Maui Luxury Real Estate LLC ~ The Hansen Ohana. ~ Fourth Quarter 2121
Welcome to the final quarter of 2021! As we enter the Fourth quarter of 2021 and look forward to enjoying all the holidays it offers, and plan for 2022. We felt it was important for you to be notified regarding the Maui County and Hawaii State’s newly passed regulations. Some may or may not affect you. It is our hope it will be helpful to you. Covid has been a real challenge for Maui as well as all the Hawaiian Islands. The good news is that our percentages of spread have dropped. People all over the world continue to look for a safe place with warm weather to enjoy. Maui is that getaway. Regulations Regarding traveling to Maui can be found at https://travel.hawaii.gov/#/welcome . For our international guests’ new rules are in the works. We look forward to seeing many familiar faces very soon.
A New tax for Vacation Rentals: Governor Ige ruled to retain all the TAT (Transient Accommodation Tax) for Oahu’s use but did approve that outer Islands could charge an additional 3% TAT tax to pay for the items that the old TAT tax covered. All outer Islands have been financially forced to do so and we apologize. If you own a property that you rent out at daily rates, please be sure you communicate with your property manager as this additional TAT tax goes into effect November 1st. The Maui Council refused to put this off until December.
For Long Term Rental Property Owners: If you are a property owner who leases their main home or a cottage on an annual basis and you submit proof of that rental acceptable to the Tax Department no later than the end of December, you may be eligible for up to $200K reduction in your real estate assessment for tax purposes. Go to https://www.mauicounty.gov/civicalerts.aspx?AID=10807 for complete detai.
For Property Owners Living on Island: If you are living full time in your new property be sure to fill out the homeowner tax exemption form before the end of the year to get that fantastic lower property tax assessment.
Maui’s Economy: Prices of real estate on Maui continue to rise although at a more sustainable rate. Low interest rates coupled with low inventory is moving the market higher. However, interest rate seems to be ticking up slightly which changes the affordability rate. Some Lenders predict an increase in the 30-year fixed rate from 3.25% to 4% by mid next year. This means it is a great time to buy and a great time to sell. Median home prices as of September 30, 2021, were up 27.3% since a year ago at $996,500. The median price means that there are as many below the million-dollar price as there are above it. On the other hand, condos were up 46.6% from last year at $729,125. Total inventory of homes went down 57.1% from last year for homes. Condo’s supply decreased 90.8%. Well priced properties are receiving multiple offers. While many feel the hot market will end most economists believe that prices will continue to increase albeit at a slower pace. Inventory continues to trend lower due to increased construction costs, inflation and building permit delays. Some buyers are waiting on the sidelines because they believe prices will come down. Most seem to believe that prices will not trend lower and interest rates will trend higher due to some of the highest inflation rate in many years. This means that buyers might strongly consider getting off the sidelines and buying now before prices and interest rates go up.
Enjoy Maui Virtually!
Our Live Beach Webcam has sound so take time out of your busy life to enjoy the sounds of surf as well as wildlife by linking to https://www.mauirealestate.net/video.php?Size=Large
Wishing to virtually tour properties, open houses, and 3D tours go to: www.MauiRealEstate.NET
For Maui Covid and All Updates: www.MauiRealEstate.net/blog
Regarding our Annual December Event to help our Maui County Children know they matter is generally held the first Saturday of December. This has been a very difficult decision which we have not finalized yet, depending on Covid rules. We know everyone loves to attend and support our Maui County children. For more information regarding this event, we will let you know in the near future. Please stay tuned.
Bob Hansen PB R(B) Clint Hansen BIC R(B) Donna D. Hansen R(S) 808-283-9456 808-280-2764 808-280-1650 RB-17532 RB-21616 RS-49765
MAUI LUXURY REAL ESTATE LLC
The Hansen Ohana ~ Maui’s Real Estate Family for over 30 years