While Residential and Condo unit sales declined typically from December 2013, the Median and Average Sales Prices rose significantly compared to December 2013 or January 2013 (same-month-a-year-before). The highest January Home Sales Price was $11,900,000 and the highest Condo Sales Price was $3,900,000. Looks like the Maui Real Estate market got over many of the fears of 12-15 months ago (Mayan Calendar End-of-the-World, Fiscal Cliff, Sequestration). Confidence in the Future breeds Investment in the Present.
January's Sales Unit Volume – Residential sales declined to 64 homes sold while Condominium sales decreased to 93 units sold. Land sales came in at 13 lots sold.
January's Median SALES prices –The Residential and Condo median prices increased to $691,500 and $437,000 respectively. Land median price came in at $370,000.
Days on Market, Residential homes = 130, Condos = 122 DOM, Land = 91 DOM.
(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD
inventory sells, it will move this indicator upward, and vice versa. RAM's Days on Market are calculated
from List Date to Closing Date [not contract date], including approximately 60 days of escrow time.)
WARNING!! "Year to Date Sales" numbers compare only one month, January 2014 to January 2013. Shorter time frame (monthly) views do not necessarily reflect the longer time frame trends. Big percentage changes may be misleading or misunderstood. Be Careful.
Residential unit sales increased (64 homes sold / +1 unit / +2% change YTD), average sold price = $1,371,304 (+93%YTD), median price = $691,500 (+26%YTD) and total dollar volume sold = $87,763,445 (+96%YTD). Condo unit sales increased (93 units / +30 units / +48%YTD), average sold price = $686,988 (+68%YTD), median price = $437,000 (+47%YTD). Total Condo dollar volume sold = $63,889,901 (+148% YTD). Land Lot sales are such a small sampling that statistics in this property class are not necessarily reliable indicators. Land lot sales increased (13 lots / +6 units / +86% YTD), average sold price = $836,154 (-19%), median price = $370,000 (-45%), Total dollar volume = $10,869,999 (+50% YTD).
Total sales for immediate past 12 months: Residential = 983 (with 18.2% being REO or Short
Sale), Condo = 1,370 (9.7% REO or SS), Land = 226 (9.3% REO or SS).
Current Absorption Rate base on this month’s Active/Pending-Continue to Show/Contingent
status inventory divided by January Sales is:
Residential = 10.7 months, Condo = 9.5 months, Land = 31 months of inventory.
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IN A NUT SHELL...... Sales Unit numbers seesaw, Inventory growing due to rising Prices ……
Year-to-Date prices are rising. Increased showings and sales, multiple offers on “well priced” listings,
hesitant buyers become onlookers…... Window of opportunity is quickly closing for first-time
homebuyers (see below). Well priced properties are attracting multiple offers making for a quick sale. Inventories in Residential and Condo classes are increasing somewhat as Sale Prices increase. REO (Foreclosures) and Short Sales are dwindling, with any “hidden inventory” (or overhang) backlog slowly trickling onto the market. Mortgage Interest Rates are inching up slightly which may help motivate would-be Buyers to go ahead and buy IF they can qualify.
Savvy Investors are buying with Cash. While general U.S. economic news looks cautiously hopeful, current
World and US events will have ripple effects on cost of living, consumer confidence, Financial and Real Estate Markets. Rising Sales prices cause some “Owners” to become “Sellers,” putting their homes on the market.
FOR SELLERS: Sharpen your pencil, talk to your CPA and your Realtor® to explore the hidden benefits
or consequences. Make no assumptions that will sting later. To be successful, Sellers need to beat competing properties with better property condition, REALISTIC pricing, good marketing, and flexible, creative terms (Seller Second Loan, Agreement of Sale, Lease-with-option-to-buy, and Sale-with-lease-back to seller). Days on Market figures show that properties priced right will sell in a reasonable timeframe, often with multiple offers. “Priced Right” is still the determining factor. BEST Deals are selling, while significantly over-priced listings remain un-sold. Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage realistic offers from knowledgeable Buyers. This can prevent unanticipated escrow fallout or Buyers whittling your price down during the transaction when previously unknown facts come to light.
FOR BUYERS: Low interest rates prevail; however have started to nudge up. Buyers should get Pre-
Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans).
"Short-sales" and foreclosures are still in the marketplace, yet they can be less of a bargain than they seem, requiring more hurdles to leap and more time (often 4-6-12 months) to close, if at all.
Be prepared, but BE REALISTIC. Lenders are much more stringent on requirements now for loan approval,
compared to 2004-2008. First-Time Home Buyers – Many programs are available….. Attend a First-Time Home Buyers workshop, get familiar with the process, get qualified/approved, do your homework to get your own home. Many current owners never thought they would be able to own until they attended a workshop, discovered they could own a home, and are glad they did. The low point in the market has passed, so check it out carefully NOW, don’t delay. The opportunity is fading quickly. If you can’t buy now, start saving your down payment for the next market cycle.
Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to different
conclusions that looking at the overall view. Maui's market place is much smaller than Oahu's, and a few high or low sales have a greater effect on the statistical numbers without necessarily indicating a big market swing one way or another.
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