My predictions are holding true. The market is UNBELIEVABLE! The Maui residential market is stabilizing and the condo market is seeing tough times. While prices of condos have remained relatively stable, the number of condos sold last month plummeted to a 5+ year low. In June last year, 112 condos were sold compared to just 53 last month. We can hope it was just a slow month but I believe that this is indication that the market is nervous over increasing oil prices, demise of airlines and lower tourism. According to the Department of Business, Economic Development and Tourism, visitor arrivals to Maui were down 4.4% with an occupancy rate of 69.6%. May is normally a slow month for tourists. The good news is that we did have a 38.7% increase in foreign visitors. It really looks like foreign visitors love Maui. Read more about economic trends on my blog.
- It’s all about trends. Comparing month to month in Maui can really skew the truth. As I look at trends, we are still a pretty stable market. Residential median prices are down 9% over last year but have been flat for the last 10 months! Condo median prices are up 12% over last year.
- Last month I reported that the high end markets and new multi-million dollar developments continue to drive our average sales prices up. This month we saw this change as the residential average sales price was down to just $709k compared to $983k last month. Bargain hunting buyers are finding deals as our median residential price rose from $567k to $606k.
- Again, this month we saw a big decrease in DOM (Days on Market) which indicates that we’ll may see some stabilization in upcoming months. People that need to sell are pricing their properties to sell quickly. With 15 months of inventory, it is still clearly a buyers market.
- The number of short sales continues to increase while foreclosures seem stable at 1-3 new ones listed in the paper each week. My quick search shows 98 (up from 82 last month) active short sales and 12 bank-owned properties island-wide.