The real estate market in South Maui has generally been very, very slow since the first of the year. But the real story is more complex than that.. Top-tier oceanfront homes and new oceanfront condominiums are still being heavily sought. Four large beachfront homes have closed so far this year for a total of nearly $50 million and per square foot averages of over $2500.. New oceanfront condominium projects like Wailea Beach Villas and Maluaka have obtained very good receptions. Lower-end homes in Wailea have been relatively busy with seven in escrow thus far this year. Those are the bright spots. Condominium sales in Wailea and Makena in established complexes have been very, very slow. Less than ten condominiums have gone into escrow this year, approximately half of last year's numbers. Inventory is over 100 units for sale. That represents 12 months of sales at 2006's sales rate and considerably more at the sales rate thus far this year. We are seeing an increasing number of price reductions in Wailea. But the news is worse in Kihei. There is simply way too much inventory for the sales pace. Units in escrow now have frequently accepted prices below recent comparable sales. We suspect that trend may continue. Wish we had better news.

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