Comments on: Maui Home Sales Are Falling, Will Property Prices Begin to Decline?

By: Justin - Head Web Head

Justin - Head Web Head — Tue, 14 Jul 2009 03:32:22 +0000

@Virtue – last week I might have said your predictions were a little harsh. But this week, I think you’re spot on. Check out my latest post,

http://www.hawaiilife.com/articles/2009/07/maui-real-estate-market-worse-then-we-thought-foreclosures-galore/

By: Virtue

Virtue — Fri, 10 Jul 2009 20:30:35 +0000

Maui real estate prices are just beginning to decline.
Real estate prices will continue to decline for the next few years….possibly returning to price ranges of 8 years ago – 2001. The run-up in prices was truly a “bubble”…..and will not return for many years.

The mainland economy is entering a long recession…..jobs are disappearing…..boomers lost much in the 90′s dot-com blow-out and now the stock and real estate losses…..they have to start saving for retirement…..also tourism will significantly decline…..and real estate will return to a level of it’s “true value”. Thus, a house that sold in 2006 for $600,000 bubble price…..but was originally built and sold in 2002 for $265,000……will return to a more “realistic value” of around $325,000 or less.

Maui residents are in for a “wake-up” shock….economically.
Another consideration is the “cost fo going to Maui” for the average working family on the mainland is still way “too high”.
There are simply “cheaper” places to go…..

By: Dennis

Dennis — Thu, 18 Jun 2009 17:05:46 +0000

Price will drop . The question is how far. The big problem is over building, Especially in west Maui. Plus a lot of investor bought in 2005 and 2006 with those option Adjustable loans. Thinking they could make minimum payments for 5 years then sell for a profit. I think there going to be Hugh amounts of forecloses in 2010 & 2011 . My prediction price drops to 2002 prices Plus 3% per year.

By: Jeff

Jeff — Thu, 18 Jun 2009 01:25:50 +0000

Usually when the amount of homes being sold by that large of percentage prices will follow. As you mentioned the prices dropped by 14%. I agree that is not bad as the mainland and hopefully it will not get that bad. Hawaii is a unique place and a lot of advantages the mainland doesn’t. Every market is a little different.