There were 64 home sales in February with a median sales price of $550,000. By comparison, there were 79 sales during February 2012 with a median sales price of $492,500. This means a 19% drop in activity compared to last year with a 12% increase in median prices.
There were 100 condo sales in February of 2013 with a median price of $364,950. By comparison, there were 83 condos sold in February 2012 with a median price of $287,000. This is a 20% increase in activity over 2012 with a 27% increase in median prices.
There were 12 land sales with a median sales price of $575,000. The February 2012 numbers were 12 sales with a median price of $575,000.
Some other stats worth mentinoning:
The highest sale for a single family residence was $4,750,000 (for a 5,018 sf home in Wailea Golf Vistas).
This sale was 1 of 4 single family homes that sold for more than $2m last month. By comparison, there were 5 sales for $2m in February 2012.
The highest condo sale was $4,196,500 for a beachfront three-bedroom at Coconut Grove in Kapalua. (I love this Coconut Grove property. 36 gorgeous villas situated on Kapalua Beach.) This was 1 of 2 condo sales over $1.5m. By comparison, there were no condo sales over $1.5m last February.
There were 9 bank owned sales last month. There were 28 bank owned sales in February 2012. This is a 68% decrease in bank owned sales activity. There were 15 short sales, whereas there were 26 shorts sales in February 2012 . This is a 43% drop in short sale activity.
There was a huge surge in condo sales towards the end of 2012. Some of this was driven by sellers wanting to close in 2012 due to uncertainty over taxes in 2013. Last month, we had a few straggling condo sales. The condo market rebounded in February with a healthy bump in activity. I am predicting a continuation of strong sales for condos over the next couple of months as we finish out our peak visitor and real estate season. The two factors most likely to constrain sales are economic uncertainty due to the sequester and reduced inventory. There is more demand than there is supply when it comes to moderately priced condos on Maui.
The single family home market did not fare as well this month compared to last year. Most Maui communities are seeing tight inventories particularly when it comes to price points below $600k. Last year, there were 625 sales in Maui County under $600k. There are currently only 103 properties active for sale in this range. Based on last year’s absorption rate, that is just under 2 month’s supply of inventory. There is even less inventory in the lower price brackets.
The lack of inventory on the low end is also having an impact on median prices. Fewer lower priced transactions means a higher median sales price. Last February, 40% of the transactions were priced below $400k. This year, that number dipped to 33% of the transaction volume. There may also be some upward movement in median pricing due to price increases. The limited inventory of homes is helping to lift up pricing in the lower and middle ranges of the market. The upward price movement is greatest were supplies are most constrained. Many financed transactions are having a tough time with appraisal if the purchase price is much above recent comp sales.
So, what does this all mean for Buyers and Sellers? Inventory remains the driving force in the market. Buyers who are looking in areas of tight inventory can expect a highly competitive market place.As I have repeatedly advised in the past, if you require financing, get pre-approved for your loan. Sellers are looking for strong buyers. And this means you must come to the table with strong representation and an agent with keen negotiating skills.
Contact Michele Muir White R(S), ABR. SFR, Maui Real Estate Guru, Coldwell Banker Island Properties, 808.298.8448, firstname.lastname@example.org if you are considering buying or selling property on Maui. I welcome the opportunity to meet and discuss your real estate needs with you.