At the Commercial Real Estate Development Association (NAIOP) mid-year market forecast this month, Hawaii economist Paul Brewbaker explained why our lovely rainbow state housing market is in a production cycle. It was nice to see the return of legitimate optimism.
Brewbaker stated that there are 3,255 new housing units that have been authorized by building permits throughout the state. While some are skeptical that the twenty condo projects on Oahu are going to be built, he pointed out that the island used to build that same number of condos in a year.
Brandon Lau of Honolulu-based Prudential Locations said that the number of multiple bids in the market can give you a solid idea of how active the market is. Right now, 35 percent of single-family homes and 25 percent of condos are getting “bid-ups.”
At this point, inventory is low, so prices are rising. Interest rates are also low and rising. If you’ve been on the fence about buying Maui real estate, future conditions will involve more expense than the current opportunities.
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