So.... How's the Maui Market
Everyone asks how the real estate market is doing and if we're at the bottom yet. While we don't have a crystal ball to answer that question, we do have some indicators.
The Real Estate market on Maui is holding, and there is some evidence that buyer activity is on the increase. Looking at the whole island, for the past 12 months condo sales are holding at 80 to 120 per month, and residential sales at 60 to 80 a month. So the market is actually in a holding pattern; some months fluctuating up and some down. Since we were movoing 60 condos and 50 houses per month in 2009 these numbers do show that the market has settled into a reasonable level and buyers are motivated to take stake in Maui.
Prices however show a different picture. Residential prices appear to be holding while condo prices are declining.
Average Median Prices First 5 months this year vs. last year.
Residential $467,000 $460,000
Condos $437,000 $328,000
There are 142 active short sale or bank owned listings which continue to drive prices downward. Bank-owned property sales are still rising with 71 sold in the past 3 months and 59 pending. So we can expect these market drivers to continue to influence sales and pricing for some time to come. The good news is that interest rates are still at historical lows and with the correction in pricing, it is a buyers market.
But it's no surprise that we are seeing a decrease in inventory. Seller's do not want to sell in this market unless they have to. And yet, a decline in inventory can lead to increased prices. There's always a silver lining.
Inventory of Active, Pending & Contingent listings:
Type 12/08 12/09 12/10 6/11
Residential 1,176 1,087 1,008 917
Condos 1,594 1,616 1,412 1,159
Land 548 644 611 532
If we did have that crystal ball it would no doubt say that this is an excellent time to invest in Maui.