September Realty Sales on Maui

Excerpts from the Maui MLS report, September 2015:
http://www.ramaui.com/UserFiles/File/Stats/All-September2015.pdf

Page 4 – September’s Sales Unit Volume – Residential sales remained steady at 97 homes sold while Condominium sales rose to 108 units sold. Land sales came in at 16 lots sold in September.

Page 5 – September’s Median SALES prices –The Residential median price rose to $573,300 and the Condo median price rose to $399,500. Land median price increased to $535,150.

Page 6 – Days on Market, Residential homes = 95, Condos = 120 DOM, Land = 195 DOM.

(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD inventory sells, it will move this indicator upward, and vice versa. RAM’s Days on Market are calculated from List Date to Closing Date [not contract date], including approximately 60 days of escrow time.)

Pages 10 – 14 – “Year to Date Sales” numbers compare January – September 2015 to January – September 2014. Shorter timeframe (monthly) views do not necessarily reflect the longer timeframe trends. Big percentage changes may be misleading or misunderstood so be careful. Early 2014 monthly numbers were quite strong making early 2015 seem “a bit pale” in comparison. Anticipate that they will even out as we progress through the year.
For a more comprehensive view, compare to 2014’s Year-End (Dec. 2014) figures available at: http://www.ramaui.com/UserFiles/File/Stats/All-December2014.pdf

YTD – Residential unit sales increased (817 homes sold / +96 units / +13% change YTD), average sold price = $895,453 (-2% change YTD), median price = $585,000 (+3% change YTD) and total dollar volume sold = $731,585,469 (+11%YTD).

YTD – Condo unit sales exactly match 2014 sales (915 units sold / 0 units change/ 0% change YTD), average sold price = $644,395 (0% change YTD), median price = $405,600 (-3%YTD). Total Condo dollar volume sold = $589,621,608 (0% change YTD).

Land – NOTE: Land Lot sales are such a small sampling that statistics in this property class are not necessarily reliable indicators. Land lot sales declined (112 lots / -18 units / -14% YTD change), average sold price = $882,741 (+27%), median price = $487,500 (-5%), Total dollar volume = $98,867,041 (+9% YTD).

Total sales for immediate past 12 months: Residential = 1,038 (with 11.5% being REO or Short Sale), Condo = 1,175 (7.2% REO or SS), Land = 144 (4.2% REO or SS).
NOTE: 37.3% of these Sales in the last 12 months have been CASH transactions.

As of October 8, 2015 – Active/Pending-Continue to Show/Contingent status inventory:

Current Absorption Rate base on this month’s Active/Pending-Continue to Show/Contingent status inventory divided by September Sales: Residential = 6.5 months, Condo = 8 months, Land = 24 months of inventory.

For Absorption Rate enthusiasts who calculate only pure “Active,” (not any pending/contingent) divided by September Sales: Residential 498 “Active”/97 Sold = 5.1 months. Condo 733 / 108 Sold = 6.8 mos. Land 353 / 16 Sold = 22 months of inventory.

October 8, 2015 Aloha all!

Brief Maui Statistics Overview:

 

Oct. ‘15

Sept.

Aug.

July

June

May

April

Mar.

Feb.

Jan.

Dec.‘14

Nov.

Oct. ‘14

Homes

633

666

652

677

697

725

747

746

716

672

676

641

646

Condos

860

918

934

940

987

1,024

1,069

1,062

1,049

977

963

890

858

Land

381

380

362

371

366

369

360

383

392

393

397

401

399

Overview Page 1 of 2

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IN A NUT SHELL…… Monthly Residential and Condo Unit Sales numbers bounced up and down the last few months, with Residential and Condo Inventory decreasing this month. Canadian investors have been big participants in Maui’s real estate market, however the current Canadian Dollar exchange rate (.77 US $) may motivate Canadian investors to sell, rather than buy.

2014 Year-to-Date Median and Average prices were rising across the Residential, Condo and Vacant Land markets despite lower number of unit sales (YTD). First half of 2015 took a break from that trend; however that seem to be catching up as we proceed through the rest of the year.

Increased showings and sales, multiple offers on “well priced” listings, hesitant buyers become onlookers…… Window of opportunity is quickly closing for first-time homebuyers (see below).
“CASH is King!” when making an offer. For several months approximately 37% 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 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.

FOR SELLERS: Sharpen your pencil, talk to your CPA and your Realtor® 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.

FOR BUYERS: Low interest rates prevail; however have started to nudge up and are predicted to rise later in 2015. 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.

First-Time Home Buyers – Many programs are available….. Attend a First-Time Home Buyers workshop, get familiar with the process, get qualified/approved, do your homework to get your own home. Many current owners never thought they would be able to own until they attended a workshop, discovered they could own a home, and are glad they did.

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.

Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to different conclusions that looking at the overall view.

Maui’s market place is much smaller than Oahu’s, and a few high or low sales have a greater effect on the statistical numbers without necessarily indicating a big market swing one way or another.

If you have any questions regarding hard numbers, call Terry at 808-270-4602. Mahalo,
Terry Tolman
RAM Chief Staff Executive

Read the full report: http://www.ramaui.com/UserFiles/File/Stats/All-September2015.pdf

 

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