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Newsletter XIAs the song goes "What a difference a day makes" or as applied to Real Estate here in Hawaii "What a difference a year makes". As you may recall, in my previous Newsletters I have stated: "When we recover from our 9 year recession, the market will turn with a vengeance and Real Estate will change from a BUYER'S market to a SELLER'S market overnight." The above statements have come to pass. Do I have a crystal ball? No, it's simply that I was raised in Southern California and observed what happened to Oceanfront properties from Malibu to Newport Beach. When I moved to Hawaii I carried with me the "BLUEPRINT" for the future of Maui.
The Market In 1998 there were 10 homes for sale on the Ocean between Lahaina and Kapalua. Today, there is only one home for sale at $3,900,000, and one new home listed for $17,000,000, located on a point between the Kapalua Bay Hotel and the Bay Villas, on a large plot of land. In my last Newsletter (August 1999), I reported that the inventory of homes on the West Side was down to: 15 homes in the $1,000,000. price range 5 homes in the $700,000. price range 3 homes in the $500,000. price range. NOTE: At that time the inventory of Oceanfront homes was down to only 4 homes listed for sale from Lahaina to Kapalua Today the number of HOME listings are as follows: 6 at $2,000,000 to $3,000,000 range, 6 at $1,000,000 range, 1 at $900,000 range, 2 at $800,000 range, 3 at $700,000 range, 2 at $600,000 range, Note: None are listed in the $500,000. price range or below. As the Real Estate market continues to recover and the inventory sells off, the issue of SUPPLY AND DEMAND becomes evident. For those who think that prices are high now, re-read my NEWSLETTER IV (part II). In my lifetime, in every recovery from a recession, prices have ALWAYS come back higher than the previous highs. This recovery appears to be no different than previous ones. Although I am very aware of what is happening to prices of real estate in Maui, I too can be surprised. Recently I had clients who were willing to spend $1,500,000, for a two bedroom, direct Oceanfront condominium, located in the Kaanapali to Lahaina Area. When I went to my computer to pull up what was for sale, there was NOTHING listed, except the noted lower priced unit listed for $595,000. Since this was my clients only choice they purchased it as a starter residence. If you are reading this in my web site, there are a couple of homes I have listed that you can still purchase for replacement value. Once they have sold there are no more, what I consider "steals". If you wish to have more information, please call us at: 808 669 5377 or 808 661 9942, or send me an e-mail at: landnmaui@aol.com or visit my web site at: http://www.maui-isle-realty.com and I will be happy to answer any of your questions Aloha, Cliff C. McQueen (RA) Copyright© 2000 Cliff McQueen |
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