Prospective Maui home buyers who are concerned with the economic health of the island should be happy to hear that Hawaii’s unemployment rate dropped to 4 percent in December, compared to 4.7 percent in the same month in 2013. The rate is seasonally adjusted, and the information comes from the state Department of Labor & Industrial Relations.
Concerned with how Hawaii measures up to the rest of the country? The national unemployment rate was 5.6 percent in December, so we are distinctly better off. The good news for the nation is that unemployment dropped by 1.1 percent compared to December of 2013, which is a more substantial change for the better. The more those numbers improve, the better the implications for the visitor industry, and therefore, Maui’s economy.
The visitor industry isn’t the only one thriving, although it does get a lot of attention. According to Colliers International Hawaii, commercial real estate transactions are actually booming at this point. The market had a record-breaking year in 2014 with $4.5 billion in transactions. The previous record was $4.3 billion. There were a total of 235 transactions in 2014. For reference, 40 percent of those were in the resort/golf/hotel category and 30 percent were in the retail category.
On the list of the five largest transactions, the sale of the Wailea Beach Resort Hotel came in third. We should see some interesting things from this beautiful oceanfront South Maui property, which sold with a $325.7 million price tag. Colliers expects 2015 to be a bit more modest, with 225 transactions over $1 million for a total of $3.8 billion so far.
We hope you’ve found this blog informative and enjoyable! As always, if you need assistance, you can find our contact information at the bottom of the page. Mahalo for reading this week!