In Indymac Bancorp's third quarter review, they included a graph showing projections for the national housing prices. Read this chart carefully, it measures the rate of change in prices, not absolute price changes. So it shows that the worst price declines are yet to come and prices won't begin to rebound until 2009. What does this mean for Maui prices? Not much except in the mindset buyers bring to the market.
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We have been getting some swells over the last few days. Here's a photo of the southern end of Big Beach.
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In October of 2007 five condominiums sold in Wailea/Makena. That number looks anemic until one remembers that only 2 sold in October 2006 and 2 in 2005. October just reflects the fact that September is a very slow tourist month. Two of the sales were in oceanfront complexes. While conclusions based upon only five sales should be drawn cautiously, the median sale price of $2 million was very strong as was the per square foot average of $1409. The oceanfront sales both went for over $2500 psf. Time on the market was an extended 234 days and sellers received 90% of their most recent asking price.
Today the Board of Governors of the Federal Reserve lowered its target for the Fed Funds rate 25 basis points to 4.5%. Here is a snippet: