Living on Maui, we sell lifestyle more than anything else. I can crunch numbers with professional real estate "investors" but quite frankly the buying decisions are driven far more by emotions and the transfer of assets from use assets to enjoyment assets. Furthermore, I do not have any power to predict the bottom of any market or the future of the US / World economy. If I did, I am sure I would have already received a call from Ben, Hank or George. That's my disclaimer.
Over the last couple of months I have encountered a few interesting data points in the Maui Real Estate market.
•· I have had two prospective buyers tell me that since they couldn't find a better place to put their money, that they were interested in purchasing Maui Real Estate. One is a very seasoned financial professional. He did a lot of his own research, drew his own conclusions and purchased fairly quickly. The other prospect is still in process...
•· I've seen a few agents "pitching" a line "Tired of stock market gyrations, invest in Maui Real Estate". That is somewhat of a paraphrase, but you get the point.
•· The number of pending sales on the MLS have been fairly steady for about 60 days now.
•· Recently Pete and I are seeing an increase in website inquiries. Many of them are somewhat uninformed or wishful thinking, but the numbers seem to be trending upward without any huge increase in the search engine rankings.
My observation from above are data points but they are worth keeping an eye on to see if they represent a trend. With the Dow's retreat, I can see where the two aforementioned buyers were coming from. Obviously real estate markets have dropped just about all over the Country and Maui is no exception. However, the Dow at its peak was just over 14,000 points. Today it closed at 10,831. That is a drop of approximately 23% in less than a year, which is above the national average for real estate. The current pain and uncertainty in the Stock Market reminds me of another adage that I've heard a few times. You can't live in your stock market portfolio :-)
I continue to remind my clients to be patient, be a tough negotiator, buy for love and think long term. With that formula in mind, it's hard to go wrong.
Stay positive, enjoy life and do your job as well as you can.