Last month, many people were talking about skyrocketing prices when the Realtors Association of Maui released information that the median price of a home on Maui reached it’s highest point since 2007 at over $700,500.
As I had stated, this was a one month anomaly and this month our median residential price was back to $660,000. In the last year it has hovered between $600,000 and $700,000. However, I’m going to dive a little deeper here to show you can’t expect median prices all over Maui!
Where can you buy a house for $660,000?
Where can you buy a “nice” house for $660,000. “Nice” will mean different things to different people. While I would love to apply the logic of not a fixer upper and in a safe neighborhood, I can’t quantify that through MLS records. Instead I used a “standard” definition of having at least 3 bedrooms, 2 baths and >1300 sq. ft. I considered throwing out cash and non-conventionally financed because those have a higher likelihood of being fixer uppers but the results were inconclusive. Just so you know the financing profiles –> Of the 580 homes sold for under $660,000 in 2017 – 18% cash, 55% conventional, 16% FHA, 6% VA, 3%USDA and 2% other (owner financed, 1031, rehab, etc).
Looking at just the homes that met my “standard” criteria, I had only 283 (49% under median price) homes left. That tells you that over half of the homes sold under the median price may be what we call in real estate functionally obsolete. Many buyers have a dream of having a “shack on the beach”; they don’t realize that even a “shack not on the beach” is a median priced home in Maui. They still may be great homes but having 1 bath or being very small is not what most people think of when looking for a “median-priced” home.
In what areas can I buy a Maui median-priced home?
- Central – Median home price is $572,778
- South Maui – the Median home price is $735,000 (just Kihei is $720,000!)
- Upcountry – Median home price is $670,000.
- North Shore – Median home price is $1,192,000.
- West Maui – Median home price is $1,140,000.
If you are looking for a home in Maui in this category, be prepared! Most sell fast and there are also multiple offers. You may not get a “perfect” home and have to do some upgrades but you will be in Maui – what could be better!
What you should know about Mortgages!
I wanted to take a minute to give you the updates on mortgages. We’ve seen rates come down a little bit but all the analysts expect them to go up by year end. This does reduce your buying power. Prices are predicted to continue up at 2-8%. So make sure to not delay in getting talking to a great mortgage professional!
Low Down Payments
Did you know that only 4% of buyers surveyed realized that there are loans available with <5% down? 69% fear they don’t have the down payment. The average first time homebuyer in the U.S. only put down 6%. That is average! The average for upgrade buyers is only 14%. And yet 39% of homebuyers polled, thought they needed 20% down.
Mortgages are Getting Easier
The chart at the right shows the Mortgage Credit Availability Index and generally shows how easy it is to get a mortgage. We are not going back to the times before the mortgage meltdown but it continues to get easier to qualify for a mortgage. If you want to own a home, and haven’t checked for a year, don’t delay!
Contact Kathy today – 808-344-0469
Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.
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