Jul 212012
 

 

Lahaina Shores

The West Maui real estate market showed a considerable amount of weakness in the months of July and August, with foreclosures continuing to spike amongst West Maui homes for sale and commercial real estate continually shifting hands. An August 29, 2010 report from the Maui News noted that “The foreclosure picture for Maui is “not pretty at all” with nearly a thousand single-family homes and condominiums currently pending foreclosure – nearly double the number from a year ago – said the executive director of a non-profit housing organization Thursday. Another survey showed Kihei leading the state in new foreclosures last month, with 110. This gloomy financial scene, including short sales and a willingness by some financial institutions to dispose of properties at a loss, continues to drive down housing prices. Still, with little new home construction, these listings are supplying the inventory that has brought a kind of normalcy to the real estate market, according to those involved in Maui housing and foreclosures. The lower prices are great for buyers but not for others with adjustable rate or exotic mortgages tied to rising home values. Many have lost their homes because of lost jobs or reduced hours; others are seeking advice on loan modifications and short sales. The foreclosure situation has not yet turned a corner on Maui, said John Andersen, executive director of Na Hale O Maui, a nonprofit organization that converts foreclosed properties into affordable housing. There are currently 946 pending foreclosures of residential properties; there were 482 last August.”

One of the largest examples of Maui commercial property faced another turbulent change recently, as yet another company bought out the Maui Prince Hotel. According to an August 31, 2010 article from the Wall Street Journal, “A rollercoaster year for the former Maui Prince Hotel in Hawaii continued this week when one of the property’s mortgage holders took ownership with the intent of operating and further developing it. AREA Property Partners, the former Apollo Real Estate Advisors, announced this week that it converted its $30 million portion of the hotel’s $192 million mortgage into equity.”

 Posted by at 10:13 am