January 18, 2009
The Maui December 2008 Sales Statistics are in.
http://www.ramaui.com/UserFiles/File/Stats/December2008.pdf
Here's a Brief overview:
(NOTE: Only 1 Vacant Land Sale in December, which makes the Monthly Land figures skewed.)
Pages 4 - December's Sales Volume – Residential and Land Unit Sales slid behind earlier 2008 numbers, and Condos made a weak uptick compared to November’s low. This strongly reflects the increased worldwide economic and financial concerns that came to a head starting in September.
Page 5 - December's Median SALES prices for Residential homes and Condos rebounded to $567,500 and $493,250, respectively. The single land sale for $279,000 determined the de facto median.
Page 6 - Days on Market for Residential homes = 153 DOM, Condos = 163 DOM. Land = 0 DOM (this single lot was not actually listed “for sale” in the MLS, rather reported after the closing for statistical
/comparable purposes).
(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD inventory sells, it can move this indicator upward, and vice versa. Also, RAM's Days on Market are calculated from List Date to Closing Date [not contract date]. As such, it includes approximately 60 days of escrow time.)
Pages 10 - 14 - "Year-End/Year to Date Sales" numbers for Residential sales declined (-21%),average / median prices (-10% and -8% respectively) and for total dollar volume sold (-28%). While Condo sales declined (-34%), average sold price rose 13%, while the median was essentially unchanged at $549,500. Total Condo dollar volume sold was -25%. Land lots sold dropped year-to-date (-57%) however showed increases in average/median prices($966,776 / $700,000 respectively). Total dollar volume declined for Land (-51%).
To compare to the 2007 Year End report, go to:
http://www.ramaui.com/UserFiles/File/Stats/December_2007.pdf
January 7, 2009 - Active/Pending/Contingent status inventory:
Homes Jan. 1,103; Dec. 1,126; Nov. 1,111; Oct. 1,114; Sept. 1,133; Aug. 1,176; June 1,141; May 1,132; Apr. 1,148; Mar. 1,169; Feb. 1,168; Jan. 1,155
Condos Jan. 1,722; Dec. 1,700; Nov. 1,638; Oct. 1,600; Sept. 1,618; Aug. 1,594; June 1,565; May 1,535; Apr. 1,526; Mar. 1,569; Feb. 1,497; Jan. 1,502
Land Jan. 575; Dec. 563; Nov. 595; Oct. 552; Sept. 558; Aug. 548; June 545; May 531; Apr. 548; Mar. 508; Feb. 502; Jan. 513
IN A NUT SHELL...... the good, the bad….. AND THE CONTINUED UNCERTAINTY …… Considering the financial news of the last 120 days, large layoffs nationally and everything else, we are still in a state of continued uncertainty until we see what the new administration is going to do.
Active inventory has grown considerably in the last twelve months. While Unit Sales are lagging, Days on Market figures show that properties priced right will sell in a reasonable timeframe. “Priced Right” is still the determining factor. BEST Deals are selling, everything else is getting old.
Where are the Buyers? ...Watching the new listings for a great deal!!!
Anecdotal evidence:
With the turn of the New Year, RAM launched its new website, www.RAMaui.com. We made the FIND A HOME link a BIG YELLOW button. Unfortunately, it was too obvious and highly overlooked. Our staff was amazed at the numerous calls and emails from prospective buyers saying, “I visit the site daily to look at the new properties that come on the market, where did the link go?” So we changed the link to a standard menu item..…….
FOR SELLERS: To be successful, Sellers need to be realistic and beat competing properties with better property condition, careful pricing, good marketing, and flexible terms.
Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage knowledgeable offers from realistic Buyers. Doing this can prevent unanticipated escrow
fallout. We may see more Agreements of Sale offered in the future.
Unrealistic Sellers continue to follow the market down and miss current opportunities that later become woefully apparent. Sellers who don’t really need to sell (just “fishing?”) should stay off the market, and clear the marketplace for those who REALLY want/need to sell.
FOR BUYERS: Continued low interest rates provide plenty of options for Buyers. Buyers should get Pre-Approved so they can shop in confidence (no last minute disappointments due to non-funding loans).
More "short-sales" and foreclosures are happening in the marketplace, however can be less of a bargain than they seem, requiring more hurdles to leap and more time (often many months) to close. Be prepared.
However, if you can purchase a home, it is a great time to buy and HOLD. Prices have declined considerably in the past 2-3 years; “Able” Buyers are scouting out good deals. Buyers waiting for the "bottom" may also miss unique properties/opportunities as market forces, qualification requirements and rates may fluctuate. (There is no bell that rings when the market hits bottom.) Zooming in on the figures of a specific geographic area or property type may lead to different conclusions that the overall view.
Disclaimer: As always, I will remind everyone that Maui's market place is much smaller than Oahu's, and that 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.
-Terry Toleman | 
