Recently I wrote an article Maui home sales are falling, will property prices begin to decline. I wrote the article because there were some things about the Maui real estate market that just didn’t make sense to me. Like why hadn’t prices dropped at the same levels as other Hawaiian islands? A pretty good discussion ensued and the consensus was that reality would eventually catch up with Maui’s inflated home prices and the “Valley Isle” would see property prices drop…it was just a matter of time.
Well that time may have already come. In a recent article from The Maui News titled, Maui wipeout: Residents swept in debt, we learn that there were so many Maui foreclosures at the latest auction (380 pending according to the article) that people were having a hard time trying to keep up with the auctioneer. What’s even more shocking is that the article states Maui is in a recession. Why is this shocking? Because everything I’ve heard regarding the state of Maui up until this point has been about it’s strong economy.
So maybe Maui isn’t the “Golden Child” of Hawaii after all. And maybe their vacation driven economy isn’t recession proof as so many had lead us to believe. Like one person commented (Virtue if you’re out there, we’d love to hear more) in my last Maui article, “Maui residents are in for a â€œwake-upâ€ shockâ€¦.economically.”