Will a Recession Affect the Maui Real Estate Market?

How Will the Next Recession Affect the Housing Market… 

Given the current media buzz of an impending recession, many Americans are fearing the worst and believe a downturn in the real estate market is inevitable. Take a look at the graph below from Keeping Current Matters.

It’s important to note that of the last five recessions in U.S. history, three of them saw increases. Two of those three saw prices appreciate faster than the historical average, and the massive down turn was as a result of loose ethics and loan practices.

Graph showing the housing market in the last 5 recessions

Recession does not equal a housing crisis

 

What Exactly is a Recession

According to Websters Dictionary, a recession means a time where the economy dips for a period of 6 months. Considering that we’re in the longest running economic recovery, it’s no surprise that we’re in for a breather. The Maui marketplace is still robust and active with consistent visitors looking to scoop up great properties and the inventory is low – so it’s still busy and still fast paced for those looking to buy.

How Will Maui Be Affected?… 

Saying anything is recession-proof is a tough statement to make, but any time you have scarcity in a market, whatever the market is, it sets up your investment for success. Purchasing in a location with limited supply is key to making sure your vacation home investment doesn’t depreciate dramatically in a recession. The rental income opportunity can also provide some insulation from market downturns, and there are other factors, too, that help make certain types of vacation homes less risky investments. Check out the most recent short term rentals in Wailea here.

For the best locations in Hawaii, like the Maui beachfront, the dip in property values at the last turn was only 10% to 12%, the reason being the barrier to entry—the ability to get anything built—is unbelievably tough. It isn’t overbuilt, and people recognized the value here. Selecting the location of your vacation home wisely may not protect you entirely from seeing a drop in value during a recession, but it could mean that the decrease you see is much smaller than it would be elsewhere. Also consider whether a second home will be a long-term investment, and perhaps even someday become your primary residence or legacy. Our listings at Mahana Estates are legacy homes where families are seeing their dreams built before their eyes.  I encourage you to reach out and ask questions on how we can paint this picture for you.

Places like Hawaii, Cancun and Mallorca don’t go through seasonal ups and downs. There are low and high seasons, but people are always visiting. People buy a second home and eventually envision living there, so in that sense it’s recession proof. Even in a recession, there are people that still have money, and they’re looking for very specific types of houses, and are very location-driven. As we approach winter, we expect more inventory to come one as usual and we look forward to seeing our friends who return year after year.  If you’re curious about a Maui investment, reach out, let’s get your toes in the sand. Aloha! 

Posted on October 4, 2019 at 8:36 pm
Erica Haleakala | Category: Maui, Maui Development, Maui Economics, Maui Real Estate Reports, Moving to Maui, Short Term Rentals | Tagged , , , , , , ,

What can $650,000 Buy You in Real Estate on Maui

“A quick synopsis of the market in one of the hottest US investment and tropical destination locations. You’d be surprised at how affordable Buying on Maui can be. “

Year round sunsets and perfect weather, and a quality of life that is unsurpassable. I encourage you to ask questions, poke around and discover what a smart investment in the Hawaiian Islands can do for your financial portfolio and your peace of mind. Vacation rentals are what makes Maui appealing to the investors palette. Year round sun, means year round vacations. Purchase a family legacy to return to and build memories while generating a passive income stream at the same time.

The Short Term Rental market starts at 400k and the sky is the limit for Maui’s most luxurious oceanfront developments. There are all kind of options for both South and West side locations at this price point. This week, my favorite opportunity is a 3 bedroom, 2 bathroom short term rental in Koa Resort, across the street from sandy beaches in Kihei, South Maui. This spacious unit has a functional floorpan in a low density and lush garden ambiance. Development amenities include tennis, pool, jacuzzi, and sauna. Smart investment recently listed at 629k.

Absolute oceanfront from this 1 bedroom, 1 bathroom short term vacation rental at Sugar Beach Resort. A clean and bright unit with granite in kitchen and bath. Year round sunsets and whale watching in the winters from this make this short term rental an absolute no-brainer – it will rent like clock work year-round. If this one sparks interest, act fast. Oceanfront at this price point doesn’t last long. Just listed at 699k.

A charming fixer with good bones and a great floor plan in Maui’s Makawao Ranch Acres. This home has a large lanai with 3 bedrooms and 3 baths and 1900 sq. ft. of living space. Tucked on the hillsides of majestic Haleakala Crater for cooler climates and fresh trade wind breezes. Enjoy brisk weekend mornings at the Kula farmers market, and be conveniently located near Maui’s most coveted private schools. This spacious 12,000 sq. foot lot is a smart investment and provides enough room to settle in and settle down in a charming upcountry location. Newly listed at 665k.

A 14,500 square foot vacant lot ready to build. Wonderfully located cross the street from multi-million dollar homes and the most epic sandy beaches. Halama Street is known for it’s oceanfront estates and extreme accessibility. Stand-up paddle, fish and enjoy year round sunsets in a highly desired South Maui location. At approx 1/3 acre and zoned R-3, this flat, rectangular 142’ X 101’ lot is in a new subdivision. Water meters, road improvements, curbs and walks are all in and ready. Bring your imagination and lets put paradise in your portfolio.

“World-class beaches, dining and golf are right at your fingertips.”

If you’ve thought of making an investment in a place of rapid growth and endless appeal, I’d love to talk to you about the best opportunities available on Maui. I’m happy to share all about my relocation from Los Angeles in my early 30’s – and how amazing it feels to never look back. The priorities shift when buying on Maui – you start to feel and share the aloha.

Posted on August 4, 2018 at 12:54 am
Erica Haleakala | Category: Oceanfront, Short Term Rentals | Tagged , , , , , , ,