April 6, 2009
Aloha!
Attached are the Maui March 2009 Sales Statistics. Brief overview:
March's Sales Volume – Residential Sales rose to 52 homes sold while Condos picked up slightly to 48 units sold and Land Sales came in at 7 lots.
March's Median SALES prices for Residential homes slipped to $504,500 and Condos went even lower to $331,000. Land sales median was $1,050,000 (several high end properties sold).
Days on Market for Residential homes = 156 DOM, Condos = 135 DOM. Land = 97 DOM. (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.)
"Year to Date Sales" numbers are limited in scope as they only compare January/March 2009 to January/March 2008. Short timeframe (monthly) views do not necessarily reflect the longer timeframe trends. Better overview is available from these pages at the end of each year such as 2008's Year End (Dec. 2008) available at: http://www.ramaui.com/UserFiles/File/Stats/December2008.pdf
Year to Date:
Residential unit sales declined (-50%), average sold price = $805,436 (-11%), median price = $537,500 (-11%) and total dollar volume sold = $91,014,232 (-56%).
Condo unit sales declined (-46%), average sold price = $721,082 (-23%), median price = $456,000 (-22%). Total Condo dollar volume sold = $106,720,132 (-59%).
Land – NOTE: Land Lot sales is such a small sampling that statistics in this property class are not necessarily reliable indicators. Land lot sales declined (-61%), average sold price = $511,742 (-40%), median price = $290,000 (-68%), Total dollar volume = $8,187,875 (-77%).
Also, total sales for immediately past 12 months: Residential = 802, Condo = 669, Land = 72. April 6, 2009 - Active/Pending/Contingent status inventory:
April March Feb. Jan. Dec. Nov. Oct. Sept. Aug. June May April
Homes 1,150 1,144 1,134 1,103 1,126 1,111 1,114 1,133 1,176 1,141 1,132 1,148
Condos 1,796 1,794 1,750 1,722 1,700 1,638 1,600 1,618 1,594 1,565 1,535 1,526
Land 662 667 595 575 563 595 552 558 548 545 531 548
IN A NUT SHELL...... the good, the bad….. AND THE CONTINUED UNCERTAINTY ……
While our state of continued financial uncertainty is not conducive to real estate investment, our market seems to be at or near the bottom. The large inventory includes many short sales and REO (bank
owned) properties which will need to be absorbed as sales before we can move ahead.
The irony of the market: When it’s easy to qualify for a loan, more buyers can qualify, inventory is small and prices are higher. Conversely, when it’s harder to qualify for a loan, fewer buyers
can qualify; at the same time inventory is larger (more choices) and prices are lower (better deals).
FOR SELLERS: To be successful, Sellers need to be realistic and beat competing properties with better property condition, careful pricing, good marketing, and flexible, creative terms (including leasewith-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. “Priced Right” is still the determining factor. BEST Deals are selling, everything else is getting old.
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.
Unrealistic Sellers continue to follow the market down and miss current opportunities that later become woefully apparent. They may even end up in a Short Sale or Foreclosure situation. Sellers who don’t really need to sell (just “fishing?”) should stay off the market, and clear the marketplace for those who REALLY have to sell.
FOR BUYERS: Continued low interest rates and first time homebuyer incentives provide plenty of options for Buyers who qualify. Buyers should get Pre-Approved so they can shop in confidence (fewer
last minute disappointments due to non-funding loans). More "short-sales" and foreclosures are happening in the marketplace, yet they can be less of a bargain than they seem, requiring more hurdles to leap and more time (often many months) to close, if at all. Be prepared, but BE REALISTIC. 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 and closing them.
Buyers waiting for the "bottom" may also miss unique properties/opportunities as market forces, qualification requirements and mortgage rates 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: 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.
Mahalo,
Terry Tolman
RAM Chief Staff Executive
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