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, firstname.lastname@example.org if you need assistance buying or selling Maui real estate.