• Archive for June, 2010

    Makena real estate market

    June 8, 2010 // 2 Comments »

    Makena Landing Beach
    Image by Rosa Say via Flickr

    The Makena real estate market, one of the more resort-heavy and tourist-friendly sectors of the larger Maui real estate market, seemed to be still showing signs of strength despite an extremely high rate of foreclosure. According to a May 20, 2010 article from the Lahaina News, “The market is starting to turn, indicated by the increase in unit sales…Anecdotal evidence from agents, lenders and escrow personnel indicate that a good portion of the transactions in process (not yet closed) are outside the tax credit program, and that there is strong buyer-showing activity that should result in future sales.” The piece went on to note that “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. Interest rates have started to rise from historic record lows, which may also motivate would-be buyers to go ahead and buy.”

    One of the largest examples of Makena real estate, the massive Makena Beach & Golf Resort, was recently purchased at a government-mandated auction. According to a May 29, 2010 article from the Honolulu Star Bulletin, “The lender in the Makena Beach & Golf Resort foreclosure case ended up being the highest bidder for the property, but that might not last long. A court-mandated public auction for the Maui property was held at the Maui County courthouse yesterday morning.” The piece, written by Gene Park, continued to say that “Wells Fargo Bank had the highest bid at $55 million. The financial institution is owed more than $192.5 million in principal, plus interest and other costs on its mortgage loan. The only other bidder, who wished not to be disclosed, put in a bid for $50 million.”

    This same news, which might help to stabilize the fortunes of Makena homes for sale, was mentioned in a May 28, 2010 piece from KITV News. This report said that “The bid was submitted on behalf of Wells Fargo Bank as trustee for the mortgage lending trust that foreclosed on the former Maui Prince Hotel last year…The 310-room hotel sits on 1,800 acres of East Maui.”

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    Posted in Hawaii

    Palm Springs Real Estate

    June 6, 2010 // 4 Comments »

    Willowood Townhomes in Salinas, California. Wi...
    Image via Wikipedia

    The average price of a Palm Springs home for sale, along with the average sales price of other Coachella Valley communities’ homes for sale, rallied in the month of April. According to a May 29, 2010 article in KPSP 2 News, “If you’re trying to sell a home or condo in the valley there is some good news. Compared to the same time period last year home prices are up quite a bit…According to a report just released from the Palm Springs Regional Association of Realtors, the median home price in the Coachella Valley rose 31% in April, compared to the same time last year.” The article by Jackie Pedroza went on to say that “The median price jumped from $150-thousand dollars to more than $190-thousand dollars…Currently across the valley, there are around 5 thousand active listings for homes and condos. Of those 40 percent are priced at or below 300-thousand dollars.”

    This same positive news for the Palm Springs real estate market was reported on by a May 25, 2010 article in the Desert Sun. This piece found that “The median price for Coachella Valley home sales in April rose 31 percent in April compared to the same time last year, Palm Springs Regional Association of Realtors data show. It rose to $197,040 from the $150,140 median in April 2009.” The article by Debra Gruszecki continued to say that “Scott Newton, president of the Palm Springs Regional Association of Realtors, said the April numbers show a market that is moving out of high-season and is so focused on median price that inventory is getting low. ‘That creates higher demand,’ he said. ‘Higher demand creates slightly higher prices.’”

    A high foreclosure rate has led to growth in the number of short sales among Palm Springs real estate, according to a May 23, 2010 article also in the Desert Sun. This piece noted that “With foreclosures continuing to pummel the Coachella Valley floor and home values dropping real estate agents are working with property owners in bigger numbers to drive short sales…Real estate experts say they’re seeing spurts of multiple bids and cash buys on homes priced below $250,000 by investors with deep pockets, buyers from other states or residents with equity in their home, a move-up mentality or frazzled nerves from a volatile stock market.”

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    Posted in California