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Impact of Maui Catastrophe: Potential Effects on Sales and Rental Pricing in the Big Island

Active Market, but for how long?

The recent catastrophe in Maui is expected to have a significant impact on our sales and rental pricing in the Big Island for the foreseeable future. The majority of the Maui residents are currently staying in resorts while they await funds for re-building. The restructuring of Lahaina will heavily impact all islands and based on my observations, I believe that people from Maui will prefer the Big Island. Oahu is an island that is very populated and Kauai is very remote and it is not as developed as The Big Island. Our hearts continue to be with Maui and we are all hoping that the families recover from this very tragic event.

While observing metrics from MLS, we can note that our inventory continues to be limited. As of today, there are 165 active listings that encompass land, condo, and residential. Due to recent events, I foresee that prices are likely to either increase or remain stable for the rest of the year and beyond. Unfortunately, this is not good news for first-time or financially constrained-buyers who were hoping for a drop in prices and interest rates to make a purchase. Only time will reveal the true outcome, but I can tell you from experience on the field that there are homes that are still receiving multiple offers when priced competitively.

Fortunately, North Kona is performing as anticipated. We have 130 pending transactions, and we typically close half of them each month. Our normal closing rate ranges between 50-60 per month, but during the second quarter, it can reach 80-90. The available inventory has had minimal changes, and there have been some listings that have surprised me when they have gone contingent. There are still buyers out there that need housing and the demand for living in paradise continues.

As for residents potentially moving from Maui, we are uncertain of the exact numbers. However, if you have condos or houses available for rent, please inform me so that I can direct you to reliable sources. Our West Hawaii association has put together a list of available inventory for Maui residents who were directly affected by the fire. It will be my pleasure to connect you with a reliable source.

# of Sales on The Big Island of Hawaii – August 2023

144

Residential

150

Vacant Land

41

Condos
News and Economy

August Updates

County of Hawai'i

Amazing Donation to Maui Relief Efforts - Jeff Bezos and Lauren Sanchez Give $100 Million!

In a heartwarming gesture of compassion, Jeff Bezos and his beloved fiancee, media personality Lauren Sanchez, have generously donated a staggering $100 million to support relief efforts in Maui. Their profound act of kindness will play a vital role in helping the affected community rebuild and recover.

Lahaina

Early estimates on overall cost to rebuild Lahaina is $8-10 billion.

Hospital

Exciting News: Queens Health System is expanding with a new walk-in care facility! They have acquired 30 acres near Costco for this purpose. Moreover, they have collaborated with Kona Hospital to upgrade their software, allowing for seamless sharing of patient files. This development marks a significant step towards providing enhanced medical care for the community. We can't wait to see the positive impact it will have!

Loans

Are you in need of a loan? American Savings Bank and First Hawaiian Bank are offering incredible deals with low down payments and low interest rates. You can even get some loans with just 3% down! Plus, if you're lucky, you might even be able to receive gifted funds. Connect with me for more details

TAR

Attention all vacation rental owners and enthusiasts! Have you heard about the latest vacation rental bill, TAR? Although it has hit a wall since last month, there's good news - the County is currently working on Draft 6 (we do not know where draft 5 went, but it appears that we are on draft 6) and it's set to be released in October. Stay tuned for the latest updates.

Rock and Crab Kona

Looking for an unforgettable adventure with your little ones in Kailua Kona? Look no further than the Hawaii Keiki Museum, where the magic of learning meets endless excitement! 🎉✨

🔹 Immerse your kids in the wonders of science, art, and history!

🔹 Explore interactive exhibits that spark curiosity and creativity.

🔹 Dive into the captivating underwater world at the Marine Life section.

🔹 Unleash their inner artist with hands-on arts and crafts activities.

🔹 Build a castle with their super exciting foam blocks and unleash your imagination!  🤗

Make sure to get your Annual Tickets for $150.00!

Property Highlight

Sea View Lots

Purchase Price: $650,000

Home needs TLC but offers amazing ocean views!

TAR UPDATES

Finding a way to reach your goals is possible, even when faced with obstacles. Don't waste your energy on a closed door. Explore alternatives, it always pays off 🤙

Maly RomeroReal Estate Consultant