Volume 2, Issue 6
2nd Quarter 2008

Mary Anne Fitch Realtor ® (B)
808.250.1583
www.soldmaui.com

The good news is that for the resort and high-end markets of West Maui, the recent crisis in the sub-prime mortgage lending industry has had little to no impact. The typical buyer for these areas is completely different than the buyer on the U.S. mainland. The Maui buyer is not purchasing a primary residence but is buying home number 2, 3, 4, or even 5!

No one needs what I am selling. This market is strictly driven by wants and emotions. For the “baby boomer”, a purchase of a Maui property is the reward, a rational justification for a lifetime of hard work and sacrifice. Many baby boomers feel they have earned the right to enjoy life and a home in paradise is the ultimate in self-gratification.

The other good news for those seeking their piece of paradise is that this is a buyer’s market with a tremendous number of options for inventory. Additionally, while interest rates are low, given that this is an election year, rates may continue to decrease and thus, fuel this buyer’s market.

This is not a market to speculate, but one to invest in for the long term. It’s a perfect market for the client that I refer to as the “legacy investor.” A “legacy investor” is a successful baby boomer who is looking for his tropical “Kennebunkport or Hyannisport” -- a place where generations will gather during vacations and holidays to share memories and create new ones. Maui is not just paradise on earth, it’s also a place for all ages.

In 2007, there were 4 premium oceanfront “legacy properties” that sold on the average in excess of $10 million in West Maui; one in Lahaina, two in Kahana and another in Kapalua. These are clear examples of the market demand for “legacy properties”.

This demand has had a resounding effect across West Maui. Comparing 2006-2007 year-over-year sales, the number of Kapalua single family home sales increased by 200%. The total dollars in sales volume increased by 338%. The average sales price increased by 46%. And while the Kaanapali market performed more modestly, it still realized increases in the number of sales and total dollar volume of 13% and 20% respectively. These are phenomenal statistics in any market condition and I believe it is indicative of the global demand for the Maui lifestyle.

The Ritz-Carlton Residences, The Ritz-Carlton Club, Kapalua Bay, as well as The Residential Suites at the Ritz-Carlton, Kapalua, are distinctive new developments that are soon to be complete. The Villas at Royal Lahaina on Kaanapali Beach are expected to commence construction soon. Each appeals to a segment of this very affluent market.

In order for a buyer or seller to maximize their opportunities in such an atmosphere, the choice of a real estate professional is critical. Look for an experienced Realtor® who is an expert in the area, who is willing to work closely with you, and who can negotiate the best price. A Realtor® who knows the area intimately will also have knowledge of who are the motivated sellers.

These are the tangible components that cannot be “Googled” but can make a world of difference in a successful real estate transaction. The savvy investor wants someone who is experienced, knowledgeable and persistent. There has never been a better time to make an investment in the resort property one has always dreamed about. Get your second wind, the ride is about to continue.

10 Hoohui Road, Suite 109
Lahaina, Hawaii 96761
Each Office is Independently
Owned and Operated.

Statements or expressions of opinion appearing herein are those of the authors and not necessarily the views or opinions of MAUI, A Property Portfolio LLC, its publishers or staff. MAUI, A Property Portfolio LLC, its publishers and staff disclaim any liability arising from reliance upon any information or opinions contained herein.