Newsletter XV

10/4/01

In my previous Newsletter I stated "there hasn't been any dramatic change in the REAL ESTATE MARKET until recently." If you did not read the previous Newsletter, you might consider doing so.

On September 11th, my wife Mako woke me up very early, to tell me that the United States was under attack. I turned on the television to view the chilling events unfolding. To me, it was like a rerun of Pearl Harbor in 1941, only far more frightening, because in 1941 we only had the radio for our news.

For two weeks now, I have really not been interested in thinking about real estate, and I did not have the stomach to attend our weekly brokers meeting or do anything pleasurable.

Here it is approximately 3 weeks later, and I am attempting to get back on track by writing this Newsletter as it relates to Real Estate.

In 1990 I had already realized that we were heading for a slow down, or at least I saw the signs, but then the Gulf War started in January 1991, and it was the coup de grace, for real estate sales as the business came virtually to a stop.

Fast forward to September 11th and I wondered if it would be a rerun of the start of the Gulf War? Yes, tourism was immediately down, and then lay offs at our major hotels, and along with it the small businesses were hit hard.

There were a number of escrows where buyers have backed out of their transactions for various reasons. In my opinion we have gone from a Sellers Market to a Buyers Market almost over night. I had told a number of younger Real Estate Agents, that we should have a better indication where we are heading in approximately 30 days, and by holiday time, we will know for sure what will happen to Real Estate here on Maui.

As I have mentioned several times before, I look to California for our lead or direction, as to where we will be heading next in our market.

After living here on Maui for 33 years, I have a pretty good barometer for things to come, and I hope I am wrong in what I have predicted this time around.

On the positive side of the equation, I believe that many of the people that I have met at Open House over the last 10 years, who had told me that they wanted to move here in the coming years, or when they retired, may now seriously think about accelerating their move to Maui.

We do have fantastic weather and beauty, and we are a relatively safe place to live. I never even give a second thought about walking down an alley at night, when leaving a restaurant to pick up our car, or watching my backside so to speak.

Already my client/friends are coming back to Maui and even though they have owned property here for a number of years, they can breath a sigh of relief and they tell me that they have a renewed appreciation for Maui. The events that happened on September 11th have made it even more special.

As to Real Estate, ocean front homes and land are still almost non-existent. The $2,795,000 home I reported previously is now in escrow, and there are still two homes on the ocean listed in the $5,000,000 range.

All of the 2 to 3 acre ocean front lots in Olowalu are in escrow, subject to the final approval by the County. There is still a lot of money in this world, and for those individuals that want a piece of paradise; they have no qualms about paying the price.
 
The 5-acre parcels on the mountain above Puamana are all sold and in escrow, and so far, no fallouts. There are still a few lots available at the Pinnacle above Kaanapali.

As to homes in the Kaanapali area, almost every one of them has lowered their prices. Three of my homes have been lowered by $100,000.00 each. 

For those homeowners that wanted to take advantage of the Seller's market a couple years ago, when Silicon Valley was hot, where they listed their homes sky high, they have either had to lower their prices or have taken them off of the market entirely.

I will attempt to update this Newsletter during the holidays, when I will have a better indication where the market is heading.

Right now it is 4:30 AM, and I am looking out the large picture window over my desk, which is located on the third floor of our home on the mountains above Napili, and I am watching a beautiful pink sunrise through the forest of pine trees.

You would probably laugh if you saw me in my heavy terrycloth bathrobe, to hold off the chill of the early morning, with the temperature at a wind (trades) chill of 70 degrees. We have neither heating nor air conditioning in our home, but only ceiling fans.

As the saying goes 'LUCKY WE LIVE HAWAII" or should I say "MAUI".

ALOHA

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

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

Copyright© 2001 Cliff McQueen