Although we are just beginning to see the effects on selling prices, Supply and Demand curves for Maui Real Estate are indicating a strong potential for Sellers of South Maui property. As we suggested in our recent mailer, supplies (or inventory) of property listed for sale peaked in the winter months of 2009 and has been falling fairly consistently since that time. Sales (or contracts going into escrow) appeared to “bottom out” at about the same time and have been increasing (albeit with very pronounced, seasonal peaks and valleys) since.
The number of South Maui properties available (Active & Pending) has dropped from a high of over 1100 in 2009 to slightly more than 500 in October of this year: a drop to less than 50% of the properties available at the peak! Meanwhile, total Maui County inventories have dropped to about 66% of the peak in 2009. Although market trends for Sellers have improved all over the island, South Maui definitely leads the comeback!
SALES AND INVENTORY TRENDS:
After an unusually soft winter market in September, 2008 through April, 2009, South Maui market patterns returned to “normal”, strong winter buying cycles, particularly with condominiums, as very dramatically demonstrated by this chart:
As might be expected, there are some differences in the finer details of trends for different property groups (Kihei & Wailea, Single Family & Condominium, etc.), but in general the picture is the same: Dropping Inventories ("SUPPLY");
and, Rising Sales ("DEMAND")!
Each of the sub areas available in South Maui vary some from this overall trend.
PRICING TRENDS:
So, how does this affect you? What is happening to prices? How does this affect timing of a possible purchase or sale of a Maui property?
As recently reported by the National Association of Realtors, median prices of homes throughout the country may end up slightly lower at yearend than they were in 2010. We are finding that the average prices of homes in South Maui have already begun to tick slightly upward.
While single family home prices seem to have increased significantly, South Maui Condominium prices are flat or slightly lower than a year ago. The factors appear to be in place for a condominium price turnaround in the near future.
If you are thinking about possibilities of buying or selling Maui property, let us provide a no cost consultation to develop an informed strategy for action. Meanwhile check out what is availble now from our home page.
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