 

When considering the real estate market, remember the media coverage of home sales is based on generalized national statistics.  Many of the national areas being hit hard are suburbs, not all resort destinations are feeling the same effects.  It is important to evaluate the market by region, cities and more specifically neighborhoods.  What is happening in one area of the country is not necessarily taking place in all areas. 

Common sense will tell you the historical real estate trends are different, and what is different is the disposable income of wealthy baby boomers who are just beginning to enter retirement.  The volume of those entering retirement with trillions in disposable income has never been seen in the history of the real estate market.  The second prong indicating trends differ is the global market.  Falling interest rates to revitalize the national real estate market should have very positive affects on the Maui real estate market in the year to come.  However, due to the subprime crisis of 2007-2008, lenders will be applying much more scrutiny when applying for a loan.  

As I have always said, Maui is where the wealthy baby boomers want to be because of climate, beaches and amenities.  It is the very reason I chose this island when I moved to Hawaii.  It offered the perfect blend of old Hawaii without forfeiting the mainland amenities.  Whether for full time useage or simply a vacation retreat, Maui consistently offers  beautiful sunny weather, white sandy beaches, turquoise waters, 10,000 foot mountains , every activity imaginable and the spirit of aloha among the  beautiful people of Maui.  

Please contact me if you have any questions regarding Maui real estate.