Official Report from Realtor Board of Maui

Official Report from Realtor Board of Maui

Your copy of the July 2014 Maui Stats Here are the highlights; July's Sales Unit Volume - Residential sales increased to 98 homes sold while condominium sales decreased to 82 units sold. Land sales decreased to 9 lots sold. July's Median SALES prices -The residential median price increased to $573,750 while condo median price decreased to $387,500. Land median price held steady at $550,000. Days on Market, Residential homes = 107, Condos = 138 DOM, Land = 279 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.) "Year to Date Sales" numbers compare January-July 2014 to January-July 2013. Shorter time frame (monthly) views do not necessarily reflect the longer timeframe trends. For a more comprehensive view, compare to 2013's Year-End (Dec. 2013) figures available at: http://www.ramaui.com/UserFiles/File/Stats/All-December2013.pdf YTD - Residential unit sales decreased (554 homes sold / -29 units / -5% change YTD), average sold price = $952,120 (+19%YTD), median price = $574,500 (+7%YTD)  and total dollar volume sold = $527,474,535(+13%YTD). YTD - Condo unit sales decreased (738 units sold / -47 units / -6%YTD), average sold price = $638,761 (+18%YTD), median price = $417,500 (+12%YTD). Total condo dollar volume sold = $471,405,911 (+11% 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 decreased (106 lots / -4 units / -4% YTD), average soldprice = $656,788 (-16%), median price = $540,500 (20%), Total dollar volume = $69,619,475 (-19% YTD). Total sales for immediate past 12 months:  Residential = 955 (with 14.9% being REO or Short Sale), Condo = 1,291 (8.7% REO or SS), Land = 214 (7.5% REO or SS). NOTE: 44% of these sales in the last 12 months have been CASH transactions. As of August 6, 2014 - Active/Pending-Continue to Show/Contingent status inventory: Aug.'14 July June May April Mar. Feb. Jan.'14 Dec.'13 Nov. Oct. Sept. Aug. '13 Homes 675 688 666 682 696 685 686 659 641 618 600 582 610 Condos 900 868 854 856 899 912 882 847 826 773 744 756 785 Land 414 406 405 399 404 413 402 396 400 405 398 399 387 Current Absorption Rate base on this month's Active/Pending-Continue to Show/Contingent status inventory divided by July Sales: Residential = 6.9 months, Condo = 11 months, Land = 46 months of inventory. For Absorption Rate enthusiasts who calculate only pure "Active," (not any pending/contingent) divided by July Sales: Residential 556 "Active"/ 98 Sold = 5.7 months. Condo 782 / 82 Sold = 9.5 mos. Land 387 / 9 Sold = 43 months of inventory. _______________________________________________________________________________________ IN A NUT SHELL...... Monthly residential sales unit numbers steady, monthly condo sales unit numbers take a dip, Inventory stable ...... Year-to-Date Median and Average prices are rising in residential and condo markets. 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. Well priced properties are attracting multiple offers making for a quick sale. Inventories in residential and condo classes remain steady as sale prices increase. 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 (Seller Second Loan, Agreement of Sale, Lease with-option-to-buy and Sale-with-lease-back to seller). 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.  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 much 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. Thank you Terry Tolman RAM Chief Staff Executive for this comprehensive analysis of our Maui market.