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May 2, 2005 – Newsletter for the Maui Market
Aloha!
Don’t forget; if you currently own a property and would like to be notified when there is a new listing in your particular complex, we can set you up to automatically receive the new listings via email. The service is also available for those interested in purchasing a condominium, home, land or other property. If you provide your first and last name, your email address, and the condo complex you wish to be notified of, we can program the system to notify you as new listings become available.
At the beginning of December, 2004, there were 186 condominiums for sale in the West Maui area and the total value was $156,629,640.00. At the beginning of January, 2005 there were 202 condominiums for sale in the West Maui area and the total value was $181,300,850.00 which translates in to a 9% increase in the number of condominium units listed for sale and 15.75% increase in total value. At the beginning of February, 2005 there were 213 condominiums for sale in the West Maui area and the total value was $192,803,740.00. At the beginning of March, 2005 there are 191 condominiums for sale in the West Maui area and the total value was $175,106,140.00. At the beginning of April, 2005 there are 176 condominiums for sale in the West Maui area and the total value was $166,628,680.00. At the beginning of May, 2005 there are 176 condominiums and the total value is $166,079,990.00 which translates in to no change in the total number of condominium units listed for sale and small decrease in total value.
The total condominium sales for West Maui during the month of December, 2004 was 47 and the total value was $21,974,500.00 during the month of January, 2005 total condominium sales for West Maui was 30 and the total value was $18,658,400.00 ; during the month of February, 2005 total condominium sales for West Maui was 64 and the total value was $32,380,771.00; during the month of March, 2005 total condominium sales for West Maui was 62 and the total value was $36,995,304.00; for the month of April, 2005 total condominium sales for West Maui was 69 and the total value was $37,681,957.00 .
Prices are continuing to go up but are gradually slowing compared to the previous four years (2000 to 2004) Hot Market. The year end statistics are now available on our web site, just go to the tab in the upper left hand corner and click on condo sales then click on MLS Statistics 2004. May is shaping up in the West Maui area to be similar to April, using a scale of 1 to 10 with 10 being a good Seller’s Market; West Maui is approximately an “8” and will likely weaken a bit for Sellers as 2005 progresses. We are beginning to see some price reductions for listed properties that have been on the market for sixty days or so and have not sold.
This past week we went back in to the MLS data base and pulled information for 2000 through 2004. In 2000 there were 654 condominiums sold in the West Maui area for a total value of $209,064,010; in 2001 there were 605 condominiums sold in the West Maui area for a total value of $271,681,337; in 2002 there were 730 condominiums sold in the West Maui area for a total value of $240,178,915; In 2003 there were 737 condominiums sold in the West Maui area for a total value of $319,748,466; In 2004 there were 699 condominiums sold in the West Maui area for a total value of $374,926,467. These are interesting statistics and at the end of 2005 I think the total of condominiums sold will be less that 699 with the overall value increased but not as strong. For the first quarter of 2005 we have 225 condominium sales at an approximate value of $125,715,000.
The MLS statistics are available for 1st Quarter, 2005 on our web site www.jamesbfoster.com and if you would like those emailed to you in an ADOBE pdf format let us know. We just updated all of the condominium projects listed with current sales and also the category, W. Maui Condo Sales 2005 as of May 2, 2005.
Long-term mortgage interest rates were flat Friday, April 29, 2005, and the benchmark 10-year Treasury bond yield rose to 4.2 percent. The 30-year fixed-rate average held at 5.31 percent, and the 15-year fixed-rate stayed at 4.91 percent. The 1-year adjustable was down at 3.7 percent. The 30-year Treasury bond yield gained to 4.51 percent. Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5. Rates are expected to keep going up. The Mortgage Bankers Association forecasts mortgage rates to rise about three-quarters of a percentage point the rest of the year. Length of ownership seems to be the most common deciding factor when people switch from ARMS to higher rate fixed rate loans. The mortgage rate information as in earlier newsletters will be available in the June edition.
I recently flew to Honolulu and took the National Association of Securities Dealers NASD Series 22 license exam and also the Hawaii State Series 63 Securities exam. I passed the exams and am now a registered representative with Brookstreet Securities. I wanted to have the ability to provide alternatives to my current and future clients in various Direct Participation Programs that NASD broker dealers have access to. There are many owners of real estate that have large equities in their properties and if they sell they are subject to the Federal Capital Gains tax and the State of Hawaii’s HARPTA which is approximately 7.25% of the actual gain after deducting their basis. If the seller is a Hawaii resident they are not subject to HARPTA but if the seller resides in another state they are. If a seller sells their property subject to a Section 1031 Tax Deferred Exchange, and if done properly, they can be exempt from both the Federal and the State of Hawaii tax. A seller that resides in another state can be subject to tax on their gain of approximately 22%+. If you would like more information please send me an email jim@jamesbfoster.com or call me on my toll free line, 888-661-7994.
If you would like to view the most current sales statistics for Maui or West Maui Condominiums, you can go to my web site www.jamesbfoster.com and click on Condo Sales in the upper left corner of the home page. I also post a Vacation Rental Management Report for your viewing by clicking on that tab in the upper left corner of my web site. The fourth quarter, 2004 should be posted soon. If there are any specific condominium complexes that you wish to be notified by email when a condominium becomes available for sale, send me an email as I check the MLS data about four times daily and if a new listing comes on the market I immediately notify any clients who have requested that information. Many owners also like to track what the units are selling for in the building where they own which they can do from my site.
Kindest Regards,
Jim Foster
Chase 'N Rainbows Real Estate, Inc.
P.O. Box 10398
Lahaina, HI 96761
Toll Free 888-661-7994
Direct Line 808-661-7994
Cell 808-870-5858
Fax 808-667-2957
Real Estate for Sale www.jamesbfoster.com
Vacation Rental www.chasenrainbows.com
Email jim@jamesbfoster.com
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