Billy and I were in San Francisco at the end of last week for a real estate technology conference. It was a great opportunity to learn more about how we can leverage technology to improve the home buying and selling process for our clients. The one downside is that it put me behind the eight ball to produce our usual “unofficial” Maui Real Estate Statistics post for the month of August. Alas, the Realtors Association of Maui (RAM) beat us to the punch by releasing their “Official” July Maui Real Estate Statistics today. Since RAM already released their numbers, I am posting something of a hybrid between my usual official and unofficial posts. Here are some of the key numbers followed by a few thoughts on the Maui Real Estate market.
RAM reported 71 home sales in July at a median price of $491,000. Last July, there were 68 sales at a median price of $394,500. That is a 4% increase in homes sold and a 20% increase in median prices.
RAM tallied 73 condo sales in July at a median price of $320,000. The July 2011 numbers were 98 sales at a median price of $320,000. That calculates to a 26% reduction in volume and of course no change on medians.
The land sales numbers for July were 11 sales with a median of $450,000. Last July, RAM reported 14 sales at a median of $340,000. That translates to a 22% decrease in volume and a 32% increase in median price over last year.
RAM’s official stats also included an update on the overall inventory numbers. RAM reported 690 homes for sale on the Maui MLS as of this morning. Last August, there were 871 homes for sale. That is a 21% drop in listings. As of earlier today, there are 915 condo listings on the market. Last August, there were 1,120 condos on the market. That is an 18% drop in inventory. There are currently 444 land listings on the market. Last year at this time, there were 531 lots listed for sale. That is a 16% drop in the number of properties available.
Looking at all the numbers above, the inventory figures struck me the most. The decrease in inventory has been occurring for the better part of two years, but we really started to feel the impact in just the last few months. The inventory has thinned significantly in lower priced market segments. This has resulted in some modest price increases for Maui’s lowest priced condos and homes. Other segments closer to the market median are seeing the potential for price increases. Those segments are seeing a few sales going above recent comparable sales with others at or below comparable sales. Well priced properties are frequently receiving multiple offers shortly after going to market. Willing and ready buyers are finding themselves playing a waiting game for inventory that fits their needs. Any substantial increases in inventory are going to be driven by increases in bank owned properties or short sales. The significant number of home sellers underwater are constraining conventional inventories. This is a phenomenon that we are seeing throughout the U.S. real estate market.
What does it mean for buyers and sellers? Buyers are still going to find good opportunities in this market, but it will require patience and a quick trigger finger when the right opportunity comes along. Cash helps in competitive bidding. Buyers who will require financing should be pre-approved prior to looking for properties. Pre-approval will give you a better sense of what you can afford and offer. It also bolsters your offer by giving a seller some assurances that you can perform. Sellers will find an interesting market. While we are seeing improving conditions in some segments, other parts of the market have significant inventory. Sellers will need to look closely at recent comparable sales activity when determining their go to market prices. Whether you are considering buying or selling Maui Real Estate, the need for quality, professional representation is especially important with these dynamic market conditions. Contact the Maui Real Estate Team today for a free consultation. We look forward to the opportunity to earn your business.