ATTENTION HOME BUYERS!
Less Than One Month Left On Tax Credit!
Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our
nation, Congress has passed new legislation that:
• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until
April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or
existing home between November 7, 2009 and April 30, 2010.
• Income limits increased to $125,000 for single buyers, married couples up to $225,000.
For more information visit:
http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit
Watch Reality Check’s look at the Current State of the Real Estate Market at:
http://yourwebcast.com/ram/realitycheck.htm
Brief Maui Statistics Overview:
Pages 4 - March's Sales Volume – Residential Sales rose two months in a row at 70 homes sold, while
Condo Sales posted a 46-month high of 122 units sold. NOTE: This month’s condo figures includes
41 New Developer sales in the Honua Kai Project ranging from $573,300 to $5,255,000 which
affects both Average and Median Condo prices.
Land sales rose to 12 lots.
Page 5 - March's Median SALES prices - Homes slipped to $460,000 while Condos rose to $512,250.
Land median price was $600,000.
Page 6 - Days on Market for Residential homes = 133 DOM, Condos = 235 DOM, Land = 230 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. 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.) Also – Short Sales transactions can often take 4-6 months to close thereby extending the
marketplace’s average DOM.
441 Ala Makani Place
Kahului, Maui, HI 96732-3507
Phone: 808-873-8585 ~ Fax: 808-871-8911
Direct: 808-270-4646
E-mail: Terry@RAMaui.com
Overview Page 2 of 3
Pages 10 - 14 - "Year to Date Sales" numbers only compare January – March 2010 to January –
March 2009. 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 2009's Year End (Dec.
2009) available at: http://www.ramaui.com/UserFiles/File/Stats/All-December2009.pdf
Year to Date: Residential unit sales rose (+42%), average sold price = $662,378 (-16%), median price
= $469,000 (-10%) and total dollar volume sold = $113,929,064 (+19%).
Condo unit sales increased (12%), average sold price = $763,932 (-22%), median price = $426,000
(-39%). Total Condo dollar volume sold = $222,304,103 (-12%).
Land – NOTE: Land Lot sales are such a small sampling that statistics in this property class are
not necessarily reliable indicators. Land lot sales increased (+35%), average sold price = $551,910
(-72%), median price = $500,000 (+25%), Total dollar volume = $17,109,200 (-62%).
Also, total sales for immediately past 12 months: Residential = 744, Condo = 925, Land = 125.
April 11, 2010 - Active/Pending/Contingent status inventory:
April Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May April
Homes 1,059 1,043 1,040 996 1,022 1,018 1,036 1,063 1,084 1,087 1,083 1,086 1,150
Condos 1,494 1,567 1,541 1,495 1,496 1,508 1,529 1,581 1,609 1,616 1,644 1,675 1,796
Land 585 568 561 522 585 592 603 606 615 644 656 648 662
Current Absorption Rate base on this month’s inventory divided by March Sales is:
Residential = 15.1 months, Condo = 12.2 months, Land = 48.8 months.
IN A NUT SHELL...... the good, the bad….. AND THE ROAD AHEAD ……
The market is stirring, with mixed indicators showing increased activity and now sales. Inventory was
decreasing, yet bumped up for Homes the last three months. Median Prices are showing some small
upticks. The inventory includes many short sales and REO (bank owned) properties which will need to
be absorbed as sales before we can move ahead to a more normal marketplace, at which time prices
will eventually start to rise. Interest Rates have started to rise from at historic record lows, and the
qualifications are stiffer. The HomeBuyer Tax Credits have had a positive effect, however end soon.
FOR SELLERS: 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. UNLESS- you are motivated to Upsize,
Downsize or Upgrade – While selling now will net less, your next property will cost less.
Sharpen your pencil, talk to your CPA and 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, 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. This can prevent unanticipated escrow fallout or
Buyers whittling your price down during the transaction when previously unknown facts come to light.
Unrealistic Sellers continue to 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: Low interest rates have started to inch up and First time/move-up homebuyer
incentives require purchase by April 30, 2010. Buyers should get Pre-Approved so they can shop in
Overview Page 3 of 3
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 4-6 months) to close, if at all. Be
prepared, but BE REALISTIC.
First-Time Home Buyers – Last Call for the Home Buyers Credits. Don’t let it pass you by….
See link on page 1, 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, and are glad they
did. This low point in the market is your rare chance, so check it out carefully.
Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to
different conclusions that 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.