Maui housing prices, reality or bubble?

Here is an example of what you can expect to find in the $650,000 price range in kihei, Maui. I use Kihei as a control market as I know the town. It is home to the most full time residence on Maui as well as jobs. It is the largest populated area on the island and has the most realistic housing market, relatively speaking.

Price: $659,000 MLS: 323260 Fee Simple

Type: SF w/Det Ohana or Cottage

Status: ACTIVE
District: KiheiAddress: 63 Eleu Place

Bed: 3Bath: 2.00

Living Area: 1,104 SF

Land Area: 10,051 SF

View: Other

Ohana Bed: 2

Ohana Bath: 1

Ohana Living Area: 600 SF

If this looks like an extreme axample check out the MLS yourself.
Realtors Association of Maui MLS
http://www.mauiboard.com/index.html


I have also noticed a number of properties in the $2 million and up range coming onto the market over the last four months. It’s been said that this group of well heeled homeowners won’t be affected by a housing market downturn. So then why the sudden appearance of so many of these pricey properties for sale at what I'm calling the top of this market?
That is the question…
Vern