July 30, 2010

Makena real estate housing market

The Makena housing market, along with the rest of the Maui real estate market, began to show signs of improvement after several consecutive months of severe losses and declines. According to a July 8, 2010 report from the Lahaina News, “While median prices may have slipped slightly, the report indicated that average prices for both homes and condominiums are following upward trends, with condo sales in particular steadily increasing, although median prices have declined. And while the total number of sales in Maui County may fall into the less-than-desirable range for sellers and their agents, it is still up nearly 72 percent compared to sales in May of 2009—certainly an encouraging sign. Residential sales in the first five months of the year “held strong,” with 81 homes sold and 104 condo units sold. May’s median sale prices were $442,000 for homes, $412,500 for condos and $547,500 for vacant lots of land, according to the report. Best of all, and perhaps most appealing to potential homebuyers, the report said, “Interest rates are remaining near historic record lows, which may help motivate would-be buyers to go ahead and buy.” The RAM report also noted that, as of May 2010, land sales had risen to 16 lots. This is not only welcome news to sellers and buyers, but also to land developers, architects, contractors and construction workers, who have also felt the pinch of the vulnerable housing market.”

The report by Sarah Ruppenthal went on to note that brokers are pursuing creative avenues to sell Makena homes for sale. It stated that “Despite the odds stacked against them, many developers have found creative ways to jumpstart Maui’s weakened housing and construction industries. For instance, Pe‘ahi Farms, which sits atop 130-foot cliffs along the picturesque North Shore coastline, has 15 vacant farm estate lots for sale. Last week, Pe‘ahi Farms’ project owners announced a sales incentive plan extended to potential homebuilders throughout 2010. The plan, which is designed “to get the real estate market ball rolling,” offers a significant price reduction that will allow up to six homeowners a substantial lot discount if they are prepared to start the building process. The SMA process is complete for the entire project; therefore, project owners said, the lots are ready-to-build.”