“The housing slump caused by the end of the tax credits may be over, with sales of new homes rising 24 percent in June compared to May… Nevertheless, sales were at their second-lowest rate since 1963. May’s were the lowest.” (National Association of Realtors, July 27, 2010).
Statements such as these — the positive lead in with a modifying followup — have come to be the norm when discussing the Real Estate Market. The mix of the good and the bad are commonplace, as evidenced by these national statistics, and Maui follows suit.
When comparing the first and second quarters of 2010 with the same period of 2009, Maui condominium sales volume showed an increase of 64 percent, while residential property sales improved by 43 percent and vacant land sales volume grew by 42 percent. However, median sales prices for condominiums declined by 32 percent, residential properties by 7 percent and vacant land dropped by 32 percent.
West Maui sales volume also showed an increase over the first two quarters of 2009, with condominium sales up 16 percent, residential properties 59 percent and vacant land 120 percent. Again, this increase in volume has come at the expense of sales prices, as evidenced by the 3 percent decline in median sales price for condominiums, 16 percent for residential homes and 31 percent for vacant land.
As of July 28, 2010, West Maui’s available inventory included 674 condominiums, 194 residential homes and 113 vacant land parcels. At the current sales pace, this represents a 7.6-month supply of condominiums, an 8.3-month supply of residential homes and an 11.5-month supply of vacant land. According to National Association of Realtors President Vicki Cox Golder, the national supply of housing inventory (not including vacant land) currently represents an 8.9-month supply.
The resort real estate market on Maui is actually performing better than the national average.
What does this mean for the potential seller? With excess inventory in all property types and price points, as well as a flooding of distressed properties, be serious about selling or be prepared to wait out the storm.
How about for the potential buyer? It is a great time to take advantage of low asking prices and mortgage interest rates.With three offices in prime locations, including Whalers Village and the Fairway Shops, Whalers Realty offers a presence that is unsurpassed on the West Side. With their proven track record of excellent service, honesty and integrity, Whalers Realty is the best choice for your next real estate investment. Contact Whalers Realty at (808) 661-8777 or via e-mail at firstname.lastname@example.org.