HERE ARE THE 2011 YEAR-END STATS. FOR YEAR ENDING 2011, SINGLE FAMILY HOMES (SFH) ON MAUI DROPPED 6% TO $433K MEDIAN PRICE VS $460K, IN 2010. TOTAL SALES VOLUME INCREASED BY 10% TO 898 UNITS SOLD, ISLAND WIDE. CONDO MEDIAN PRICES DROPPED BY 18% TO $310K, VS $378K IN 2010. TOTAL SALES VOLUME ALSO INCREASED BY 1% TO 1155 UNITS SOLD, ISLAND WIDE.
THE FOLLOWING DISTRICTS ON MAUI EXPERIENCED AN OVERALL INCREASE IN MEDIAN PRICES :
SINGLE FAMILY HOMES: Haiku by 23% to $637k; Kaanapali by 14% to $1.1mill; Lahaina by 3% to $518k; Lanai by 1% to $270k; Pukalani by 2% to $423k; Paia/Kuau by 14% to $515k; and Wailea/Makena by 32% to $2.250mill
CONDOS: Only Wailea/Makena by 6% to $900k
INVENTORY LEVELS BASED ON ACTIVE INVENTORY THRU JAN 2012 , IS APPROX 1664 UNITS TOTAL (SFH AND CONDOS), WITH AN ABSORPTION RATE OF 173 UNITS/MONTH WHICH TRANSLATES TO APPROX. 9.6 MONTHS OF AVAILABLE SUPPLY.
AS OF JAN 2012, OUR REO (BANK OWNED) INVENTORY COMPRISES APPROX. 4.7% OF TOTAL INVENTORY, OR 78 UNITS, WHILE SHORT SALE ACCOUNTS FOR 6.9% OF TOTAL INVENTORY, OR 115 UNITS.
WHILE WE EXPECT MORE SHADOW REO PROPERTIES TO HIT THE MARKET IN STEADY NUMBERS THROUGHOUT THE REST OF THE YEAR, WE ALSO SEE THE DISTRESS PROPERTIES GETTING MULTIPLE OFFERS AND CLOSING OVER ASKING PRICE.
IN A NUT SHELL...the Good, the Bad....and THE ROAD AHEAD:
Strong buyer-showing activity is now evidenced in actual reported sales to date, with mulitple offers competing for well-priced properties. We also have seen a strong influx of Canadian "cash" buyers , first time home buyers, and move-up buyers back in the busy winter market place. Inventories have decliend about 18% over the past 12 months. Many short sales and REO properties will need to be absorbed before we can move ahead to a more normal marketplace. INTEREST RATES continue to remain near historic record lows (since WW II) which may movitvate would-be Buyers to go ahead and buy IF they can qualify. Current World and US events will ahve ripple effects on cost of living, consumer confidence, and our Real Estate Market.
As usual, BEST DEALS are selling, everything else is getting old. Thus, pushing Sellers to be more pro-active in their pricing. Unrealistic Sellers will be ignored by the market and miss current opportunities that later become woefully apparent. They may even end up in a short-sale or foreclosure situation that could have been avoided.
For Buyers, to be successful, you MUST BE PRE-APPROVED if getting traditional financing....underwriting requirements are still very stringent. However, there are a few lenders providing loans to non-traditional borrowers (self-employed, cash tip employees, etc.) but must provide strong downpayment, strong reserves, etc. Many buyers are not interested in short-sales, due to long approval periods from the bank/Seller, thus, regular sales are becoming more attractive to ready buyers. For first-time homebuyers, this low point in the market is your rare chance, so check out your options carefully!
The local Maui economy is seeing unemployment rate drop from 2011 levels to approx 7%, thus;, many local residents are feeling sense of confidence in overall economy again. The tourist numbers and hotel occupancy rates are seeing all time high numbers since 2008.
Again, TIME WILL TELL, where this all goes....always best to weigh all your options before proceeding with selling/buying...and don't suffer from the "PA" SYNDROME (paralysis from analysis), otherwise, you'll never move forward with any decision.
Have a wonderful, healthy and joyous 2012!