February 2011 Maui Real Estate Market Trends
When it comes to fashion trends, it is the rich and the famous that set the trends. Not so with real estate! This month, I took a look at the lower end of our market – the non-vacation rental 2 bedroom condos. In market trends, they seem to be the market leaders.
We are starting to see real changes in this market so I took a look at the history. I mapped out the sold prices in 6 month increments. These properties have been hit the hardest with foreclosures and short sales. Unit sales prices have been reduced over 60% from the peak values 5 years ago. The peak was in mid 2006 at $318,500; now the average is $124,700 or back to values found in 2003. While I don’t think that every area and type of property is the same, I think we are very near bottom here!
B – Buyers are coming in droves with multiple offers, often cash.
O – ZERO or next to no inventory. There is only one active listing at Kihei Villages. It is a very strange 3 bedroom unit with no living room and just one bath.
T – The average sold price is stable.
T – The list to sell ratio is high (99% at Kihei Villages)
O – Owners can pay less to own than to rent. Affordability is appealing to first time homebuyers and it’s all about cashflow for investors.
M – Maui is on sale! With low interest rates don’t wait.
Overall, February was a short but productive month. Condo sales were strong. The number of residential sales declined for 2nd straight month but if you pro-rate based on days in the month, we were ahead of January. Average prices for both condos and residential properties were up though the trends show a pretty stable picture. Future indicators show that condo prices will continue to decline while residential prices will remain stable. The number of pending transactions is again up from last months high of 516 to 578 with 30% being short sales. Inventory is just 17 months with areas of Kihei and Central being below 10 months. 53% of the sales were bank-controlled properties. 54% of the sales were CASH!
Next month, we’ll look at our luxury properties and see what’s happening there!