Well, the whales are heading back north and that means our high tourist season is about to wane. That also means our first quarter of 2015 ends and numbers are in, so lets decipher the Maui Real Estate Data we’ve compiled.
MAUI SINGLE FAMILY RESIDENCE (First Quarter 2015)
Median Sales price rose 2% compared to year-to-date last year.
Current YTD Median Price is $599,000. Year ago YTD $ 585,000
Current YTD number of sales rose by 12%
Current YTD is 220 sales. Year ago YTD was 195 sales.
Highest notable sale was 3070 South Kihei Road for $14,500,000. Beachfront home built in 1999. On world famous Keawekapu Beach. Interestingly enough this home was listed in the fall of 2014 for $17,000,000 and sold prior to list at $14,500,000 and closed on March 11, 2015 for cash. Click here for more info.
Unit Number of Homes sold by price range.
$500,000 and under: 65
$500,001 – $750,000: 82
$2,500,001 and up: 09
Central Maui had the most homes sold at 69 , then Kihei at 49 homes.
19 of the homes sold were REOs. (10 YTD 2014)
7 of the homes sold were short sales. (14 YTD 2014)
CONDOMINIUM (FEE SIMPLE AND LEASEHOLD)
Median sales price rose by 8% when compared to same time last year.
Current YTD Median Price is $440,000. Year ago YTD $ 406,375
Current YTD number of sales declined by 3%
Current YTD is 300 sales. Year ago YTD was 310 sales.
Highest Notable sale was Montage Residence Unit 1505 in Kapalua for $4,600,000. Buyer financed the property. Click here for more info.
Unit Number of Condos sold by price range.
$250,000 and under: 60
$250,001 and 500,000: 119
$500,001 – $750,000: 53
$2,500,001 and up: 10
Kihei had the most sold condos with 103 units. Then came the Napili/Kahana/Honokowai area with 46 units.
16 Condos sold were REO’s (6 YTD 2014)
6 Condos sold were short sales. (16 YTD 2014)
Median sales price rose by 7% when compared to same time last year.
Current YTD Median Price is $532,000. Year ago YTD $ 497,500.
Current YTD number of sales declined by 3%
Current YTD is 39 sales. Year ago YTD was 40 sales.
Kihei had the most lots sold at 7, then came Central Maui with 5.
Highest Notable sale was 0 Baldwin Avenue (corner of Baldwin and Haliimaile Rd). 133.7 acres with no water and potential to subdivide. Click here for more info.
Days on Market on Maui: Residential homes = 123, Condos = 109, Land = 275.
The current absorption rate of properties are Residential (8.9 months), Condominiums (8.8 months) and vacant land (25.7 months). If you list a house priced in the 500K range in good condition, watch out, there will most likely be multiple offers. Not only residents bidding but also second home owners and investors.
In a nutshell… by Realtors Assoc. of Maui( Chief Staff Executive) Terry Tolman…… Monthly Residential and Condo Unit Sales numbers bounced up and down the last few months, with Residential and Condo Inventory increasing during the Winter Vacation (High Season)
The Canadian investors have been a large presence in Maui’s real estate market, however the current Canadian Dollar exchange rate (.80 US $) may motivate Canadian investors to sell, not buy.
There is a noticeable bifurcation of the Market Place right around the $1,000,000 mark. Properties listed just under $1,000,000 faster, those that are $20-60,000 over are slower to sell, even with similar condition and on the same street. Obviously more people can afford a less expensive home; however there seems to be a buyer resistance to crossing that 7 digit threshold (sellers take note).
2014 Year-to-Date Median and Average prices were rising across the Residential, Condo and Vacant Land markets despite lower number of unit sales (YTD). January-February 2015 took a break from that trend; however that may catch up as we proceed through the rest of the year.
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).
“CASH is King!” when making an offer. For several months approximately 41% of all sales were CASH.
Well priced properties are attracting multiple offers making for a quick sale. Inventories in Residential and Condo classes grow 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, giving them a strong negotiating position, no financing/appraisal hassles and a quick closing.
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. 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 and are predicted to rise later in 2015. 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 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.
“IN THE FIELD SUMMARY”: We work with buyers and sellers everyday. Through your years of experience we know there is more to the picture than just numbers, especially on Maui. Maui is part resort town, island life and entrepreneurship (from tech to small agribusiness to fashion- a myriad of creatives). So with all that Maui caters to- the working class to professionals to the ultra wealthy and/or famous and everything in between, the motivating and driving factors in real estate vary. From one condominium or subdivision to the next it has varying rates of growth. Why does one condominium complex changed hands so frequently while other rarely come up for sale. Why are prices rising so fast in one area and not the other? Numbers and data simply can’t be the whole picture. You have to know/work with the sellers and buyers to understand the full picture. Call us for specific analysis of your area or property of interest.
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.
Mahalo and a hui hou…
Jeannie Kong REALTOR(S)
Maui Real Estate Advisors, LLC
161 Wailea Ike Place A-102
Wailea, Maui, HI 96753
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