“UP, DOWN OR SIDEWAYS – WHAT’S WITH THIS MARKET ANYWAY?” We see the “expert” reports and editorials in the news media and hear how “The market is up”… “The market is down”… “Sell now while you can”… “Buy now while you can”… What advice do you follow? Are the news reports accurate? Or are they biased?

With the entire world economy in such a state of flux, just about any conclusion can be drawn from the figures and just about any reporting of the figures becomes an “editorial” instead of an accurate, unbiased, “news report”. Opinion can be considered fact simply by presenting data in strategic places within the report. Reporting (particularly in mass media) can create a “self-fulfilling prophecy” as the masses buy or sell in an attempt to get on the bandwagon before it is too late.

The real estate market follows many of the same rules as the stock, commodity or currency markets. But there are also some major unique differences.

• The real estate market: •Generally is more difficult to get into and out of, so the “bumps” in the ride tend to get smoothed a bit. Owners usually invest for a longer duration. Both large & small investors caused much of the recent ‘bumpy ride’ by applying the same short-term rules, as they were accustomed to in other markets.
• Can be more easily leveraged (particularly by “non-accredited” investors) than most other markets, because lenders have considered real estate a “safer” investment. Most of the stock market type investment regulations are not in practice in the real estate market.
• Provides a more tangible use of the investor’s resources. Most owners will feel a more substantial and emotional connection to their real property than to their IRA investments in a mutual fund somewhere.

These differences will cause the real estate market to react differently to the laws of “supply and demand” than with other investment positions.

With this knowledge, how do we decide when and where to invest (or divest) in South Maui’s real estate market? Some graphical information might help in your decision making; however, we encourage you to look beyond the mere “facts and figures”. Look at your underlying needs and desires and you may see well beyond the investment. You’re buying a tangible investment and a lifestyle for you and your loved ones. If you love Maui weather, geography and culture, then do all that you can to come, visit, buy and stay!!