Maui Real Estate Advisor - Year End Wrap-up Part I

Year End Wrap Up 2008

2008        Sales      Sales 2007      % Change
Homes      907            1,142             -21%
Condos     788            1,179             -33%
Land          97               226             -57%
   
2008       Median Price       Median 2007         % Change

Homes        $577,867         $630,000                  -8%
Condos       $549,500         $550,000                   0%
Land           $700,000         $562,000                  25%
   
2008       Average Price       Average 2007        % Change
Homes         831,424            $919,942               -10%
Condos        921,063           $816,867                  13%
Land            966,776           $841,091                  15%

We are happy to see 2008 in the rearview mirror
But will 2009 be the Year of the Bold Buyer?

As usual, the stats aren't telling the truth.  It is a fact that sales are down in all categories significantly.  It is also a fact that inventories are up.  Ergo, prices should be down.

Overall, we see the median selling prices of single family homes was down by 8%.  But what is not evident is the impact of affordable homes sales.  You'll see that the median is not down as much as indicated.

We see the median for condos didn't change in 2008, indicating stable pricing.  Wrong again.  We'll show you how that number is skewed, and what we really have to look at for comparison is the WAM (Wailea Adjusted Median). 

At the beginning of 2008 real estate sales seemed pretty stable in all categories and held through the first quarter.  In April, however, we hit the beginning of what would be an economic trifecta for Hawaii.

• In April we lost 2 airlines, ATA and Aloha.  Fewer flights meant fewer visitors.  Less competition led to increased airfares which again resulted in fewer visitors and real estate buyers.

• By July, the price of oil was over $140 a barrel, once again impacting the price of air travel and many other things.  Would-be tourists and buyers opted to do something closer to home.

• In October, as you started to get some relief on the price for filling your tank, the economic markets tanked and would-be buyers decided it was a good time to hang on to any cash they had left and just wait and see.

Welcome 2009!  With more inventory in all categories, some of the lowest interest rates ever and some prices dropping back to 2004 levels...

It's a great time to buy real estate in Maui.

Get the full story at www.MauiRealEstateAdvisor.tv or email lee@alohapotts.com