Are Foreclosures Making a Comeback?

Posted by Alex Cortez on Saturday, July 12th, 2014 at 5:34pm.

*Update: In month of July, there were 19 REO's (foreclosures/bank-owned) listed. We are experiencing a significant increase over past months. Contact us if you are looking for a specific type of property and/or want information as to WHY the sudden influx.*

The Maui real estate market hit the height of the market in the spring 2007 - with slight variance depending on the type of property in question - after which, with the market at a rapid decline and property owners losing significant amounts of equity, the inevitable happened: Properties started going into foreclosure. Below is a chart detailing the amount of REO's ('foreclosure'/bank-owned) listed each month:

Foreclosures on Maui

With a mere 45 listings in 2008, one could not have foreseen what was about to be unleashed, peaking in 2011 with 574 REO's coming on the market. However, with Act 48 being signed into law by Gov. Abercrombie in 2011, it effectively curbed lienholder's ability to foreclose non-judicially. That translated into REO's in 2012 being less than half of the previous year. But as these foreclosures slowly moved through the judicial system, we are beginning to see a small increase over the previous year. More importantly, however, is that the quality of the properties being listed is more turnkey than in the past (such as 37 Ualei or Kai Makani C-103, as examples).

One more peculiar statistic is that the list price-to-sold price ratio is down significantly, from over 98% in 2011 to slightly above 92%, so far in 2014. This can be interpreted in a couple of ways, but the most glaring interpretation is that banks are much more open to negotiating than in the past.

Newly Listed REO's This Week

Below is a list of every REO (foreclosure) introduced to the Maui real estate market this week. 

All Property Types in All Cities

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Specializing in Makena and Wailea real estate, Alex Cortez is fully dedicated to representing his clients ethically and diligently. Contact him at 808.385.5034 or Alex@MauiRealEstateSearch.com for more information.

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