Yesterday, I searched through our MLS to get a sneak peak at the July Maui Real Estate Statistics. I was curious to see how this month’s sales stacked up to last year after the June statistics showed the slowest volume we had seen in over five years. There may be some small differences between what I report and the official statistics that should come out later this week. The official numbers may catch a few additional sales that have yet to updated on the MLS. Here is a quick rundown on the numbers.
In July, there were 93 homes sold at a median price of $600,000 and an average of 182 days on market. This compares to 2007 numbers of 86 homes sold with a median price of $650,000 and an average of 146 days on market.
Condo sales were a little more sluggish with 62 sales at a median price of $571,500 and an average of 199 days on market. This compares to July 2007’s 99 sales at a median price of $510,000 and 161 days on market.
Land continues to sell at a slow pace. There were just 7 properties sold with a median price of $1,025,000 and 202 days on market. This compares to the July 2007 numbers of 13 sales at a median of $575,000 and an average of 147 days on market.
I wanted to give a few thoughts and observations on the month’s stats. I thought I might start with land for a change. I haven’t given much commentary on land due to limited demand. The median price for land is certainly an eye catching number so I think that merits some explanation. This month’s sales were notable in that there were a few high end estate type closes and there was also a large parcel zoned industrial that closed. That is what is skewing the numbers up rather than any increase in land values. We are seeing more price adjustments in land as sellers adjust to the rather limited demand. July 2007 started this period of limited demand as we have seen sales volume in the teens and single digits since that time.
The condo sales volume has taken a pretty significant plunge from 2007 numbers. These numbers are not as drastic as June’s statistics, but they appear to suggest that June is part of a trend and not an anomaly. Demand is shrinking for condominiums despite price adjustments in almost all segments of the condo market. I think the tourism slow down is playing a part in the decrease in sales. We saw visitor numbers drop due to the economy and the airlines. Less visitors mean fewer potential buyers. Those that are making it out to Maui may also be slower to purchase with current economic uncertainties.
The housing market on the other hand had a relatively strong month with sales volume bumping up over 2007 numbers. New project sales were particularly strong this month as a lot of home buyers are taking advantage of price cuts, financing and buyer’s incentives offered by some of the larger home builders. The ultra luxury portion of the market continues to see pretty strong demand as there were two more closes of more than $8,000,000 this month. The homes in Makena went for $8,650,000 and $10,500,000 respectively.
I tend to comment on sales volume with these numbers more than median prices. As I have mentioned in previous discussions on Maui Real Estate statistics, median numbers can be skewed due to smaller sample sizes. I can comment based on my own observations that prices are continuing to adjust down in all but the very highest price points in the market. In general, the same home or condo is worth less now in 2008 than it was in 2007. How much of a difference tends to vary pretty widely across the board, but the low end of the market is seeing the greatest decreases. Buyers will find that there are lots of opportunities on the market due to increased inventory and motivated sellers. Sellers will need to price at or better yet below recent comparable sales to increase their odds of attracting buyers.
I will publish the official stats on THE Maui Real Estate blog a little later this week. These numbers will give you a little more granularity and a chance to look at how individual communities are stacking up year to year and month to month. In the interim, please feel free to contact us with questions or for assistance with your Maui Real Estate needs.