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The Maui real estate market is starting to signs of recovery, despite a higher rate of foreclosures and a controversy over potential property tax increases. According to a May 20, 2010 article from the Lahaina News, “The market is starting to turn, indicated by the increase in unit sales. While the Homebuyer Tax Credit program has ended, the resulting sales (closings) through May and June will show in the next two months’ statistics.” The article went on to note that “Anecdotal evidence from agents, lenders and escrow personnel indicate that a good portion of the transactions in process (not yet closed) are outside of the tax credit program, and that there is strong buyer-showing activity that should result in future sales. Condo median prices are showing some small upticks. The inventory includes many short sales and REO (bank owned) properties that will need to be absorbed as sales before we can move ahead to a more normal marketplace, at which time prices will start to rise.”
The Maui real estate market has also suffered from an increased rate of foreclosures – more Maui homes for sale have been either short sales or bank auctions. According to a May 13, 2010 article from the Honolulu Advertiser, “Real estate in Hawaii’s foreclosure pipeline hit a high for the year last month, signaling that homeowners continue to struggle with mortgage payments even as the economy and real estate market are showing signs of a slow recovery. The increase in foreclosures in Hawaii comes as the nationwide total dipped for the first time since the economy faltered more than two years ago, according to a new report.” The piece by Andrew Gomes went on to note that “On Maui, the rate was one filing per 187 households, based on 353 total filings.”
The property tax rate on Maui real estate may be facing an impending rise, according to a May 13, 2010 article from the Maui Weekly. The piece by Sarah Ruppenthal continued to say that “This form of consolidation, according to Upcountry resident Penny Dant, ‘is just about raising taxes…there is no reason to blend condos and hotels.’ In this current economic climate, she said, ‘Rents are down, home sales are down, jobs are in jeopardy – and the county wants to raise taxes?’”
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