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So Maybe you don't want to sell.

This may not be the best time to sell your dream home or condo. I was talking to a man in Wailea, Maui who bought three condos in Flordia. He purchases them in 2005 and today they are worth half the price and he still can't sell them. Well don't panic, you have other options. If you are not under financial duress or your wife ran off with the towel attendant at your ocean front condo. Well maybe this is not a good time to sell. So here is my list of reasons and things to do while that market gets it act together.


7. give your home a Landscape makeover.
Well that's about it you get the idea. Take this time in the next couple years to get creative and resourceful. You might end up not wanting to sell. Go to Borders and pour through the magazines and borrow ideas from the experts. Well good luck and happy projects.
Steven Nickens R(S) GRI ABR
The Wailea Group LLC.
3750 Wailea Alanui, suite 5WE
Wailea, Maui, Hawaii 96753
Email: nickensmaui.com
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Maui Real Estate Advisor
Market Overview August
|
Aug |
Sales |
Sales Prior Month |
% Change |
Sales Prior Year |
% Change |
|
Homes |
65 |
96 |
-32% |
83 |
-22% |
|
Condos |
50 |
63 |
-21% |
115 |
-57% |
|
Land |
3 |
7 |
-57% |
10 |
-70% |
|
Aug |
Median Price |
Median Prior Month |
% Change |
Median Prior Year |
% Change |
|
Homes |
625,000 |
615,000 |
2% |
639,996 |
-2% |
|
Condos |
632,500 |
575,000 |
10% |
592,000 |
7% |
|
Land |
425,010 |
1,025,000 |
-59% |
662,500 |
-36% |
|
Aug |
Current Inventory |
Inventory Last Month |
% change |
Months of available inventory |
|
Homes |
1,092 |
1,069 |
2% |
11.38 |
|
Condos |
1,552 |
1,508 |
3% |
24.63 |
Sales slower still
Get ready for more of the same
It seems like the real estate market in most of the US is a buyer's market. Here on Maui sales of all kinds of property are slow, slow, slow.
But the prices, at least the median prices, remain as solid as this rock in the Pacific that we live on.
That doesn't mean there aren't deals. We are seeing an increase in the number of short sales and foreclosures, and a lot of sellers are "getting real" in the slow market.
It's a great time to buy.
Condo sales rebound slightly
Sales volume still well below "normal"
Those hoping for July's rebound to carry over to August were sorely disappointed. After a lackluster June and July, only 50 condominium sales were recorded on Maui in August. Compare that 50 sales to 115 one year ago and 187 in 2005.
In most markets that kind of sales decline coupled with rising inventories (we now have enough condos on the market to last for over 2 years at this sales rate) would surely result in lower selling prices.
But the median rose to $632,500. That is not only the highest price this year but it is the 3rd highest price since 2003. In June of 2006 the median price spiked to $649,000 and in November of 2007, the median came in at $640,156.
As usual, the devil is in the details. 17 of our 50 sales were in Wailea. The median price of the properties sold there was $2,350,000, and they were never in the MLS, so they show they were on the market zero days.
If we pull Wailea out of the stats, we see there were only 33 sales. The median for those condo sales was only $410,000, which is down $105,000 from the median in July with the same adjustments applied.
So maybe prices really are declining and are masked by the impact of Wailea. Maybe the "Wailea adjusted median", the WAM, will become one of our new sales metrics.
Area Sales
Condo sales in Wailea held steady in August with 17.
Kihei sales, however, slumped to only 15. That was down from 26 the previous month and 52 in August of 2007. The median sales price was also off by $95,000 compared to last year.
Once again only 8 sales recorded in Napili - Honokowai, the same as last month. That's down from 18 a year ago. The median price was up by about $11,000.
Kaanapali recorded 3 sales, but the median there was only $625,000, off by 57% from last year.
Kapalua recorded zero sales, and Lahaina had one distress sale.
High and Lows
For the third month in a row there were no sales at Harbor Lights. That trend won't continue, as I've seen one closing in September already recorded.
The lowest price paid for a condo this month was at Kihei Shores. It was a 2 bedroom, 1.25 bath. It was listed for $185,000 and sold for $185,000.
At $2,995,000, the spendiest condo was at Papali Wailea. The condo is a 3 bedroom, 3.5 bath. What I can tell you about Papali is that the project is nearing completion and they have a really annoying website that tells you nothing.
Potts' Picks - Best Buys
There are now 42 Harbor Lights on the market. They are the lowest priced properties on Maui by a good margin. Yet there were no sales for 3 months. There has been one sale registered for September, but there are no more pending. The reason? The lowest priced units are short sales.
Lending institutions and service companies are taking a very long time to respond on short sales. And if short sales, listed at very low prices, are on the market they make it hard for normal "market priced" non-short sales to move.
Twenty-eight of the 35 lowest priced condos in Maui are at Harbor Lights. Yet there have been no sales in the last 2 months, and there are no pending sales. We have a pretty good idea of what's going on. We'll give you some details next month.
Something that looks to be pretty affordable that you can live in is Iao Parkside IV-C. It is a 3 bedroom, 2 bath with 2 parking spaces listed at $329,000. It is #333241 in the Maui MLS.
For this month's best buy we are featuring a short sale at aina nalu. This one bedroom one bath originally sold for $475,000. It is on the market for $360,000. The unit is almost new, fully furnished and has very good rental income. See it at www.AlohaPotts.com at MLS #333469.
Our favorite upscale listing this month is at the new complex, Honua Kai. This is a large 2 bedroom unit near the front of the building with fabulous views. The price is only $1,399,000. Buying a resale at Honua Kai can be tricky, and you need an agent that knows what he or she is doing or you could have issues. You can see the full listing on our website, MLS #333517.
For more information on these or any other listings send an email with your request to lee@alohapotts.com or, see all of the listings on Maui at www.alohapotts.com.
Homes sales drop
August sales 2nd lowest this year
After a few good months, single family home sales declined to their lowest level since January.
Of the 66 homes sold, 32 were new project sales. Seventeen of the new project sales were classified as "affordable". So, there were only 34 resales, which means selling is very slow for folks that want to sell.
Overall the median price was up slightly to $625,000. That is the highest median price since January.
How can it be that in a market where sales are sinking median prices are still holding? More curious, although is makes statistical sense, is that median prices in Wailuku rose even though half of the sales there were "affordables".
Even more curious, is that if you remove the affordables from the mix the median price climbs all the way to $800,000.
There is a similar effect on DOM, Days on Market. With the new development properties in the mix the DOM is 161. Remove them and the DOM climbs to 195.
Could this be good news if you need to sell?
If you want to sell the oddly high prices in the rest of the market may present an opportunity for a serious seller.
Area Sales
The Central area of Kahului/Wailuku accounted for more than half of sales last month. Half of those were the aforementioned affordables.
No other market area had double digit sales. Kihei reported only 8 sales and the next highest area was Lahaina with 3 sales.
Highs and Lows
Aside from the affordables, the lowest priced home to sell was in Makawao. It is a 2 bedroom, 1 bath home of 864 square feet with a "non-conforming" ohana that sold for $390,000.
In Lahaina a 4 bedroom, 4 bath home of 3,844 square feet in the Launiupoko area sold for $3,400,000.
Potts' Picks
A new 4 bedroom, 1.5 bath came to market in Kihei at $432,000, and it's already had one price reduction. The new price is $386,000. This short sale property appears to be in pretty good condition and is in a good location. If you would like to see it the MLS # is 333228.
For luxury, how about 11,076 square foot home on Kaanapali Beach. That's right, 11,076 square feet; 8 bedrooms, 9.5 baths with pools and Pacific in your backyard. It's MLS #332824 and the asking price is a cool $23,800,000.
For more information on these or any other listings send an email with your request to lee@alohapotts.com, or see all of the listings on Maui at www.alohapotts.com.
Lot sales still slow
Inventory still rising
There are now 539 parcels of land for sale on Maui. Only 3 sold last month.
If you run the sales to inventory numbers on that you'll see that there are enough lots for sale to last roughly... forever.
For more information on vacant land, see all of the listings on Maui at www.alohapotts.com or send an email with your request to lee@alohapotts.com.
Get more information and details
To get more information on property and trends, you can search all properties listed for sale at www.alohapotts.com. If you can't find what you're looking for there, send us an email at lee@alohapotts.com, and we'll do our best to get an answer for you. As we get more requests for information, we'll add new sections to the website, newsletter or both.
About The Aloha Potts Team
Aloha Potts is a team comprised of L. Lee Potts, MBA, REALTOR® R(S) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. We are business people, and we treat our clients with the same care and service attitude that we would like to receive when we do business. We are in business for pleasure and profit. We expect that most of our clients will enjoy the property they own in Maui (pleasure), and it would be nice for everyone if your property performs well for you (profit). Real estate can be highly speculative, and profits are never guaranteed. So if you are buying property
in Maui, it's a good idea to surround yourself with a professional team.
Lee Potts is the former President of an international software company and former Marketing VP of a publicly traded franchise organization. Lee and Barbara are both licensed under Alohapotts.com Inc. in Lahaina and affiliated with Keller Williams Realty Maui, Kihei, Hawaii.
Barbara Potts was a CPA with Ernst and Young before joining Apple Computer back when both Steve's were there (Jobs and Woz). She was also Director of Strategic Marketing for Grass Valley Group, a division of Tektronix, and a business broker in California.
Copyright 2008 L. Lee Potts
Statistical information in this newsletter is based on actual sales information reported to the Realtors Association of Maui, Inc. While this information is deemed reliable, it is not guaranteed. This newsletter is for informational purposes only and not intended as advice for investment or any other purposes. Real estate is considered to be highly volatile, and purchasers and sellers of real estate should always seek expert outside advice before investing.
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I received an email (below) from Rosie Poree-Hogin ERA Pacific Properties, I think we should all pass the word.
When there's a big boulder in the road, it takes many of us to clear the path!
Stephanie
Aloha,
If you are as outraged as I am regarding the monthly increases in our electric bills then take some action.
I called the Maui Electric Co. to ask who takes complaints. The lady explained the Public Utilities Commission will not let the electric company raise the rates so they came up with the "Energy Cost Adjustment" charge.
When I called the electric company to find out who I complain to regarding the outrageous fees, the lady said she did not know who took complaints from the general public. She had no name, phone number or address, nada. Thanks for the help.
Well, here is the Web site with the information: hawaii.gov/dcca/areas/dca/complaint_form
You simply fill out the complaint and mail it in. I truly believe that if enough people start complaining maybe someone will step up to the plate and help the general public.
There is no reason why we are paying more for the energy cost adjustment than for the electricity that we actually use. But, if no one complains then it will be business as usual and we will continue to pay these outrageous electric bills that none of us can afford!
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Dear Diary,
What a busy week - with not much time for blogging or commenting here in the rain. But I got a few things checked off the weekend to-do list...
Of course this brings up a whole new blog to-do list...
I'm still quite pumped up about showing Wailea oceanfront properties in the $20,000,000 price range on Monday. There are some fabulous Wailea and Makena homes on the market right now. Thanks to the internet for that lead! Was it just a week ago I got that call?
The Honua Kai project in Ka'anapali is coming along nicely - on Wednesday we got to tour the Discovery Center and see a model unit. Then we went up to the 10th floor of the Ka'anapali Beach Club and got some awesome bird's-eye shots of the construction site.
It was great to reconnect with some past clients on Friday and show them some Maui homes for sale up in Pukalani and Kula. A pretty good selection, but there's still more to see. The first fairway home was undoubtedly the best of the bunch, with nice ocean and fairway views, fabulous upgrades on the well constructed home, and beautiful landscaping which made me drool. We might have to take another look at that one. On the other hand, the last one we saw had such wonderful bicoastal ocean views that it might be worth considering if the price was low enough.... the house needs a lot of work, definitely a Maui fixer upper. I need to find out more about this interesting property... we all had a good laugh about the closet within the closet, and the stunning views from the garage! There has to be a story here.

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Who's on First?
Every where you go people are looking for answers. You have people that you casually know coming up to you and asking what going on in the market and will we be okay. I finished work yesterday and headed down to Kanaha Beach for an evening windsurf session. When I was derigging my sailboard after a session. A group form Hood River Oregon was talking about when it will be safe to buy real estate again. Being the Realtor I am I jump into the conversation. Their feeling were middle of next year is going to be the opportunity to catch the bottom.
As the financial guru Warren Buffet says it's a great time to buy when people are running scared. Okay what ever. What I am seeing is people that are afraid for their future. The want to work and pay their bills. I do think this is a wake-up call for everyone. Yes the government and special interest got us in this mess. The average American has been living the lie also. Extended credit, buy it now; you deserve it so go get it. Well that is all coming to an end. We are going to have to be more resourceful and creative. Now if we can just get these Bozo's who represent our so called interest in government on the same page it would help. So my conclusion is cover your ass because the team is out to lunch.
Steven Nickens R(S) GRI ABR
The Wailea Group LLC.
3750 Wailea Alanui, suite 5WE
Wailea, Maui, Hi 96753
Email: nickens@maui.net