Maui May 2011 Sales Statistics
Brief Maui Statistics Overview:
May’s Sales Volume – May’s Residential Sales declined to 70 homes sold, while Condo Sales declined to 111 units sold. Land sales came in at 14 lots sold, unchanged from April.
May’s Median SALES prices – Home median prices declined to $421,500, while Condo median prices rose to $349,000. Land median price dipped to $275,000.
Days on Market for Residential homes = 138 DOM, Condos = 199 DOM, Land = 175 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: Comparing January-May 2011 to January-May 2010 – Residential unit sales rose (+4%), average sold price = $732,560 (-5%), median price = $450,000 (-2%) and total dollar volume sold = $262,989,019 (-2%). 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 (-4%), average sold price = $524,454 (-33%), median price = $325,000 (-24%). Total Condo dollar volume sold = $283,729,505 (-35%).
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 (-11%), average sold price = $564,471 (+13%), median price = $315,000 (-41%), Total dollar volume = $35,200,351 (+1%).
Also, total sales for immediately past 12 months: Residential = 827, Condo = 1,130, Land = 120.
May 11, 2011 – Active/Pending/Contingent status inventory:
June May April Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June
Homes 917 935 958 964 953 963 974 976 1,001 981 994 1,008 1,007
Condos 1,159 1,203 1,305 1,331 1,379 1,383 1,371 1,347 1,394 1,455 1,503 1,412 1,423
Land 532 547 554 557 566 569 601 596 601 620 604 601 591
Current Absorption Rate base on this month’s Active inventory divided by May Sales is:
Residential = 13.1 months, Condo = 10.4 months, Land = 38 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 – May 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 somewhat over the past 12 months and include many
short sales and REO (bank owned) properties which 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.
For specific questions or to discuss the market in more detail please contact The Hansen Ohana any time at (808)879-3667.
