6 Reasons Why This is an Ideal Time to Sell Your House on Maui
“Given the pandemic and uncertainty it’s caused, the general sentiment is that now is not a good time to sell your home,” says Danielle Hale, Chief Economist at Realtor.com “Yet so far, the data suggest the opposite — that buyers outnumber sellers in the housing market, which means it’s better to be a seller than a buyer.” Here are our top 6 reasons (with data statistics) why this is an ideal time to sell your house on Maui.
1. Buyer Demand has Returned
Whilst at the start of the year home sales understandably went dormant during the beginning phases of the Coronavirus pandemic, now that the lockdown restrictions have lifted — the real estate market is already seeing strong signs of a rebound.
According to the REALTORS® Assoc. of Maui, Pending Home Sales for single-family homes has now shot up 22.5% in June 2020, which comparable to April this year, was at -57.8% during the Coronavirus lockdown period.
2. Shortage of Homes for Sale
However, whilst home buyer demand is showing signs of a strong rebound, the number of homes for sale to meet this pent-up demand is at an all-time low.
According to the REALTORS® Assoc. of Maui, Inventory of Homes for Sale in Maui decreased 15.5% in June 2020 (for single-family homes), a 3.4% further inventory drop than the same time in 2018 – and also, as you can see in the historical chart below, significantly over the last decade.
“There was insufficient supply last year,” says Lawrence Yun, Chief Economist of the National Assoc. of Realtors. “This year during the pandemic, the shortage has intensified.”
This shortage is the result of fewer distressed properties on the market, “due to the massive government stimulus support, including mortgage forbearance and generous unemployment benefits,” Chief Economist Lawrence Yun further explains.
3. Less Competition in the Market
With more buyers back on the market, low inventories of homes for sale on the market and with the Coronavirus scaring many sellers away from listing their home — you’ll now have even fewer homes to compete with.
If you can enter the real estate market without as much competition, it means you’ll be in a better position as a Seller — perhaps even starting a bidding war on your home between eager buyers.
4. Home Prices Have Increased
While the demand for homes has returned and inventory is at an all time low, the conditions are perfect for home sellers to get high prices.
“Many sellers can get top dollar in the current market conditions,” says NAR Chief Economist Lawrence Yun.
According to the REALTORS® Assoc. of Maui, home prices increased in 2020, with the median single-family home prices going up 1.5% in June 2020, to $761,000.
At this same time in 2018, the median single-family home price was $727,500.
5. Mortgage Interest Rates are at a 50 Year Low
Another factor driving home buyers to search for a new home right now is the historically low mortgage rates.
According to the Federal Home Loan Mortgage Corporation, Freddie Mac, the average interest rate for a 30 year fixed-rate mortgage dropped below 3%, settling in at 2.98% for the week that ended July 16th.
“Mortgage rates fell below 3% for the first time in 50 years. The drop has led to increased home buyer demand and, these low rates have been capitalized into asset prices in support of the financial markets,” said Sam Khater, Freddie Mac’s Chief Economist.
With such low interest rates, even those who were thinking of waiting it out over time are now stepping out to lock in an unprecedented 50 year low mortgage, as mortgage applications for June 2020 new home purchases increased 54.1% compared from a year ago, reported the Mortgage Bankers Association (MBA).
6. Buyers Lifestyle Needs Have Changed
As people were forced in lockdown for long periods of time in their houses during Coronavirus, it enabled people to really see that where they live is important, to evaluate their own home and whether it is the right fit for them, their dreams and their needs.
Home offices, more privacy, more sunlight, bigger, greener outdoor spaces and just more room are becoming more important to homeowners, as well as the increasing need to be more self-sufficient (with solar, food gardens, etc.) and to work remotely from home.
With Hawai’i being considered at the forefront in regards to healthier and more sustainable living choices – as well as with virtual tours making it even easier to sell your house online — it really provides the ideal market setting and opportunity for Sellers on Maui right now.
Looking to Sell your Home on Maui?
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, please feel free to reach out and ‘Get in Touch with Dave Futch’ by calling 808-280-9600 or via e-mail email@example.com