Archive: April, 2009
Apr 13
MAUI SUNRISE
Apr 13
THE CASE FOR BUYING NOW
From the Wall Street Journal's Bret Arends
Maybe the moment of maximum pessimism is at hand after all…So let me play devil's advocate and consider the positive case for buying a home right now. The key factor: Interest rates. If you can borrow at 4.5% or 5% over 30 years, many purchases start to look appealing. Especially if we get a hefty dose of inflation down the line. If that happens, your monthly payments will be low and you'd get to repay the principal over time with devalued dollars. That's a double win.
The entire article is worth a read.
Apr 13
FEBRUARY SALES RESULTS
The national February sales figures show that
- Existing sales rose 5% from January to a 4.72 million annual rate
- Months of supply increased slightly to 9.7 months
How does that affect Maui real estate? Directly it doesn't at all. But both of these data points seem to indicate that we are at or near a bottom.
Condominium sales across Maui fell 49% in the first quarter of 2009 compared to the same period a year ago. Median sale price declined 27% and the average per square foot value was 29% lower. Single family homes saw similar trends with unit sales falling 34%, median sale price falling 22% and average value per square foot down 27%.
Now obviously none of this is good news but we are now weeing prices at 2004-type levels and that makes it a heck of an opportunity.
What are some of the construction reasons to own in Kai Ani Village? Here are a few on the interior:
You get a lot for your money at Kai Ani Village.
We are finally seeing some reasonable economic data:
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New home sales rose 4.7% in February to a 337,000 unit annual rate, rebounding from the all-time low hit in January… Around 5-6 months of supply would be consistent with a balanced market;
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Meanwhile, existing home sales gained 5.1% in February to 4.72 million after hitting a 12-year low, but inventories were unchanged, remaining badly elevated at 9.7 months.
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Similarly, durable goods orders at first glance looked much better than expected,Against the expected bigger negatives from investment and inventories, the consumption picture at least looks a bit better.
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Real consumer spending fell 0.2% in February, as expected, but January was revised up to +0.7% from +0.4%. As a result, we now see 1Q consumption rising 1.3% instead of +0.9%. While the swing into positive territory would be a positive development, the upside we’re forecasting would mark a meager rebound
Don’t get us wrong, none of this is good news, but it is better than things have been recently. While there is no direct impact on Maui Real Estate directly, over time an economic improvement will help us.
According to a recent report by the National Association of Realtors
Also in February, NAR’s Housing Affordability Index rose to a new high…NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said home buyers are in an excellent position. “The drop in mortgage interest rates and home prices mean the buying power of a typical family has never been better,” he said. “If you have a good job and long-term plans, it’s unlikely that you’ll find a much better time to buy a home. This is especially true for first-time buyers who can qualify for an $8,000 tax credit this year, have a great selection of homes to choose from, and are in a favorable negotiating position.”
Unabashed good news.
Kai Ani Village
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1367 South Kihei Road
in Kihei, Maui, Hawaii
Windermere Real Estate
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