Maui 2016 Mid Year Report
Brief Maui Statistics Overview:
May's Sales Unit Volume
Residential sales declined to 93 homes sold while Condominium sales declined to 118 units sold. Land sales increased to 14 lots sold in May.
May's Median SALES prices
The Residential median price decreased to $620,000 while the Condo median price decreased to $423,500. Land median price increased to $378,500.
Days on Market
Residential homes = 120, Condos = 119 DOM, Land = 121 DOM.
YTD Residential unit sales increased (434 homes sold / +38 units / +10% change YTD), average sold price =$889,278 (-10% change YTD), median price = $619,500 (+4% change YTD) and total dollar volume sold =$385,946,502 (-1%YTD).
YTD Condo unit sales increased (535 units sold / +19 units sold/ +4% change YTD), average sold price =$644,634 (-6% change YTD), median price = $429,000 (-3%YTD). Total Condo dollar volume sold = $344,879,418 (-3% change YTD).
Monthly Residential and Condo Sales numbers decreased slightly and Land Sales increased.
Canadian investors have been big participants in Maui’s real estate market in years past, however the current Canadian Dollar exchange rate (.77 US $) may motivate Canadian investors to sell, rather than buy OR sell and reinvest in other Maui properties.
Increased showings and sales, multiple offers on “well priced” listings, hesitant buyers may become onlookers…... Window of opportunity is quickly closing for first-time homebuyers
CASH is King!
When making an offer. For several months approximately 36% of all sales were CASH.
Well priced properties are attracting multiple offers making for a quick sale. REO (Foreclosures) and Short Sales are dwindling, with any “hidden inventory” (or overhang) backlog slowly trickling onto the market.
Mortgage Interest Rates are inching up slightly which may help motivate would-be Buyers to go ahead and buy IF they can qualify. Savvy Investors are buying with Cash, giving them a strong negotiating position, no financing/appraisal hassles and a quick closing.
While general U.S. economic news looks cautiously hopeful, current World and US events and election will have ripple effects on cost of living, consumer confidence, Financial and Real Estate Markets.
Rising Sales prices cause some “Owners” to become “Sellers,” putting their homes on the market.
Sharpen your pencil, talk to your CPA and us to explore the hidden benefits or consequences. Make no assumptions that will sting later.
To be successful, Sellers need to beat competing properties with better property condition, realistic pricing, good marketing, and flexible, creative terms. Days on Market figures show that properties priced right will sell in a reasonable timeframe, often with multiple offers. “Priced Right” is still the determining factor.
BEST Deals are selling, while significantly over-priced listings remain un-sold.
Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage realistic offers from knowledgeable Buyers. This can prevent unanticipated escrow fallout or Buyers whittling your price down during the transaction when previously unknown facts come to light.
Low interest rates prevail; however have started to nudge up. Buyers should get Pre-Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans).
"Short-sales" and foreclosures are still in the marketplace, yet they can be less of a bargain than they seem, requiring more hurdles to leap and more time (often 4-6-12 months) to close, if at all.
Be prepared, but BE REALISTIC. Lenders are more stringent on requirements now for loan approval, compared to 2004-2008.
The low point in the market has passed, so check it out carefully NOW, don’t delay. The opportunity is fading quickly. If you can’t buy now, start saving your down payment for the next market cycle.
Call 808-747-9670 for details or signup for automatic market reports and listings