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Official February 2011 Maui Real Estate Statistics

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Last week, the Realtors Association of Maui released their official sales statistics for February 2011. There were a couple of sales that were reported after I released my unofficial Maui Real Estate Statistics. Two additional condo sales were included in the official stats raising our number of sales to 95 for the month. As usual, the official stats also include some data at the community level and commentary from RAM executive Terry Tolman.

When we post these official stats, the one part of Terry’s commentary that we hone in on is the total monthly inventory. Condos and land inventory both decreased again last month, while home inventory was up slightly. Looking back to last year, the inventory is down almost 15% for condos. Home inventory is down 8% from the same time last year. We have talked about the importance of a reduction in market inventory as a path for prices to stabilize. We are seeing some substantive reductions. That being said, a prospective buyer commented on the our last official stats about how a reduced inventory will have an adverse impact on his own buying time line. He is finding less quality inventory to choose from in the segment of the market that he is targeting. In turn, this buyer indicated he was planning on waiting. I thought this was an interesting perspective. Regardless, it appears that total inventory and quality of inventory is going to be an increasing market dynamic. Contact the Maui Real Estate Team with questions or for assistance buying or selling Maui Real Estate. Of course your comments are always welcome below!

3 Responses to “Official February 2011 Maui Real Estate Statistics”

  1. Jeremy Stice says:

    Huh that’s is definitely an interesting perspective- inventory is diminishing, prices are approaching the proverbial “bottom”, interest rates are rising, Maui is looking more valuable on an international level every day so you are going to sit and wait…doesn’t make much sense to me.

  2. Pete Jalbert R(S) says:

    Aloha Jeremy, Thanks for your comments. You make a compelling case to buy. That being said, I think I did a poor job conveying the other perspective. This buyer and a few others I have talked to have been frustrated with the quality of the inventory in the segments of the market where they want to purchase. They view the lack of choice as their obstacle to purchase more so than pricing or any other variables. I

  3. Marisco says:

    As painful as it is to sellers of real estate, I believe we really need to shake out all the bubble appreciation, to get back to a sustainable real estate market. That probably means over-shooting 2001 nominal prices. Interest rates are being held down artificially in an attempt to buoy prices, and prevent home price deflation. The only intervention that interrupted the downward spiral was the tax credit, but its effects were temporary. We have now double-dipped below the May 2009 low nationally, and judging by the steep curve of Corelogic’s and the Case Shiller’s charts, the downward trend will continue into the foreseeable future.

    There has been a lot of frustration for both FTBs who faced stiff competition from cash investors, and buyers who cashed out waiting for a true bottom. The stand off between sellers and buyers may be another factor in stalling a return to normalcy, but I don’t believe that encouraging sellers to wait for a more opportune moment will do anything other that postpone the inevitable. I am seeing comments among the buying community that support the view that inventory levels are low in some areas and within a certain price range. I have also read reports in the media from both Realtors and economists who say efforts to prevent a punishing free fall in the high end are real. There appears to be quite a lot of evidence that suggests lenders’ preparedness to allow defaulters indefinite grace periods. How much the high end is favored in this respect is hard to gauge.

    One reason for the poor quality of inventory referred to is possibly because homes that have major flaws are just sitting and have bottle-necked. The expectation among buyers in a buyers’ market is going to be high, and you’d expect compromises to be made only where inventory is low due to restrictions on new builds.

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3/14/2011

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