Cash transactions in 2011 surged to a new historical high. 51% of Maui real estate sales were purchased with cash surpassing the previous year’s high of 45% in 2010. The historical chart of cash sales below exposes financial institutions loosening qualifying requirements beginning in 2001 with a continual softening until 2008 when the financial meltdown began.
At the peak of the market (2005), the total dollar volume of sales rose to $2.76 billion reflecting 3,849 closed sales. For 2011, the dollar volume reached $1.346 billion, which is less than half the amount realized in 2005. In addition, the number of closed sales in 2011 at 2,183 is 56.7% off the high set in 2005. It’s a bit uncanny given lending rates are hovering at 4%. However, financial institutions continue to be cautious in their lending practices leaving many who wish to purchase Maui property sitting on the sidelines. … Continue reading
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