Maui Real Estate Market Statistics

All August 2016 <- Click on link for full PDF file.

441 Ala Makani Place
Kahului, Maui, HI 96732-3507
Phone: 808-873-8585 ~ Fax: 808-871-8911
Direct: 808-270-4602
E-mail: [email protected]

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IN A NUT SHELL…… Monthly Residential and Land Sales remained steady while Condo Sales numbers
increased. Inventory has decreased from Jan. – May (High Season) numbers. Canadian investors have
been big participants in Maui’s real estate market in years past, however the current Canadian Dollar
exchange rate (.77 US $) may motivate Canadian investors to sell, rather than buy OR sell and reinvest in
other Maui properties.
Increased showings and sales, multiple offers on “well priced” listings, hesitant buyers may become
onlookers…… Window of opportunity is quickly closing for first-time homebuyers (see below).
“CASH is King!” when making an offer. For several months approximately 37% of all sales were CASH.
Well priced properties are attracting multiple offers making for a quick sale. 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, giving them a strong negotiating position, no financing
/appraisal hassles and a quick closing. While general U.S. economic news looks cautiously hopeful, current
World and US events and election will have ripple effects on cost of living, consumer confidence, Financial and
Real Estate Markets.
Rising Sales prices cause some “Owners” to become “Sellers,” putting their homes on the market.
FOR SELLERS: Sharpen your pencil, talk to your CPA and your 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. 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.
Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage
realistic offers from knowledgeable Buyers. This can prevent unanticipated escrow fallout or Buyers whittling your
price down during the transaction when previously unknown facts come to light.
FOR 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 4-6-12 months) to close, if at all.
Be prepared, but BE REALISTIC. Lenders are more stringent on requirements now for loan approval, compared
to 2004-2008.
First-Time Home Buyers – Many programs are available….. 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 own a home,
and are glad they did.
The low point in the market has passed, so check it out carefully NOW, don’t delay. The opportunity is
fading quickly. If you can’t buy now, start saving your down payment for the next market cycle.
Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to different
conclusions that looking at 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.
If you have any questions regarding hard numbers, call Terry at 808-270-4602.
Mahalo,
Terry Tolman
RAM Chief Staff Executive