So.. How's the Maui Real Estate Market (Halfway through 2011)

So...How's the Maui Real Estate Market?

Everyone asks how the real estate market is doing and if we're at the bottom yet. While we don't have a crystal ball to answer that question, we do have some indicators.

The Real Estate market on Maui is more or less in holding pattern and there is evidence that buyer activity is on the increase. Looking at the whole island, for the past 12 months condo sales are pretty steady at 80 to 120 per month, and residential sales at 60 to 80 a month. So the market is actually in somewhat of a holding pattern; some months going up and some going down. Since we were selling 60 condos and 50 houses per month two years ago these numbers do show that the market has settled into a reasonable level and people are buying.

Prices however show a different picture. Residential prices appear to be holding while condo sales show greater activity in lower priced inventory. Median Prices for the first 6 months this year vs. last year. The last six months have show a slight increase on median prices in single family homes however- will this trend continue?

2010 2011

Residential $464,500 $429,000

Condos $424,000 $338,000

It's important to note that there are 551 active and 285 pending short sale or bank owned (REO)residential, condo or land listings which constitute 29% of all listings. Yet short-sale and REO sales represent 35% of all sales and are still rising with 256 sold in the past 3 months and 182 the prior three months. So we can expect these market drivers to continue to influence sales and pricing for some time to come. But again the effect is much more pronounced in the lower price ranges. As always take the news with an "discriminating nose", don't just brush the entire canvas with a broad stroke!

The good news is that interest rates are still at historical lows and people who were priced out of the market a few years ago can now buy a home.

However, it's no surprise that we are seeing a decrease in inventory. In the last 12 months we have seen a decrease of 12-20 percent in inventory. Remember folks we are also on an Island, we can only stretch so far. And a decline in inventory can possibly lead to an increase in prices. There may be a silver lining....

But with everything lately, there is also a caveat and that is the REO's and Shorts sales must be absorbed in order for us to return to a more normal marketplace.

With the new Act 48 that the state just passed. This may cause some delay in getting back to normal. Read about it here. Act 48.

Inventory of Active, Pending & Contingent listings:

The good news for sellers is that sales of low-end properties are brisk. High-end properties (over $1million) are seeing a definite increase in activity providing further indication that the market may be turning:

For sellers who need to sell their properties now, this means that at the right price, properties are selling. We may not be sure if this is the bottom of the bottom or if we're coming out of it, but when so many properties are a "great deal" we can safely say "there are opportunities to be had'!! As the market shows signs of "bouncing along the bottom", you need a great consultant to help you understand the specifics of our market.

Our real estate market is extremely specific to area, price range,even each condo complex. Because our classification of buyers are so diverse (first time homeowner, investor, foreign investor, second resort home buyer, etc etc), this creates a very unusual climate.

For more details or if you or anyone you know could use my services, please feel free to contact me by phone 808-276-1832 or email: Jeannie@Jeanniekong.com.

Mahalo and a hui hou...

Jeannie Kong, Realtor (S)