The Realtors Association of Maui recently released its 2007 Maui sales statistics with a quick overview from Chief Staff Executive Terry Tolman. As I have mentioned in other blog posts, Maui real estate statistics can be deceptive. Our sample size is small enough that month to month statistics can fluctuate drastically due to releases of new developments and other factors. That being said, there were a few interesting items to be gleaned from the year end stats. Volume of sales was up for homes on Maui as was dollar volume. Condos were off last year’s numbers in terms of volume, but median prices went up. Land sales volume, dollar volume and median pricing were all down. These stats speak to a market that has slowed from its peak, but is still seeing pretty solid numbers of transactions.
One thing the stats do a poor job of illustrating is the varied strength of our market by price range. The luxury market as a whole was very strong. There were 24 sales on the island in excess of five million dollars. We saw a new high sales price for a Maui home at $19,200,000 for an oceanfront property in Makena. We also saw record high sales prices for Kapalua and the North Shore. The highest ever sales price for a Maui condo came in at $10,200,000 for a unit at Wailea Beach Villas. Other parts of the market cooled off from 2006 levels. Condos that prohibit vacation rentals continued to slide in price following a trend that started in 2006. For most of 2006, vacation rental condos held their ground on pricing. We also saw a decrease in volume in this segment of the market as some buyers were reticent to pay the prices that sellers demanded. We did see more sellers adjusting their expectations as the year came to a close. Home sales under $1,000,000 also tended to see some price depreciation. Contact us for more information on specific markets within Maui.
It will be interesting to see what 2008 brings for the Maui Market. We can not completely distance ourselves from the liquidity issues and the subprime fall out on the mainland. That being said, we are weathering the downturn better than many of the other markets that saw big gains during the first half of the decade. Hawaii’s foreclosure rate is one of the ten lowest in the country. The weakness of the American dollar is also bolstering our market. We have seen strong interest from International buyers. We wish we had a better crystal ball that would allow us to predict what the rest of the year will bring. The only certainty is that it should be an interesting year for Maui Real Estate. We will continue to provide coverage and discussion of the market on The Maui Real Estate Blog.