79 home sold during April of 2012 with a median sales price of $469,000. 87 homes sales close during April 2011 with a median price of $488,000. This is a 9% decrease in volume and a 4% decrease in median when comparing 2012 to 2011.
128 condos sold last month with a median price of $399,000. This compares to 120 sales with a median price of $336,102 for April 2011. This is a 7% increase in volume and a 19% increase in median price.
8 lots sold during April 2012 with a median price of $365,000. By comparison, there were 14 sales at a median of $382,500 last April. This is a 43% decrease in volume and a 5% decrease in median value.
REOS & Short Sales: There were a total of 53 bank owned or short sales that closed during April of 2012. Of the 79 homes sold, 24 were REOs or short sales. This reflects 30% of the sales volume. Of the 128 condos sold, 29 were REOs or shorts. This reflects 23% of the total sales volume. There were no bank owned or short sale land saes in April. It is also worth mentioning that there were more short sale closings than REO closings this month. This is something of a recent trend that I believe is directly related to the fact that banks & asset managers appear to be working with sellers who are in trouble on their loans rather than letting the properties get foreclosed.
The decrease in REO sales and the relative strength of short sale transaction volume also relfects a reduction in the REO inventory. Banks appear to be more willing to negotiate short sale transactions than they have in the past. That has led to the shift where short sale transaction volume is equal or greater than bank owned closings.
Home and condo sales were very similar to March. As with March, condo volume is slightly outpacing last year’s totals while home volume is down slightly compared with last year. While land sales saw a brief surge last month with 20 closings, April’s closing declined to a dismal 8 sales. Lending is still tight on land sales.
My advice for buyers and sellers entering the Maui real estate market is based on price point and property type. This month’s official Maui real estate market stats released by the Realtors Association of Maui reflect that home, condo and land
inventory shrank across the board. The inventory at the entry level of the market is extremely tight and buyers entering this market will find prices below peak prices. There is also limited inventory which is leading to upward price adjustments and competitive bidding. All buyers who require financing should obtain loan preapproval to compete as bidding may be fierce and moves quickly. The luxury market is still a market where inventory is higher and you will find more of a true buyer’s market.
Sellers will need to closely evaluate their segment of the market place prior to listing. Sellers at the lowest priced segments of the market will find a ready pool of buyers. In the market segments where buyers are fewer, sellers need to look closely at recent comparable sales when determining their price point for market entry. Sellers should also be aware of recent changes to the Hawaii Purchase Contract. Sellers now have greater disclosure obligations that are further incentives to perform home inspections and/or surveys prior to listing.
Contact Michele Muir White, ABR SFR, Coldwell Banker Island Properties Wailea 808.298.8448, firstname.lastname@example.org (www.MauiRealEstateGuru.com) with questions regarding market conditions or for assistance with buying or selling Maui real estate. Michele is a Coldwell Banker ® International Sterling Society Award recipient.