It seems that we are at the start of a slow but permanent rise of the south Maui real estate market, but only time will tell for certain.
It is easy to become overly emotional and biased when discussing the current state of the Maui real estate market, but numbers go well beyond sentiments to reveal more than meets the eye. The Realtors Association of Maui released its official sales statistics for the month of May. Below is the breakdown for sales in South Maui.
South Maui Single Residence Sales in May
There wereÂ 23 single family residences sold in May in South Maui, compared to 24 in April, and only 13 in May 2009. Average Days on Market (DOM) remains at approximately 132 days, but keep in mind that that figure includes the usual 30-60 days for escrow. There were 15 properties sold in Kihei with a median price of $501,000, compared to 20 last month and 10 a year ago.
Maui Meadows saw 3 sales with a median price of $ 775,000, compared to 2 last month, and no sales a year ago. The Wailea/Makena district saw 5 single family residences close at a median price of $1,265,000, compared to 2 last month, and 3 sales a year ago. However, of key note is the volume of the Wailea/Makena sales totaling a sales volume of $22,043,000.
South Maui Condominium Sales in May
There were 42 condominiums sold in South Maui in May, compared to 64 in April and only 30 in May 2009. Average Days on Market (DOM) for Maui condos was measured at 192 days. A total of 27 condos sold in Kihei at median price of $327,500, compared to 51 sales last month at a median price of $250,000 and 22 sales a year ago at a median price of $285,000.
Wailea/Makena condo sales also experienced an increase, up to 15 in May at a median price of $950,000 from 13 last month at a median of $975,000, and 8 a year ago at a median price of $790,000. However, the emphasis should be placed on the Wailea/Makena sales volume of a whooping $41,609,999.
South Maui Real Estate Market Analysis
The increase of sales, particularly in the high-end sector, is a sign that consumer confidence is returning and the market is absorbing inventory. As per the latest data released by ReatyTrac, there is a high number of foreclosure filings which will result in more bank-owned properties coming on the market.
Potential buyers need to mindful that the record-low interest rates are increasingly slightly, which will decrease overall purchasing power (don’t wait to buy, as market fluctuations can price you out of your dream home). Sellers need to be aware of the high influx of distressed properties (REOs, short sales) and in order to compete in this market, sellers need to price accordingly and be represented by qualified Realtors with an extensive marketing network.
Buyers, contact Mariah if you are interested in finding your Maui property. And sellers, contact Alex for a confidential consultation of your home’s value and a custom-designed marketing plan to sell your Maui home today.