NEWSLETTER XIV

5/4/01

Another newsletter long over due?  Not really.  Since there hasn't been any dramatic change in the Maui real estate market until recently.

As I've mentioned before I keep my eye on the Northern and Southern California real estate markets, and what ever direction they move, we experience the effects shortly thereafter.

I received an email from a client/friend who has a real estate company in the Silicon Valley area.  He wrote that sellers are no longer receiving multiple offers on their homes, and although it's not yet a buyer's market, it appears to be heading in that direction.

This is of course the result of the Feds, raising interest rates.  It appears that they over shot their mark, and the results were predictable.  If you are over the age of 60, you may be aware that we have been down that path before.  Here on Maui, I have experienced the 1971, 1981 and 1991 recessions so it's no surprise to me that we would feel the effects of the tightening money supply.

However, not all is negative.  Hawaii, and Maui in particular is still a very desirable and magic place to live, and it is NOT the best kept secret.  Mako and I feel very fortunate that we have lived here for over 33 years and we never take it for granted.

Although a huge number of Internet companies have taken a beating or gone south, there is still a lot of money in this world, and people that have it still want to own a piece of paradise.

The difference between the year 2001 and previous years when we experienced a slow down in the economy or moved into a recession, there were always ocean front properties for sale.

As for the west side of Maui, from Lahaina to Kapalua, there are currently only two oceanfront homes for sale.  One, a tear down is listed for $2, 795,000 and the other at $4,900,000.  There's also a parcel of land, on a point in the Kahana area, which is listed for $6,950,000.

The inventory of FEE SIMPLE condominiums is also very low and unless we move into what is truly a recession, prices for properties will remain fairly firm.

For more information, please do not hesitate to call me at (800 416-1474) or email me at landnmaui@aol.com for more information.

Aloha,

Cliff Mc Queen (RA), President
Galaxy Inc. dba Maui Isle Realty

Copyright© 2001 Cliff McQueen