Conditions provide an opportunity for those with good credit to negotiate a favorable transactionWith attention focused on revised estimates for growth in Hawai‘i, it may be time to look at the underlying strengths of our housing market and the opportunities that exist for buyers and sellers.
Prices are moderating and stabilizing, inventory is good, interest rates are currently at historically low levels and conditions provide an opportunity for those with good credit to negotiate a favorable transaction.
As the economy continues to work through credit concerns that began last year, experts report that the Federal Reserve may be planning to reverse its policy of rate cuts and increase interest rates to protect the economy against inflationary pressures. This is another important reason to visit your professional mortgage broker and learn what rates might be available for you to buy now.
Real estate is cyclical. Maui’s history is to work through slower periods and rebound with stronger prices and excellent quality inventory on the market.
For example, Palm’s units in Wailea were selling for $275,000 a decade ago, and even in today’s market, the properties are easily selling for $900,000. Expectations are that they will increase in value as the market fully recovers, which has been the pattern in Maui’s real estate market.
Maui remands an international destination with the attractions of location, beauty and safety. Canadians and Europeans have entered the market in greater numbers, due to their strong currencies that enable them to buy in the U.S. on attractive terms.
According to the Realtors Association of Maui while single-family home sales in 2008 have declined when compared to the first five months of 2007, condo sales have increased by 8 percent over the same period last year, with the median price going from $530,000 to $575,000. In fact, the total condo sales dollar volume has increased by 11 percent in 2008 over the first five months of 2007.
Buying and selling opportunities are increasing, and now is an excellent time to make sure your credit is secure. Visit your professional mortgage broker to see if you are pre-qualified for a loan and learn what you can afford to purchase.
Premiere Mortgage has offices on Maui and Kaua‘i and provides a wide range of services to the real estate community. Tricia Morris may be reached on Maui, in Kihei, at 874-8800, Wailea, at 891-8900, West Maui at 665-8800, on Kaua‘i at (808) 822-2300, or toll-free at (800) 813-7711.