Maui Real Estate Blog

Maui Bank Owned Property Inventory

In our monthly unofficial and official real estate statistics blogs, I have spent a fair amount of time discussing the inventory of properties on the market. Maui has seen the number of properties listed for sale dip almost 20% since last year. This has been a trend across the board for the last 18 months. There had been rumors that inventories might get a boost via a surge of bank owned properties hitting the market this summer. The thought process was that banks had worked through the issues created by their robosigning practices. As a result, they would be able to release more of the bank owned listings that they had been withholding from the market. Anecdotal evidence from the summer suggested that the anticipated new bank owned inventory never came to fruition. I decided to go beyond the anecdotal evidence and look at the numbers. Here is what I found.

The number of bank owned listings coming on the market in Maui County on a monthly basis

The chart above shows the number of bank owned properties coming on the market each month in Maui County between January of 2010 and last month. During 2010-2011, the new bank owned inventory ranged between 30 and 70 new listings per month. During 2012, the bank owned inventory topped out at 34 new listings per month. This summer, those number have shrunk to between 15 and 17 listings. It’s pretty clear there was no summer REO bump.

At this point, it is tough to say if and when we are going to see any upticks in bank owned inventory. Many of the properties facing foreclosure are going through the judicial process. Judicial foreclosures take a minimum of 14 months. It also appears that banks are embracing short sales as an alternative to foreclosures. Bank of America has been proactively reaching out to borrowers who are delinquent on their mortgages and encouraging short sales. They have gone so far as to offer cash incentives to help with moving expenses to facilitate sales. This is likely to curtail the total number of future bank owned properties. If we see any real upticks in bank owned activity, we will keep you posted on the Maui Real Estate Blog.

Pete Jalbert

Maui Real Estate Blog

Official August 2012 Maui Real Estate Statistics

Last week, the Realtors Association of Maui released their “official” August Maui Real Estate Statistics. There isn’t a whole lot of data new to report above and beyond what we provided in our unofficial statistics earlier in the month. The one metric that I continue to follow closely is the inventory of homes, condos and land for sale. As it stands, decreases in inventory continued in both the home and land market. The condo market saw a slight uptick in inventory.

The overall decrease in inventory has caused a scarcity of property in certain segments of the Maui market. The inventory below the market median is particularly scarce. It will be interesting to see what happens this Fall. We have been anticipating more bank owned properties. Could that finally be coming to fruition? There appear to be some anecdotal evidence that there are more bank owned properties coming on the market. That may be worth another blog post in the next couple of weeks to explore if the uptick is real or perceived. In our own office, we have listed a few properties in the last two weeks with a few more forthcoming this week. It is worth remembering that fall is also the slowest time of year for the Maui Real Estate Market. Decreased demand may provide some opportunity for inventory to replenish. We will continue to monitor inventory dynamics on The Maui Real Estate Blog. Contact The Maui Real Estate Team if you have questions on the market or need assistance buying or selling Maui Real Estate.

Pete Jalbert