Maui Real Estate Blog
Weekly Maui Real Estate Update December 16th
The title of this post is something of a misnomer. I last posted an update almost a month ago. That is a reflection of current market conditions. More time showing property and less time time to blog. Being that it’s been a while, this will be a bulked up post. I wanted to give a quick update on market conditions over the period when I didn’t post. I will also have specific details on market activity for the seven day period between December 2nd and 8th.
Catching Up on The Market
With your resident blogger slacking over the last four weeks, here is a higher level overview on the market dynamics through the end of November. These are some of the key points on recent market activity.
- Pending sales activity dipped slightly for the three weeks prior to December 2nd-8th. After averaging 60 plus weekly new pending sales for 7 straight weeks, weekly new pendings over this period dipped into the high 50s. While not as robust as October, this is still pretty strong demand. A lack of inventory at lower price points isn’t helping sales numbers.
- Sales are pretty strong. In August and September, weekly sales numbers were fluctuating quite a bit. Recent numbers are more consistent. This is a reflection of the higher number of properties that went under contract earlier in the fall..
- Home inventory remains tight. There was slight growth in the number of new home listings during the last three weeks of November. That said, buyers shopping at or below the median sales price didn’t see a lot of new listings. It is also worth noting that the luxury home inventory is tightening with really limited offerings available in places like Kapalua.
- From June-September, we saw a lot of new condo inventory come to market. The increase in inventory slowed in October and it slowed even further in the last three weeks of November. There was a net decrease in inventory over that time.
- The luxury market is particularly strong. Employees are taking advantage of their employers work from anywhere edicts during Covid-19. We are seeing an influx of high income earners relocating to Maui. We are seeing market dynamics we have never seen before in the high end property market. Short days on market and multiple offer situations were unheard of until the last few months. We also are seeing more activity than usual in the $10,000,000 and above market.
Now that you are caught up a little on recent market dynamics. Let’s get to the numbers from our most recent seven day tracking period.
This Week’s New Pending Sales
Maui Realtors reported 60 new pending sales over the seven day period between December 2nd and 8th. This is a modest 3% increase over the seven days prior. It is 13% more activity than the same seven day period of 2019.
Notable Numbers from This Week’s Pending Sales
- The 60 new pending sales include 34 homes, 22 condos and 4 lots.
- This is the first time in six weeks that new home pending sales outpaced new condo pending sales. It is the most new weekly home pending sales since late September.
- This is the first time in four weeks that weekly pendings went back above the 60 mark.
- The 22 condo pending sales included 12 vacation rental condos.
- There are 6 new pending sales priced over $2,000,000 for the period between the 2nd and the 8th. They include 4 homes, 1 condo and 1 lot.
This Week’s Closed Transactions
Maui Realtors reported 54 sales during the 7 day period between December 2nd, and December 8th. That is 5% fewer sales than the seven days prior. It is 32% higher than the same seven day period of 2019. Of note, there were 7 transactions that closed for over $2,000,000. Six of the seven properties sold are located in West Maui.
Weekly New Inventory
Maui Realtors listed 66 properties between December 2nd and December 8th. That is 14% higher than the seven days prior. It is 8% higher than the same seven day period of 2019.
Of the 66 new listings, 28 are homes. That is the highest number of homes listed in a seven day period since late September. The median price of the new home listings comes in at $905,000. While that is a lower median than quite a few recent weeks, it is still a pretty high number for those looking for properties at lower price points. Due to the high number of pending sales between the 2nd and the 8th, the inventory of active home listings decreased.
Between December 2nd and December 8th, 32 new condo listings came on the market. With only 22 condos going under contract over the same period, the inventory of active condo listings increased.
Maui Realtors listed 6 lots between December 2nd and the 8th. That represents a slight increase of inventory with only 4 lots going pending over the same period.
Contact The Maui Real Estate Team
These posts speak in pretty broad brush strokes about the island’s real estate market. In reality, there is still some variability in market conditions by town, neighborhood and price point . Contact The Maui Real Estate Team to discuss market conditions in an area of the island specific to your interests. We welcome the chance to talk, zoom or e-mail and learn more about your real estate needs.
Maui Real Estate Blog
Unofficial October 2012 Maui Real Estate Statistics Part I
October came and went quickly on Maui. It was an eventful month on the island with beautiful weather, big waves, a tsunami scare and the rollicking antics of Halloween on Front Street in Lahaina. It also happened to be an eventful month for the Maui Real Estate Market. Typically, October is slow season for the Maui market. It is one of our quietest months for visitors. Fewer visitors mean fewer potential real estate buyers. It is usually a good time for Realtors to stretch their legs a little before the start of peak buying season in late December. That is a far cry from what we have experienced this October. The Maui Real Estate Team has been running all over the island showing properties. Listings that were previously quiet are getting showings and offers. It feels like there has been a shift in the market. Based on the above, I am going to do something a little different for this month’s unofficial Maui Real Estate Statistics. In addition to the usual data on properties that have sold, I wanted to take a look at some of the buyer activity in October for properties that may not have closed yet. There was actually enough data to support two blog posts. This first post looks at sales volumes, medians and a few other numbers that caught our eyes among the October sales. The second part of the stats will take a look at current market activity and our overall thoughts on the market. Without further ado, here is part I.
By my count, there were 95 homes sold during October with a median price of $489,000. Last October, there were 74 homes sold at a median price of $482,500. That translates to a 28% increase in volume and a 1% increase in median price when comparing this October to last.
Thus far, there have been 94 condos reported sold in Maui County this October with a median sales price of $482,500. By comparison, there were 77 condos sold with a median price of $351,495 in October 2011. That means we saw a 22% increase in sales volume and a 37% increase in median price compared to last October.
Land sales remained slow on island last month with only 7 sales reported with a median sales price of $345,000. This was slightly lower than October 2011 activity when 8 sales were reported at a median price of $465,000.
Looking through the stats, I came across a number of other numbers that I thought were worthy of sharing.
- There were 16 bank owned properties sold last month. Most of those were single family homes. By comparison, there were 40 bank owned properties that closed in October of 2011. That is a 60% drop in bank owned transactions. Limited bank owned inventory means that we will continue to see fewer bank owned sales.
- October was the busiest month for single family housing sales of 2012. It was the slowest month of the year for land sales.
- There were 25 short sale transactions that closed in October. There were 33 short sale transactions that closed last October.
- The highest sale for a home this month was $3,142,730 for a 5,126 square foot home on 2.35 acres in the Plantation Estates area of Kapalua.
- That was one of three sales in Plantation Estates. That’s a pretty healthy number of sales considering there were only 19 sales in the subdivision dating back to 2003. Also of note, those are three of the four lowest sales prices for the subdivision. It appears that value is driving volume in this luxury community.
- Overall Luxury sales were slower this month. The three home sales over $2,000,000 was below the seven sales over $2,000,000 last October. There was only one sale of $1,500,000 in the luxury condo market. By comparison, there were five over $1,500,000 during October of 2011.
There are several notable details worth discussing in this month’s numbers. I want to start with the luxury numbers before moving on to some bigger picture numbers. On the luxury real estate front, we saw slower activity for home and condo sales this month. The lower luxury sales volume reflects the continuation of a trend in the Maui luxury property market over the course of 2012. For the year, there have been 35 homes sold over $2,000,000. That compares to 44 sold last year over $2,000,000 for the same period. That is roughly a 20% dip in activity. For the Maui luxury condo market, there have been 31 condos sold year to date over $1,500,000. That compares to 60 sold during the January through October 2011 period. That represents a 48% dip in activity. While the overall Maui market appears to be trending up, the luxury market is lagging. I think the properties that were sold in October were representative of a recurring theme among this year’s luxury buyers. The Kapalua Plantation Estates sales were all luxury values. While there are still some luxury buyers willing to pay a premium, many are still seeking value above all else.
As with last month, there was a decrease in the number of Bank Owned or REO properties that sold compared to what we were seeing in 2011. We wrote last month about how the pipeline of REO properties has been decreasing on Maui. For all of October, there were only 13 new bank owned listings coming on the market. That was the lowest total to come on the market as of yet. We spoke with two agents who list a lot of the REO properties and both indicated that their pipelines were looking pretty dry for the foreseeable future. While it was surmised that the shadow inventory may provide us some relief on the inventory crunch, that just doesn’t seem to be the case right now. It appears as though many of the properties that are in the foreclosure pipeline are in some sort of legal limbo.
The decrease in bank owned inventory has been part of a general decrease in inventory. In my unofficial September statistics, we documented a decrease in sales activity. I offered the theory that the decrease in sales was driven in part by the lack of inventory. Based on our own anecdotal evidence and discussions with other Realtors, there are quite a few buyers looking who haven’t been able to find properties or are coming up short in bidding wars.
So what happened this month? One of the most notable numbers from the October stats is that home sales were higher than any other month of the year. While condo sales weren’t as notable, they still showed quite a spike over the September numbers. What caused the bump? Was I wrong on my theory that buyers not finding what they want was keeping sales numbers down? Has there been a bump in inventory that helped quench some of the buyer demand? What’s happening with the market? Read Part II of our Unofficial October Maui Real Estate Statistics.