Category: Uncategorized

Comparison of Maui Real Estate Sales Volume for September 2011 and September 2012

75 homes sold in Maui County during September. The median sales price was $425,000. By comparison, the September 2011 numbers were 80 homes sold with a median sales price of $412,000. That is a 6% decrease in volume and a 3% increase in median sales price when comparing the two Septembers.

65 condo sales in Maui County last month with a median sales price of $339,563. During September 2011, there were 83 condos sold at a median of $334,900. That calculates to a 22% decrease in sales volume and a 1% increase in median price.

11 land lots sold in Maui County during September with a median sales price of $238,000. The totals for last September were 12 parcels of land sold with a median price of $330,000. That is an 8% drop in volume and a 28% drop in median sales price.

Some notes to consider:

• There were a total of 16 bank owned (REOs) properties sold last month. Most of them were single family homes. By comparison, there were 48 REO properties sold last September. That is a 66% decrease in REO sales volume.
• There were 29 short sale closings last month. During September of 2011, there were 15 short sale closings. This is a 93% increase in short sale activity.
• There was one luxury home sold on Maui this September for over $2m. Last September, there were six sales over $2m.
• The luxury condo market had four transactions over $1,500,000 during September. In September 2011, there was one condo sold over $1,500,000.
• The highest sale on island last month was $2.9m for a residential condo in Launiupoko.

As you can see, there is a huge decrease in bank owned sales. Most likely in direct relation to Act 48, a bill intended to reform the foreclosure process in Hawaii. From the day the law passed, non-judicial foreclosure, the preferred methods for mainland banks to rapidly foreclosure on distressed homeowners, was killed. I believe that it has also encouraged lenders to work with sellers/borrowers in the short sale process. While bank owned sales are down, short sales were up almost 100% over last year. Banks are becoming more cooperative on short sales.

What does this all mean for buyers and sellers? Buyers are continuing to find good values, but constrained inventories among many property types require buyers to obtain pre loan approval. Buyers need to remain proactive so that they can submit offers quickly when the right property comes along. Get pre-approved before you start looking. It will determine your budget and give you a strong position when you submit an offer.

Sellers will need to closely analyze their property segment when determining current market prices. While some segments lack inventory, other segments have inflated inventory.  Sellers need to price well. Well priced properties are getting interest. Overpriced properties are languishing.  Contact Michele Muir White R(S), ABR, SFR, Coldwell Banker Island Properties (808) 298.8448, [email protected] if you need assistance buying or selling Maui real estate.

 

 

RAM reported 71 home sales in July at a median price of $491,000. Last July, there were 68 sales at a median price of $394,500. This is a 4% increase in homes sold and a 20% decrease in median prices.

73 condos sold in July at a median price of $320,000. The July 2011 numbers were 98 sales at a median price of $320,000. That calculates to a 26% reduction in volume.

Land sales numbers for July were 11 sales with a median of $450,000. Last July, RAM reported 14 sales at a median of $340,000. This translates to a 22% decrease in volume and a 32% increase in median price over last year.

RAM’s official stats also included an update on the overall inventory numbers. RAM reported 690 homes for sale on the Maui MLS as of this morning. Last August, there were 871 homes for sale. That is a 21% drop in listings. There are 915 condo listings on the market. Last August, there were 1,120 condos on the market. This is an 18% drop in inventory. There are currently 444 land listings on the market. Last year at this time, there were 531 lots listed for sale. This is a 16% drop in the number of properties available.

The decreasing inventory has been prevalent for the better part of two years, but we are really starting to feel the impact in just the last few months. The inventory has thinned significantly in lower priced market segments. This has resulted in some modest price increases for Maui’s lowest priced condos and homes. Other segments closer to the market median are seeing the potential for price increases. Those segments are seeing a few sales going above recent comparable sales with others at or below comparable sales. Well priced properties are frequently receiving multiple offers shortly after going to market. Willing and ready buyers are finding themselves playing a waiting game for inventory that fits their needs. Any substantial increases in inventory are going to be driven by increases in bank owned properties or short sales. The significant number of home sellers underwater are constraining conventional inventories. This is a phenomenon that we are seeing throughout the U.S. real estate market.

What does it mean for buyers and sellers? Buyers are still going to find good opportunities in this market, but it will require patience and a quick trigger finger when the right opportunity comes along. Cash helps in competitive bidding. Buyers who will require financing should be pre-approved prior to looking for properties. Pre-approval will give you a better sense of what you can afford and offer. It also bolsters your offer by giving a seller some assurances that you can perform. Sellers will find an interesting market. While we are seeing improving conditions in some segments, other parts of the market have significant inventory. Sellers will need to look closely at recent comparable sales activity when determining their go to market prices. Whether you are considering buying or selling Maui real estate, the need for quality, professional representation is especially important with these dynamic market conditions. Contact Michele Muir White R(S), ABR,SFR, Coldwell Banker Island Properties, Wailea (808) 298-8448 (e-mail: [email protected]) today for a free consultation.

 

 

86 homes sold in Maui during June of 2012 at a median price of $575,500. By comparison, the June 2011 numbers were 81 sales at a median of $429,000. That is a 6% increase in volume and a 34% increase in median price when compared with last year.

121 condos sold on Maui during June of 2012 with a median price of $373,990. The June 2011 numbers were 102 sold at a median of $294,500. That translates to a roughly 19% increase in volume and a 27% increase in median price when compared with last year.

There were 13 land transactions in June 2012 with a median price of $310,000. By comparison, the June 2011 land sales numbers were 14 sales at a median of $302,000. That translates to a 7% decrease in volume and around a 3% increase in median prices compared to last June.

Last month saw the purchase of 98% of the land area of the island of Lanai by Larry Ellison, CEO of Oracle, at an undisclosed purchase price. We have heard rumors that the sale was $500 million.

The Maui real estate market has seen the impact of the real estate downturn through price reductions, decreased sales volume and an increase in short sale and bank owned property (REO) transactions. There were a total of 50 REO and short sale transactions last month. Of the 86 homes sold, 25 were REO or short sales. That is roughly 29% of the sales volume. Of the 121 condos sold, 23 were REOs or short sales. That is 19% of the sales volume. Two of the thirteen land sales were bank owned.

The big news for June was the the purchase of 98% of Lanai by Larry Ellison. Lanai is one of the three inhabited islands of Maui County. The island was at one time primarily owned by Dole Pineapple. In 1961 Castle and Cook bought out Dole and unveiled plans to transform the economy from an agricultural economy to a vacation / luxury resort economy. In 1985, billionaire David Murdock acquired Castle and Cook and continued the makeover. The Four Seasons Manele Bay and the Four Seasons Lodge at Koele are the primary economic drivers for Lanai which has been hard hit by the recession. It will be interesting to see what will happen with the Lanai Real Estate market which has really struggled over the last few years. There are two segments to that market with the residential housing of Lanai City and the resort residences around Koele and Manele. My guess is that the added publicity may help boost sales volume of Lanai’s second home properties. We are all waiting to see what Larry has planned for Lanai.

Currently the former estate owned by Reverend Robert Schuller in Haiku is for sale.  This exquisite property boasts 39 acres, has a main dwelling with 10 bedroom and 10 bathrooms and is 9613 sf.  The secondary dwelling is 3 bedrooms and 3 baths and is  1853 sf.  There is also a cottage and caretaker’s quarters. The homes’ finishes are grand and the property boasts a gorgeous heated pool, sauna, tennis courts, panoramic ocean views and manicured grounds. Estate is being sold partially furnished. Located near the charming town of Paia and only minutes from Mama’s Fish House and renowned wind surfing capital of the world, Ho’okipa Beach Park makes it truly ideal. This rare offering is an enduring legacy for a family compound. A tropical retreat, formally known as the Baldwin estate that is second to none. Expansive Pacific ocean views and impeccable grounds with trees from all over the world offering a peaceful secluded haven all year round. Pure original Hawaiiana architecture throughout with attention to detail completes this magnificent estate.  Property is currently listed for $11,900,000

For all of your Maui real estate services, please contact Michele Muir White R(S), ABR, SFR, Coldwell Banker Island Properties, Wailea.  (808) 298.8448.  [email protected]  Access the Maui MLS via my website:  www.MauiRealEstateGuru.com

 

61 homes sold in May 2012 at a median price of $382,500. May 2011, 71 homes sold at a median price of $418,000. This is a 14% drop in volume & approximately a 9% drop in median price.

112 condos sold at a median price of $334,500 for May 2012. May 2011, 114 condos sold at a median price of $349,500. This is less than a 2 percent drop in sales volume and a 4% drop in median price.

There were 17 sales in May 2012 at a median price of $330,000. By comparison, there were 15 sales reported at a median price of $275,000 in May of 2011. That is a 13% increase in volume and a 20% increase in median price when comparing this May to last May.

We are still seeing significant impact from bank owned sales (REO) and short sales. There were a total of 49 bank owned and short sale transactions last month. Of the 61 homes sold, 22 were REOs and shorts. This is approximately 36% of the volume. Of the 112 condos sold, 24 were REOs or shorts. This is 21% of the transaction volume. Of the 17 land sales, three were bank owned.

May is another month where sales volume has under performed compared to last year.

Inventory is low and the luxury condo market is an area where we have seen an a bigger reduction in sales volume. Sales volume is off 56% when you compare the number of condos sold over $1,500,000 through the first five months of this year with the first five months of 2011. This segment has not been impacted by reduced REO inventory. This segment has been mostly devoid of bank owned properties. We have seen a small reduction in new development inventory. The upscale Hoolei complex is almost sold out. Most of the premier units at Honua Kai have sold. We aren’t seeing a similar reduction in the luxury home market. Sales volume this year is within a few percentage points of last year.

What does this all mean for buyers and sellers? Buyers will continue to see opportunities in this market. That being said, most of the good opportunities are attracting multiple offers. Buyers should be prepared to act quickly.  Buyers that require financing should obtain financing pre-approval. Sellers will need to monitor recent comparable sales when pricing their properties so that they area competitive. Overpriced properties aren’t selling.  Please contact Michele Muir White R(S), ABR, SFR Coldwell Banker Island Properties, Wailea 808.298.8448, [email protected] (www.MauiRealEstateGuru) with questions regarding Maui’s real estate or for assistance buying or selling Maui properties.

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, [email protected] (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.

There were 80 residential sales for March 2012 at a median price of $432,500. That compares to 89 homes sold in March 2011 at a median of $450,000. This reflects a 10% dip in volume and a 4% dip in median prices when comparing this March to last March.

There were 128 condo sales last month at a median price of $370,000. By comparison, there were 124 condos sold at a median of $289,000. This represents a 3% increase in volume and a 28% increase in median prices for March 2012 over March 2011.

21 land sales closed at a median price of $455,000. Last March, there were 10 sales reported at a median of $517,500. This is a healthy 110% increase in sales volume and a 12% decrease in median price.

Maui’s Real Estate market continues to be impacted by the sale of REOs and Short Sales. There were 66 bank owned or short sale closes on Maui last Month. 80 homes that sold, 34 were REOs or Short Sales. This reflects 42.5% of the sales volume. 128 condos that sold, 30 were REOs or Short Sales. This is 23% of the condo sales. Of the 21 land sales that closed, 2 were REOs. There were four bankruptcy sales among the 21 closings.

Land sales volume really stands out for the month. Wondering what has driven the market resurgence and is this a sign of increasing stability in the land market? We are seeing sellers adjust their pricing to levels where they attracting buyers. There is still between 4 and 5 years worth of land inventory on the market so we have quite a ways to go before we see any dynamics in place that would substantially raise values.

The condo market produced the second most notable numbers for the month with a 28% increase in median over March 2011. This does not mean that condo values have increased 28% over the last year. The biggest reason behind the change relates to where the sales are occurring. During March of 2011, most of the sales were lower priced bank owned properties. This year, there is less bank owned inventory and tighter entry level inventory. This has led to some modest price increases for some entry level condos.

While lower priced activity has slowed due to lack of inventory, we have seen more activity in the middle ranges of the condo market. The increase in middle range sales is helping to push up medians. Buyers appear to be responding well to new development properties with 30 sales that were new developer offerings last month. Much of this new development activity is happening in the middle price ranges of the market. We are also seeing a little more activity in the middle market of the second home & vacation rental market. This is part of a national upswing on vacation rental properties & second homes. Canadian buyers continue to have an impact as currency exchange remains favorable. While the middle market has been stronger, the ultra luxury condo market is off a little over last year. There were 4 sales over $1.5M this March compared to 7 sales last March.

The dip in home sales numbers may just be a reflection of monthly variability. The Maui market appears to be making some strides to a slow recovery.We are rapidly approaching the end of peak buying season on Maui which should lead to a decrease in demand. On the other hand, inventories are tightening in some areas.

For those of you that are contemplating entering the Maui real estate market, my advice remains the same. Buyers will still be able to select from properties priced well below peak market values. The best opportunities can be competitive with multiple offers and above asking sales prices on some of the better values. With that in mind, buyer’s who need financing should take the time to get pre-approved with a local bank before submitting offers. It is best to get approval with a bank with experience lending in Hawaii. Buyers should be prepared to move quickly when they see properties that meet their needs. Sellers will still find that there is competition via lower priced REOs, short sales and motivated conventional sellers. Sellers who have the means should address deferred maintenance and other issues that could deter buyers. If you are interested in buying or selling property on Maui, contact Michele Muir White R(S), ABR, SFR, Coldwell Banker Island Properties (808) 298.8448, email: [email protected] for market knowledge, professionalism and responsive service with aloha.

 

February was a pretty good month for Maui Real Estate. There was strong volume in pending sales.

There were 78 home sales with a median price of $513,750. By comparison, the February 2011 numbers were 59 sales at a median of $440,000. That is a 32% increase in volume and a 17% increase in median.
There were 81 condo sales at a median price of $287,000 for February. By comparison, the February 2011 numbers were 98 sales at a median price of $371,200. There was a 17% decrease in volume and a 23% decrease in median price.

12 parcels of land sold at a median price of $333,925. That compares to 7 sales at a median of $282,500 in February 2011. That is a 71% increase in sales volume.

Short sales and REOs remain a significant component of the monthly transaction volume. There were 54 closings that were either bank owned or short sales last month. 29 of 78 closings were REOs or shorts. That is 37% of the volume. 24 of 81 condos were REOs or shorts. That is just under 30% of the total sales.

We continue to see variability in our monthly real estate stats. Last month, condo sales outpaced January of 2011, while homes and land sales lagged. This month the opposite occurred. If you are expecting consistency in our recovery, you may be disappointed. It reflects the statistical variability you often see with smaller sample sizes.

Last month, there were fewer REO transactions and an increase in short sale transactions. The same scenario occurred this month. It appears that banks are becoming more and more cooperative when it comes to short sales. This means more successful short sale closings. There are still large number of properties where sellers are underwater and need to sell.

The luxury real estate market statistics were interesting. There were 5 luxury home sales over $2M compared to only 2 last February. The condo market was the exact other end of the spectrum with no sales in February over $2M. The highest condo sale was $1,323,000. Last February, there were 6 sales over $2M.

My message to buyers is that you need to be prepared when you are ready to buy. Buyers should be pre-approved in advance and be prepared to make strong offers. Well priced properties are selling for or in some cases above list price. As your price point increases, competition begins to wane with smaller buyer pools. Higher priced properties with tight inventory or fewer quality properties to choose from may also see competitive bidding. Sellers still need to look closely at recent comparable sales when trying to determine how to best price their properties. Overpriced properties just aren’t getting nearly as many showings in this market. Market conditions make good representation more important now than ever. Please contact Michele Muir White R(S), ABR. SFR today if you need assistance buying or selling Maui real estate. 808.298.8448 [email protected]

 

49 homes sold at a median price of $408,000. By comparison, there were 54 homes sold in January 2011 with a median price of $495,414. This is a 9% reduction in sales volume and an 18% reduction in median price when comparing January 2012 to January 2011.

88 condos sold in January 2012 with a median sales price of $339,500. 87 condos sold in January 2011 at a median price of $295,000. This is a 1% increase in volume and a 15% increase in median price when comparing January 2011 to January 2012.

8 land sales closed in January 2012 at a median price of $330,000. This compares to 9 lots sold at a median price $300,000 in January 2011.

The Maui Real Estate market continues to be impacted by Short Sales and Bank Owned Properties (REOs). Of the 49 homes sold, 18 were REOs or Short sales. This is approximately 37% of the sales volume. By comparison, 47% of January 2011’s home sales were REOs or shorts. Of the 88 condos sold last month, 27 sales were either REOs or Short Sales. This is 31% of the transaction volume. This compares to January 2011, where 37% of the condo sales were REOs or short sales.

The numbers comparing this January with last January were fairly comparable. Bank owned transactions were down and short sale transactions were up slightly, probably in response to ACT 48.

Overall market conditions have not changed drastically.

My continuing advice to buyers and sellers remains the same. Buyers will find that this is a good time to buy as there are some well priced opportunities. Keep in mind that the best opportunities are attracting strong competition. Buyers should be prepared to act quickly and with strong offers when pursuing the best opportunities. Patience may be needed as inventory is beginning to wane. Buyers should be pre-approved for financing prior to submitting offers. Sellers in this market will need to keep their pencils sharp. Those who want to sell quickly should look closely at recent comparable sales and price and list at/or below those numbers. Please contact Michele Muir White R(S), ABR, SFR (808) 298.8448, [email protected] if you have any questions or just want to chat about Maui Real Estate and/or any buying or selling opportunities.