Why are Maui Real Estate Prices Rising?

Why are real estate prices going up on Maui? It is mostly because of affordability.

Let’s assume you bought a home for $600K at the peak of the market in May 2006 with a down payment of 20%. The interest rate was 6.75% for a 30 year fixed rate mortgage which equates to a monthly payment of $3113.

Assuming you paid $600K for a home today, your interest rate would be around 3.5%. Your monthly payment would be $2155, a savings of over $950.

To make it even more enticing, single family home prices today on Maui are much lower than they were in 2006. We don’t have figures going back to 2006, but according to Realtor’s Association of Maui, the median price for a Single Family Home in 2007 was $628K. In 2012, the median price was $472K, a drop of 25%.

As one of our clients so aptly put it, “I want to get my foot in the door.” Don’t wait until prices go even higher. It is time to buy now.