Fall in Maui is typically our slowest time for all things real estate. Fall is a time when inventory typically decreases on Maui. Fewer properties are listed and some sellers pull their homes off the market during the fall. This is our slow season for tourism and our slowest season for real estate. The reduced inventory is offset by reduced demand. Prior to last month, we had seen an overall trend of shrinking inventory. The number of properties for sale has dipped anywhere between 12% and 23% depending on the property type. There was a brief increase in inventory reported in July, but the reduction in inventory resumed again in August .
81 sales reported for August 2011 at a median price of $410,000. By comparison, there were 69 sales in August of 2010 at a median price of $460,000. This represents a 17% increase in sales volume and an 11% decrease in median price when comparing Aug. 2010 to Aug. 2011.
There were 86 condo sales in August 2011 at a median of $266,000. August 2010 numbers totaled 81 sales at a median price of $310,000. This translates to a 6% increase in sales volume and a 14% decrease in median price when comparing this Aug. with last Aug.
There have been 11 land sales reported in August at a median price of $180,000. This compares to 7 sales at a median of $387,500 during August of 2010. That translates to a 57% increase in volume and a 54% decrease in median price.
Short sales & Bank Owned Properties (REOs) are significant market drivers for Maui real estate. There were 55 REO sales and 19 short sales that closed last month. Of the 81 home sales, 42 were REOs or short sales. That is approximatley 52% of the home transactions. Of 86 condo closings, 30 were REO or short sales. That equates to roughly 35% of the total condo sales. Two of the eleven land sales were REOs.
Medians continue to come in lower than the 2010 monthly medians. The dip in medians is reflective of adjustments in value and a high volume of low priced closes driven largely by bank owned sales. August was a pretty big month for bank owned home sales with a total of 30 closes.
Condo volume for August of 2011 outpaced the volume for August of 2010 by a relatively small margin. There were 17 additional new developer closes for condos this month. These were all based on recent contracts. New condo developments are offering good incentives and compelling prices to stay competitive in a buyer’s market.
Land sales volume has been down this year overall, but August 2011 outperformed August 2010. The median sales price for land was down substantially when comparing August 2011 to August 2010. While we are seeing values slip in the land market, changes in medians do not mirror actual decreases in value.
The luxury market numbers have seen some pretty strong ultra luxury activity over the last couple of months. This August we saw 3 home sales over $6m including a new North Shore record of $9,600,000 for an ocean front estate in Spreckelsville. That means we have now seen new record high sales for the island, the North Shore, Kapalua & Wailea/Makena this year. The 3 sales over $6m in August of 2011 compares to one sale over that price in August of 2010. On the land front, there was a big sale upcountry with 236 acres closing for $6,250,000. This was the former Kula ‘I’o development that never quite got off the ground. Luxury condo sales were actually down a little this August compared to last year with 5 sales over $1.5m compared to 6 in 2010.
Two luxury condo sales closed at the low end. A Na Hale O Makena, a unit closed for $925,000. This was the lowest priced closing in the complex since 2003. There was also a Kapalua Ironwoods that closed for $1.1m. We have not seen prices at this level in 10 years.
What does this all mean for Maui’s real estate market? What can buyers and sellers expect? The data indicates that it continues to be a buyer’s market. Buyers may find the inventory limited in some market segments. There may also be strong competition for the best values that come to market. Sales above asking price are common among the best bank owned deals. Buyers who require financing should contact a mortgage professional to get pre-qualified before beginning their search. Interest rates are at historical lows. Sellers need to closely evaluate their particular market segment when developing pricing strategies. Most market segments are still seeing significant competition from bank owned properties & short sales. In the condo market, new development offerings can also be stiff competition for conventional sellers.
In these market conditions, it’s prudent to work with a knowledgeable realtor. Please contact Michele Muir White, R(S), ABR, SFR, Coldwell Banker Island Properties for all of your Maui real estate needs. 808.298.8448; firstname.lastname@example.org; http://www.MauiRealEstateGuru.com