We are a little late getting out our monthly real estate statistics for July. Like most Maui residents, I spent a good portion of last week readying for the two hurricanes that were approaching from the East. Iselle hit the islands on Thursday and Friday. Fortunately, she brought relatively limited damages to Maui. The second storm Julio is slated to pass to our North tomorrow with little or no impact on Maui. Now that the threat appears to have passed, it is time to get back to work and back to blogging. There is no better way to get back in the saddle than with our monthly stats post. We give a look at sales volume, median pricing and other notable number from the July Maui Real Estate Sales activity. We also give our thoughts on some of the more notable numbers, a look at the pending real estate sales in July and some thoughts for buyers and sellers. Without further ado, here are the numbers.
July Maui Real Estate Sales Volumes and Median Prices
There were 98 homes reported sold in July with a median price of $537,000. That was up compared to July of 2013 when there were 93 sales at a median price of $475,000. That calculates to a 5% increase in sales volume and a 13% increase in median price.
There were 82 condo sales last month with a median price of $387,500. Last July, there were 112 sales with a median price of $357,625. That is a 27% drop in sales volume and an 8% increase in median volume.
There were only 9 land sales reported in July of 2014 with a median price of $425,000. By comparison, there were 13 sales reported in July of 2014.
Other Noteworthy Numbers from the July Maui Real Estate Market Activity
These are some of the other noteworthy numbers from the July Real Estate sales on Maui.
- The high sale was $8,050,000 for an estate on one acre across the street from the ocean in Makena.
- The Makena sale was one of six homes that closed for over $2,000,000 last month. The other sales were in Kahana, Wailea, Launiupoko, Kihei and Ka’anapali. It was an equal split with three sales in South Maui and three sales in West Maui.
- The high condo sale for the month was $4,800,000 for a three bedroom at the Montage Residences in Kapalua. Montage has taken over the management of the former Ritz Carlton Residences in Kapalua. Montage has put their own touches on what may well be the nicest physical plant of any condo on Maui. The combination of a great facility and Montage management has made for a compelling offering for luxury condo buyers. We will have a little more on Montage Kapalua in an upcoming post on the Kapalua Real Estate Market.
- The Montage sale was one of 4 condos sold for over $1,500,000. There was another sale at Montage, a Ka’anapali Ali’i and a Sugar Cove condo up in Spreckelsville that all closed.
- This is the first time we have seen less than ten land sales in a month dating back to January 2013. Of note, the 9 sales included two commercial lots and three parcels of land priced for $1,000,000 ore more.
- There were 11 bank owned sales last month. That is up over the 7 bank owned sales last year. We are continuing to see a modest uptick in Bank Owned Activity with 19 new bank owned listings coming on the market in July.
- There were only 7 short sales completed last month compared to 20 last year. More sellers are in a better equity position and the end of tax breaks are likely to be the two biggest contributing factors in the diminishing number of short sales.
Numbers that stood out from the July Stats
For the second consecutive month, the condo sales volume was the most eye catching number of the statistics. This is now three months in a row where sales were significantly lower than the same month last year. As mentioned last month, we are surmising that price increases and diminishing inventories at lower price points have helped slow the condo sales totals. There are just fewer and fewer options below $200,000, an area of the market that saw quite a few sales last year. One thing that is worth noting is that we are seeing a slow down in the number of sales in the low and mid $200,000s as well and it isn’t due to lack of inventory. Last year, we saw rapid appreciation among entry level condos geared towards owner occupants and long term renters. Some of these condos came up 60% or more from the bottom of the market. The appreciation was fueled in part by limited inventory. Now that many of those same condos have crossed the $200,000 value barrier, more sellers have come on to the market. A big growth in inventory and unsustainable rates of appreciation are allowing buyers to be more choosy and slowing down market momentum.
As mentioned above, we are seeing more bank owned inventory coming on the market. It is worth noting, that the bank owned listings haven’t proven to be the best values lately. A couple of years ago, bank owned properties typically had shorter days on market. They were priced below recent comparable sales making them a sought after commodity with buyers. It is clear that most banks have changed their pricing strategies in a rising real estate market. Many of the bank owned listings are coming on the market above recent comparable sales. I thought it was noteworthy that of the 38 bank owned properties that have come on the market in the last two months, only 2 have sold and 11 have gone pending. One of those sold properties was sold prior to being listed on the MLS.
July Pending Sales
On the Maui Real Estate Blog, we like to keep an eye on the number of properties that went under contract in the last month. That gives us some sense of what type of sales figures we may see in the next couple of months. It also gives us a better sense of current market demand.
One bit of good news is that the number of pending condo sales is higher for July of 2014 than July of 2013. That would suggest we may be seeing an end of the recent condo sales slump. While land sales were off last month, it appears that we may see a bounce back in either the August or September sales with an increase in the number of pending properties compared to last year.
What Buyers and Sellers Can Expect Under Current Market Conditions
Maui continues its long term trend of sustained appreciation in real estate values. That said, the rate of appreciation and market conditions vary throughout the island based on both geography and price point. Entry level home buyers will find that they are searching in the most competitive part of the market. Well priced entry level homes in good condition are selling quickly and garnering multiple offers. Buyers in this segment should seek pre-approval from a lender if they are going to require financing. Buyers will need to move quickly if they identify a property that they like that will fit their needs. There are other higher priced pockets of the market where similar decisive action may be required by buyers. It all depends on the scarcity of inventory and demand in that particular market segment. Buyers should work closely with a Realtor to get a better sense of the current market conditions relevant to their interests. While conditions are favorable for sellers, sellers should look closely at competitive inventory and recent sales when developing a go to market price. As more sellers are coming on the market, rates of appreciation are slowing. That makes it easier to overprice a property. Contact The Maui Real Estate Team for assistance buying or selling Maui property. We would welcome the opportunity to sit down with you for a free consultation and to discuss your real estate needs.