Wow the months are flying by! I’ve been busy taking brokers’ class plus doing normal real estate work. I have a “long” short sale closing as well as a Kihei vacation rental. Throw in a trip to the mainland for a week of Ninja Training and a class reunion — I guess I see why time flies! Here are some of the highlights of the Maui Market for May, 2013.
- Foreclosures are down. I compared 2013 YTD summary to same period in 2012. In 2012, distressed properties were 28% of the market; now they are down to just 13%. We are all seeing that banks are more willing to short sale properties.
- This has really made the market turn around. Someone had described market changes as a SWING! That is certainly true in that it is slow to start and all of a sudden you are way up on the other side. Buyers waiting for $100,000 condos have missed out. Even amongst the lower end condos, not upgraded units are still selling for $200,000. Kihei first then upcountry, now Central as well as the West Side where median condo prices are up 14% over last year.
- May was a strong sales month with number of sales higher than it’s been in over 3 years.
- One area that is super hot is LAND. In 2010-11 we had about 500-600 lots for sale and were averaging sales of 10-15 per month. In the last 8 months we’ve been seeing 15-25 sales per month and have only 356 lots available for sale.
- I keep thinking that as people price their houses higher we’ll see days on market (DOM) increase. While DOM does look like it peaked in May, I ran the DOM counts for the sales in May 2013. Interesting enough about 12% of sales were never on the market. Less than half of these are developer sales. But over 15% were on the market over a year with the winner (?) being on the market 1473 days. Those sellers patiently waited for over 4 years to sell their house! Other than these interesting notes, I saw little correlation that is a trend to prove my hypothesis. Inventories are still very low so people are paying top dollar.
I’ve been having lots of fun (I know.. I am a geek!) putting together some new charts for looking at data. Just the other day, I showed a client that she is 50% more likely to sell if she priced it higher! Ask me how and I’ll share with you.
I’m also starting to go through my clients and friends and provide a “What’s Your House Worth?” service. I think it’s great to know even if you aren’t planning on buying or selling! More details to come but ask me today if you are interested.
Questions or comments? Please ask below.