Maui saw its lowest volume of condo sales in June vs. any other month in the last five years. There were 53 condo sales based on sales on the Maui MLS. This figure is for the county of Maui including the islands of Maui, Molokai and Lanai. This number is a good bit lower than last month's totals where the county had 84 sales. It is also quite a bit lower than June of 2007 when we had 113 sales.

It appears that a number of factors may be contributing to the slow down in volume. Looking at the timing, one of the first thoughts that came to my mind was the impact of airline strugges. Late March saw the loss of two of Maui's bigger carriers. Aloha went out of business as did ATA airlines. They accounted for something between 15-18% of all passengers flying into Maui. Less visitors mean less potential buyers for our condo market. The airline struggles and higher fuel prices have also means higher prices for plane tickets for the other carriers. The credit crunch is also playing a part. Buyers are having a little more trouble securing financing. Buyers need to have strong credit and full documentation to access the best available financing. The overall economy may also be a factor. Second homes become less of a priority as the economy continues to slow.

What does this all mean for buyers and sellers? Buyers will find that there are opportunities in the current market. The majority of the condo market is seeing price adjustment with recent sales falling below market highs achieved over the last couple of years. Sellers need to account for the adjusting market and decreasing sales volume when pricing their condos. Those that need to sell quickly should be priced to stand out in the market. Contact me for additional on Maui Condos for Sale and information on the Maui condo market.