This is the moment everyone has been looking for.
Maui inventory is at an all-time low. Buyers are actively looking. Maui visitor count is up, and so are the inquiries about real estate.
Maui usually has about 1,200 homes and 1,500 condos available for sale at any given time. We currently have about 750 homes and 1,100 condos on the market. This lack of inventory is creating competition among buyers. We are seeing multiple offers in the lower end of the market. Units in the $100,000 to $300,000 range have fierce competition and as a result they are in contract within days, if in reasonable condition and priced right. In numerous instances we are now seeing multiple offers and units close above asking price.
This is a new development. As an example, 4 months ago there were 5 Southpointe condos on the market, now there are none available. 4 months ago a 2 bedroom 1.5 bath Southpointe unit was selling for $125,000 and now they’re going for $135,000. That’s an 11% increase!
In the higher end of the market, things are changing slowly, but they are changing. Sales of homes of a million dollars or more in the first quarter of 2012 are up 20% over the same 3-months last year. However, condo sales in this price range are down. But we can’t expect the change to be apparent in all sectors simultaneously. Inventories have declined nearly 22% over 12 months. The US economy seems to be in a continuing recovery; the National Association of Realtors is predicting existing-home sales will jump 7 to 10 percent nationwide in 2012 to the highest level in five years, based on an "uneven but higher sales pattern" so far this year.
With interest rates still at an all-time low, buyers are ready and excited to purchase on Maui. Maui’s real estate prices are at the level they were in early 2003. With the coming months expect to see further shifts in the market as competition increases and prices will start the upward climb in a new real estate cycle.
Mahalo to Windermere Valley Isle Properties for this newsletter.
If you have thought about a home purchase on Maui, this is a good time to start your search. It may be challenging to find what you want, but, prices are still good and we hope to see an increase in inentory. I am available and ready to assist in finding your Maui home.
Cherie Attix R(S)
Windermere Valley Isle Properties