I came across an article the other day from one of the real estate industry websites that I browse through daily. It was all about how the news of today affects buyers and sellers. It explained how the world’s markets affect the United States and how it might influence the Federal Reserve. It then changed directions and compared today to 1968. As you can see from the graphic to the left, 1968’s events were similar to events happening today.
In terms of the real estate industry, I’m sure the uncertainty of 1968 affected buyers and sellers in the same ways as they do today. The prime rate is defined as the lowest rate of interest at which money may be borrowed commercially. In 1968 it ranged from 6.25% to 6.75%. In 2016 it has fluctuated between 3.25% and 3.5%. The Federal Reserve even announce that they would raise rates but they are still at record lows.
The housing market didn’t fall in 1968 because of world events and it will not fall in 2016. So far $1.4 billion dollars worth of Maui County real estate has sold in 2016. Last year a total of $1.8 billion dollars worth of Maui County real estate sold. In short, as one of my favorite characters from South Park says: “move along there’s nothing to see here”. Tell Chicken Little that the sky isn’t falling.
If you are looking for a “deal”, now is the time to buy. Properties that did not sell in the past few months may now be more acceptable to lower offers. If you are looking to sell, do it now, price it right and move along to the next chapter in life. Should you have questions or need specific information about a property in South Maui, don’t forget to get in touch with me. Thank you for taking a look at my rambling blog post. Enjoy the rest of your week.
Ken K.K. Wong REALTOR (S) 58204
Coldwell Banker Island Properties