The February 2013 Maui Real Estate Sales Statistics by the Realtors Association of Maui show a huge increase in the number of condos sold in February. 100 units closed with a total sales volume of over $50 million, a large increase from January when 62 units sold with a total sales volume of about $25 million. The median price of a Maui condo in February was $364,950, a large increase when compared to the previous month ($292,000).
For single family homes, the median price held steady at $550,000, with 65 homes sold.
The market is pretty hot. On recent showings this week, homes were flying off the market in numerous areas. In Waiehu Heights (Wailuku) alone, I showed two homes yesterday, each of which had only be listed less than one week, and both had 3 offers on the table. Another that I had hoped to show had gone into escrow after about only 10 days on the market. In Kihei, my clients saw a home they liked, but by the time we could even discuss writing up an offer, we learned an offer was accepted of two that had come in after only a few days on the market. This is a common occurrence. What does this mean for buyers? Serious buyers must get themselves comfortable with the concept of “jumping” on a home they like if they want to have any chance of making the purchase happen. The environment, especially from the $350,000 – $550,000 price range for homes is very competitive. When buyers understand this and are ready to jump, a prequalification letter must also be available to submit with the offer in order for their offer to be looked at seriously and favorably. Depending on the circumstances, it is not uncommon for offers to be accepted at higher than the asking price.
Call us at 808-242-1467, Delmore Realty’s office, to further discuss the market and your specific real estate needs or questions.
Now is the time to buy in Maui
Why is it the time to buy? Because people with money are doing it. They aren’t
smarter than the rest of us but they do recognize when the time is right. And
now the time is right. In 2012 72% of Maui land sales have been cash. Add to
that 60% of all condo sales are cash this year. Even home sales are 33% cash.
Why is that? Number one is that loans are still incredibly hard to obtain. Although the best in UK are avaialbe for short term loans there are still much aspects to be looked at. After that it is the credit consumer who is still afraid of the market. It’s not
that the consumer can’t qualify it’s that he won’t take the risk.
This will prove to be a big mistake. When the consumer finally decides the time
is okay he will be buying at inflated prices from the people that are buying up
the market now with cash. Don’t get left behind wondering how the the rich get rich.
Take a risk today. Is it a risk? Not if you believe the real estate economists who clearly state that the US real estate market bottomed out 6 to 8 months ago and will begin to rise over the next several years. Do you like those one percent returns from the banks? Across the US it is now cheaper to buy than to rent. Get that 30 year home loan today for less than 4% interest and your heirs will be happy.Today in Maui if a home is well priced it gets multiple offers. Delmore Realty found that out a number of times this month and lost several offers over full price to other companies offering more. The lesson is don’t bargain hunt if it’s priced right.
Tom Delmore, Realtor 808-283-2438
October 8, 2012
Prices are quite good on Maui — May 2012 statistics told of a 5-year low in median home prices. Interest rates are also at or near record lows, below 4%. The economy is still weak in a lot of areas. We are now seeing record low inventory, not only on Maui, but in many pockets across the country. See this article from the LA Times for the competition resulting in low inventory there.
All this seems to be leading to a shift in the market. Some may call this signs of recovery, as in this article from the New York Times. It’s definitely feeling a lot more competitive here on Maui. Buyers should be prepared to fight in a competitive, mulitple offer situation for properties that interest them, especially those that are well priced. While it is somewhat becoming something of a seller’s market, many sellers are still having to keep clear from selling if they are still underwater, or can’t get what they would like, price-wise, in today’s market. However, with the prevalance of bank sales and short sales, or for someone who owned the home a long time and won’t be forced to short sale, these sellers are seeing that many buyers with means are starting to dive in to home buying. However, the low inventory and competition is also somewhat frustrating for buyers who keep putting in bids, often bids over the asking price, only to be rejected due to fierce competition. Yet some properties continue to linger on the market…these are properties that aren’t priced right or are in a less-desirable area.
Here on Maui, the May 2012 statistical report showed that there were only 728 homes for sale (active or pending) as of June 8, 2012, the date the report was issued. This is the lowest number since 2007, when the Realtors Assocition of Maui began tracking inventory in its monthly statistical report. There were only 998 condos for sale and 483 parcels of land as of June 8, 2012. Compare this to August 2008, when 1176 homes were for sale, 1594 condos were for sale and 548 parcels of land were for sale. Since Aug 2008, home and condo inventory has dropped by about 38%.