Last month we told you that ringing sound was the market hitting bottom. Well Paul Brubaker, Chief Economist for the Bank of Hawaii (America's #1 Bank), professor and all around smart guy, says the same thing... almost.
Paul spoke at the Realtors Association of Maui quarterly meeting. His market forecasts over the last several years have been extraordinarily accurate. It's like he's got a crystal ball or something. You can see his entire presentation at http://yourwebcast.com/ram/brewbaker09.htm. If you can't open it, send me an email and we'll figure it out.
The short version is that the single family home market has hit bottom in Maui. Paul believes that condo prices are still headed south. In either case, he is urging buyers, "if you have the money, now is the time to buy.
Just a few details before you get the rest of the report. Inventories seem to have stopped rising. The "days on market" are comparatively short. The properties that are selling are moving pretty quickly.
We are seeing bidding competition at the low end of the market. Some REO's (bank owned properties) are selling for more than asking price. On the other hand, we are seeing some HUGE price reductions on properties at the top of the market.
Want details? We have details in the Maui Real Estate Advisor.
Aloha Lee Potts
The local news is painting a dire picture of real estate and the economy on Maui. One story said that real estate sales were DREADFUL, http://www.mauinews.com/page/content.detail/id/520829.html . In a story entitled "Maui Wipeout http://www.mauinews.com/page/content.detail/id/520909.html , today's front page, the paper details some of the facts about foreclosures and bankruptcies on Maui.
These stories offer interesting and somewhat depressing pieces of a bigger puzzle. Is it really this bad or is there opportunity? If so, where and for whom? What does it mean and what do the actual numbers have to say? Stay tuned for the "rest of the story", coming soon to an email or blog near you.
Lee Potts
On September 1st of 2008 Skip Potts, my son, began his walk across America for People for Educational Equality (PFEE). The aim of PFEE is to bring awareness, resources and support to under performing, underfunded schools.
Skip's trek took him down the eastern seaboard to Florida and across the south through Texas and the desert southwest. He ended at the Santa Monica Pier yesterday, June 6 where the event was covered by ABC.
Along the way Skip had the opportunity to stop and speak to students at a number of schools about the doors and opportunities education can open. He was met with kindness and generosity throughout country.
To learn more about the walk and PFEE, visit http://www.pfee.org/. And feel free to make a donation to support education.
Lee Potts
808-276-8776
This article appeared in USA Today yesterday. That's confusing.
In any event, University of Hawaii economist, Byron Gagnes, and the executive director of the Realtor's Association of Maui, Terry Tolman, are quoted in a discussion of what's happening to prices in paradise.
The Reader's Digest version is that Maui prices are down and Gagnes and Tolman appear to be in agreement that prices are not yet at the bottom. In a follow up telephone interview Tolman claimed he was misquoted.
It's news reports like this that usually indicate we are at or near the bottom. In fact it's these kinds of reports that create the bottom.
Keep a close eye on the kind of property that suits you. If you are not getting automatic notifications from us now, let us know so you can be sure not to miss "the deal." Remember, no one is going to ring a bell to let us know we've hit bottom.
Lee & Barb
808-276-8776
New Report says foreclosure rates in Hawaii nearly triple.
We learned this week that there 337 filings in Hawaii in January according to Realty Trac. This was the 6 consecutive month in which foreclosure fillings exceeded 300. Prior to August we were averaging about 150 per month. In September there were 594 and in December 499.
More important to us is that Maui had the highest rate of fillings per household of all the islands. However, we are still seeing far fewer filings than the rest of the country on average.
Contact us to find out more about distressed properties in Maui. Contact Lee for a list of short sales and REO's.
Live Aloha!
Lahaina Lee Potts R(S), MBA
The Aloha Potts Team
Lee and the Aloha Potts Team at Aloha Realty Group are experts in distressed properties including short sales and REO'S.
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