YEA-2010 is over! Bring on 2011! December left with strong sales!
Here’s a quick look at 2010 in review. If 2009 was called a roller coaster, 2010 would be a nice downward glide. See my predictions at the end of the article for what I see 2011 will bring.
- The lowest priced property sold for $18,000 and was an oceanfront leasehold vacation rental property at Hale Ono Loa in the Honokowai area of West Maui. Can’t believe you missed it? There was good reason because it was sold before it went on the MLS.
- The highest priced property sold was a Makena oceanfront home for $19,850,000. Makena and Wailea took the top 5 spots for sold high priced properties.
- Median price for all property types was $430,000 down from last year’s median of $479,000. To give you an idea what this can buy, there were several 3/2 brand new homes in Central area with about 1600 square feet of living space.
- We finished off the year with total of 2088 sales, up 29% from 2009!
- Cash is king. Throughout the year 45% of sales have been cash sales. Financing continues to be challenging but far from impossible.
- Interest rates finally started going up in December. They’d been predicting it all year.
- Foreclosures continue to dominate our Maui real estate market. 18% of the sold properties were bank owned and 12% were short sales.
Speaking of foreclosures… Trends are continuing. We are seeing fewer short sales on the market. My gut tell me it’s NOT because we are running out of inventory that should be short sales. Maybe fewer people are attempting a short sales strategy. If you have been on the fence, the good news is that banks are starting to figure out that short sales will save them lots of money and they are getting better at processing them. The banks still have a lot of inventory to be release as REO’s (bank-owned).
- Sales will go up. People are tired of waiting: waiting to sell, waiting to upgrade, waiting to buy. The people that take action will be making a wise move.
- Prices will hit bottom sometime in 2011. Some markets have probably already hit bottom. The higher priced areas may take longer but the majority will bottom out. While foreclosures will still hold prices low, the increase in sales will create some upward movement.
- We won’t see interest rates come back down. They probably won’t skyrocket either.
- Financing will get a little easier but you’ll still need a steady job to get a mortgage.
- Maui popularity continues to climb! We’re seeing more foreign buyers. We see our vacation rental industry growing back to near pre-recession levels. People were tired of waiting for a vacation too!
Other interesting trend articles from 2010:
November: Who’s Winning? Are REO’s and Short Sales Great Deals?
October: Bidding Wars!
May: Predictions: Condo prices will fall! (median price of condos have fallen 35% since then)
March: Price Point Analysis
February: Does cash get you a better discount off the list price?