As always, the market is very exciting…
- Just the other day, Barron’s magazine named Maui as the #1 Best Second Home Location
- Our tourist numbers are up 8%
- And our market trends are showing good stability — more sales, stable prices and generally a great outlook.
Interesting Statistic of the Month:
This month, I decided to do a price point analysis. The results (shown below) are downright cool! Everyone paints our market as doom and gloom. Foreclosures are still defining our market and many people think things are going down, down, down.
But the facts show the real story — The sold counts shown are for sales in the last 6 months. For single family residential homes priced under $500,000 we actually have only 5 months of inventory. Usually 5-6 months of inventory is considered a “Transition Market” where the market is moving from being a Buyers Market to a Seller’s Market (or vice versa). Please note that the home median price in all of Maui is just over $500k so we are talking the typical home sale. Homes in this range are moving fast and are strongly influenced by the foreclosure market. We are seeing many of the bank-owned properties selling for over the list price complete with bidding wars. As we expect to see, inventories go up as prices go higher. If you have a property to list, there are a few price points to avoid. For example, anything in the $900k-$1M is just stale and slow with an overall inventory level double the groups on either side. That tells you that no one wants to own a home that is worth “almost a million.” We see another gap in homes at 1.5-2M; a few sold but they sold for much less than their list price (LS Ratio = List to Sell Ratio). In general, we are seeing that as prices get higher, the “list to sell” ratio goes down and the time on market goes up.
If you are buying, opportunity awaits and it may not be as good in 6 months. There are many buyers taking advantage of low prices now and you don’t want to miss them.
If you need to sell, the market is getting busier which is great news. Get on it and get it sold. As I’ve stated before, I don’t see that we’ll have huge price fluctuations anytime soon. We’ll need to work off that foreclosure inventory before that happens.
Here’s a quick update on last months’ statistic of the month. Many people were surprised that 41% of our sales in January were cash sales. In February, that was up to 58%. Someone told me that they assumed that it was all bank-owned properties but that isn’t totally true. Among bank-owned properties 67% were cash purchases but many were conventional, FHA and VA loans.
Check out the detailed reports for each area.
- View the Snapshot Report All areas of Maui captured on a single page!
- View the Full Trend Report – 2 years of trend data by area.
There is not too much new in the foreclosure scene this month. We see the sold trends snap back to expected levels after the holiday peak in December and valley in January. Trends are still upward with no end in sight. There was a news report saying that there were fewer people filing bankruptcy this month so that may be an indicator. My outing to the foreclosure auction this month yielded more of the same – there were probably 60 properties scheduled, 90% delayed, a few canceled and 3 bids where starting bid was way above the market value. I did learn that here in Hawaii on a non-judicial foreclosure, the process where the bank takes possession of the property is called a Credit Bid. As the name implies, at the auction they usually start bidding at the amount owed on the mortgage rather than anything that has to do with a market value.
* Foreclosure counts are based on those advertised in the Maui News. This is not a complete list but reflects trends.
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Maui Statistics This data is published by the Realtors® Association of Maui, Inc. It contains monthly updates on sales by area for the County of Maui.