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Makena real estate market

June 8, 2010 // Comments Off

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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