The Current Maui Real estate market trends for June 2013
The Residential home median price rose to $615,000, the highest since Aug. 2008. The Condo median price increased to $390,000. Land median price rose to $469,260. Days on Market has Shrunk Residential homes = 116, Condos = 143 DOM, Land = 105 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.
Total sales for immediate past 12 months: Residential=983 (with 26% being Foreclosures or Short Sales), Condo=1,257 (14.2% Foreclosures or Short Sale), Land=193 (14% Foreclosures or Short Sale).
Current Absorption rate JUNE: Residential 6.5 months of active inventory, 6.4 months of active inventory, 23.4 months of active inventory. Definition of ‘Absorption rate’ the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month. The figure shows how many months it will take to exhaust the supply of homes on the market. A high absorption rate may indicate that the supply of available homes will shrink rapidly, increasing the odds that a homeowner will sell a piece of property in a shorter period of time.
Inventory is down, Sales are up! Prices are rising…Interest rates are steadily rising!! It’s time to Move!Increased showings and sales, multiple offers on “well priced” listings, hesitant buyers become onlookers….The window of opportunity is quickly closing for first-time homebuyers. Well priced properties are attracting multiple offers and making for a quick sale. Inventory has declined 16% over the past 12 months in Residential and Condo classes. Which is making it a competitive market for buyers who are hesitating. Most of Maui is in a Seller’s market***
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. 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. As prices rise, some “Owners” will decide to become “Sellers.”
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.
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 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.
***Information provided by RAM Maui, June 2013 Statistics.
There are still many different loan options for First-time home buyers contact me and I can give you 3 different well-qualified lenders that can give you many loan options to suite your life and income qualifications. If you are not able to qualify right away there are still a few home buyer clubs that can help you become creditworthy and purchase a home in 6 months to a year from now. The low point in the market is your rare chance, so check it out carefully don’t delay. The opportunity is fading quickly!
Visit my website www.CiaraQuam.com to do a market search. Contact me Ciara Quam for a market analysis and a one on one meeting to see how I can help you find your piece of paradise on Maui~
Have a beautiful day in Hawaii Nei…