This month, we’re talking predictions. Many agents across the country are saying they are seeing their markets softening. This often happens before a presidential election due to uncertainty. Economists have shared some concern about the economy. While sales are strong across most of Maui, our prices have shown some declines, especially in vacation home markets.
The U.S. Market – June 2016
I turn to NAR – The National Association of Realtors and Keeping Current Matters for national data and their projections.
Recently, Freddie Mac analysts said, “We expect housing to be an engine of growth. Construction activity will pick up as we enter the spring and summer month, and rising home values will bolster consumers and help support renewed confidence in the remaining months of this year.” And Warren Buffet said, “I don’t see a nationwide bubble in real estate right now at all.”
Recent Gallup polls explored confidence in real estate investments by gender and age and it seems most Americans think real estate is the best investment.
Vacation home sales in 2015 were down from 2014 but are still the second highest since 2006. It is no surprise that 40% of vacation homes are in beach areas.
Mortgage and Financing Trends
Mortgage rates continue to be at very low rates and again analysts predict that will change in the next few years. They’ve predicted that for 3 years now but it is bound to happen soon! There is money to lend and lenders are still conservative. But many people are surprised by what they can qualify for. If you are considering upgrading, now is a very good time!
The Maui Market Trends – June 2016
I’m not seeing any significant changes in looking at major areas. This does not mean that there isn’t a change in a specific market. For example, I have a client with a lovely oceanview, 2 bedroom, 2 bath vacation-rentable condo in South Kihei. By all Maui standards it is a spacious 1214 sq. ft. So I looked at South Kihei vacation rental condos over 1000 square feet and found that average and median prices have declined 20% in the last year. That is pretty significant. So markets can be very local.
That said, I think overall the Maui market is going to gradually grow. The vacation rental areas popular with Canadians will be slow until their dollar comes up a little. We still have a huge shortage of affordable housing in Maui. They are calling an investor/landlord summit to try to address this shortage before they lose HUD funding. Yes, we have a lot of new developments, many with an affordable component but these are not HUD homes or HUD rentals.
If you are interested in finding out more about the new developments or you’d like to participate in the investor/landlord summit, contact me at 808-344-0469.
Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.
View the Detailed Maui Real Estate Market Reports
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