Aloha Everyone! Sorry I’m late getting this Maui market analysis out but I was finishing up reporting on the great event that Grow Some Good held last Saturday. I’m the co-founder and treasurer so that means I release those stats too. Admittedly I’m a GEEK but I really don’t love numbers THAT much… I just like to see RESULTS! The event grossed $39,011.09 in sales and we had 354 attendees not counting the chefs and their helpers or the band. We were worried about rain but ended up having a dry gorgeous sunset! Not bad at all for the 2nd annual event. So with my focus on the gardens and the green hills of Maui this rainy spring, I took longer to generate these reports.
I reviewed all the February data yesterday and was trying to think what to say this month. In the Maui News this morning I read that Terry Tolman at RAM called it “bouncy“. I laughed out loud. That is actually a good description. I’m feeling positive about the market. Some things look really strong and others don’t. Here are a few notes:
- We’ve had a SLOW decline in sales since April of 2013. That is the trends.
- We’ve had a 30% reduction in average days on market in the last year. That is usually a sign of a strong market.
- The inventory is creeping up — This means there is more houses on the market than are being purchased. We are up to 9.9 months of inventory from a low of 6.8 months in June 2013. Some areas have much more and some much less! However, last year’s peak was in February with 10.8 months of inventory. But overall, this means we are swinging back toward a buyer’s market.
- Price trends are a little bit of a roller coaster. We are seeing a lot of higher end (Luxury) homes/condos being sold which has caused the average price trend to be up 28-29% over last year. However, the median trends are much less drastic with 4% increase in condos and 10% increase in single family homes.
- We did see the condo market pending jump as more SnowBirds are finding ways to buy a piece of warm Maui after a tough winter. However, this February had 251 pending sales compared to 2013 February of 293. That’s a pretty significant decrease. Maybe people decided not to buy after experiencing our rainy weather!
- My gut is telling me that many sellers are getting too greedy. Prices are over-inflated and then houses don’t sell. Many agents report that transactions are falling out of escrow because a house doesn’t appraise and the buyer can’t get the loan.
- Lenders are coming back with many more flexible options for purchasing homes. That is such a switch from a year ago. Still it does take work to qualify and higher home prices aren’t helping many people. And interest rates are still very good.
TEASER I have some Year End data that I have yet to share… I think I’ll put that in a new post. Do you want to know what percentage of the market is vacation rentals? Or what about how which area has the most sales? Stay connected!
Distressed Properties in Maui
The distressed market is definitely slower than a year ago. But they are out there and they will be for many years. It is sad to note that right now our Congress has not extended the Short Sale Forgiveness Act that allows homeowners who short sale their property to avoid getting taxed on the difference between what they owed and what sales price of the short sale (i.e. phantom income). The people against that this bill say that the Federal Government is losing 6.4B in revenue from this. That is just crazy – I would call that PHANTOM REVENUE. Homeowners who short sale do it because they have no other options, no equity and usually high debts. So this is just forcing them to file for bankruptcy to avoid the taxes where only the lawyers get richer.