Friday, July 8, 2011

Maui June 2011 Sales Statistics

Brief Maui Statistics Overview:

June’s Sales Volume – June’s Residential Sales rose to 81 homes sold, while Condo Sales declined to 101 units sold. Land sales came in at 13 lots sold.



June’s Median SALES prices – Home median prices rose to $429,000, while Condo median prices dipped to $295,000. Land median price rose to $299,000.



Days on Market for Residential homes = 141 DOM, Condos = 147 DOM, Land = 145 DOM.

(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD inventory sells, it can move this indicator upward, and vice versa. RAM’s Days on Market are calculated from List Date to Closing Date [not contract date]. As such, it includes approximately 60 days of escrow time.) Also – Short Sales transactions can often take 4-6 months to close thereby extending the

marketplace’s average DOM.



“Year to Date Sales” numbers only compare January-June 2011 to January-June 2010. Short timeframe (monthly) views do not necessarily reflect the longer timeframe trends.

Year to Date: Comparing January-June 2011 to January-June 2010 – Residential unit sales rose (+4%), average sold price = $732,569 (-4%), median price = $445,000 (-5%) and total dollar volume sold = $324,528,034 (-1%). This reflects the bump up last year due to 2009-2010 Federal Tax Credit programs and 2011 numbers will probably catch up as the year progresses. Condo unit sales decreased (-3%), average sold price = $527,534 (-30%), median price = $325,000 (-24%). Total Condo dollar volume sold = $340,259,146 (-33%).

Land – NOTE: Land Lot sales are such a small sampling that statistics in this property class are not necessarily reliable indicators. Land lot sales decreased (-3%), average sold price = $643,744 (+20%), median price = $315,000 (-30%), Total dollar volume = $44,418,351 (+17%).



Also, total sales for immediately past 12 months: Residential = 830, Condo = 1,125, Land = 124.



July 6, 2011 – Active/Pending/Contingent status inventory:

July June May April Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July

Homes 869 917 935 958 964 953 963 974 976 1,001 981 994 1,008

Condos 1,124 1,159 1,203 1,305 1,331 1,379 1,383 1,371 1,347 1,394 1,455 1,503 1,412

Land 515 532 547 554 557 566 569 601 596 601 620 604 601



Current Absorption Rate base on this month’s Active inventory divided by June Sales is:

Residential = 10.7 months, Condo = 11.1 months, Land = 39.6 months.



IN A NUT SHELL…… the good, the bad….. AND THE ROAD AHEAD ……

Strong buyer-showing activity is now evidenced in actual reported sales. Residential and Condo unit sales for March – June show sustained increase over the previous six months. The next few months will reveal if this is just an uptick or a trend that lasts. Inventories have declined 13-20% over the past 12 months. Many short sales and REO (bank owned) properties will need to be absorbed as sales before we can move ahead to a more normal marketplace. Interest Rates are remaining near historic record lows which may help motivate would-be Buyers to go ahead and buy IF they can qualify. Current World and US events will have ripple effects on cost of living, consumer confidence, and eventually our Real Estate Market.



FOR SELLERS: Sellers who don’t really need to sell (just “fishing?”) should stay off the market, and clear the marketplace for those who REALLY have to sell. UNLESS- you are motivated to Upsize, Downsize or Upgrade – While selling now will net less, your next property will cost less. Sharpen your pencil, talk to your CPA and 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. “Priced Right” is still the determining factor.



BEST Deals are selling, everything else is getting old.

Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage knowledgeable offers from realistic Buyers. This can prevent unanticipated escrow fallout or Buyers whittling your price down during the transaction when previously unknown facts come to light. Unrealistic Sellers continue to be ignored by the market and miss current opportunities that later become woefully apparent. They may even end up in a Short Sale or Foreclosure situation that could have been avoided.



FOR BUYERS: Low interest rates may start to inch up. Buyers should get Pre-Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans). More “short-sales” and foreclosures are happening 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 months) to close, if at all. Be prepared, but BE REALISTIC. Lenders are much more stringent in requirements for loan approval.



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.



This low point in the market is your rare chance, so check it out carefully.

Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to different conclusions that 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.



Information provided by the Realtors’ Association of Maui (RAM)

If you have any questions or would like specific information on a region of Maui or a particular complex or property please contact The Hansen Ohana directly to discuss your individual real estate needs and goals. (808)280-2764 or 1-800-291-5535

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