With so many *headlines* concerning Real Estate changes lately,this should clarify the Maui News reporting a few days ago. Record low interest rates and the lowest Median price on Maui in 5 years, makes it a great time to hop off the fence and think more seriously about a Maui Real Estate purchase. This year, your Maui ownership dream can become a reality.
*"Housing Indicators are Up!"
On May 24th several housing indicators came out: apps, prices, sales. And all were up! - Reuters
*"The national median home price rose for the third straight month in April" - HG Housingwire
*"Hawaii ranks #1 in House Price Appreciation"
Federal Housing Finance Administration’s Purchase-Only House Price Index
*"Oahu Home prices near 5-year high!"
Honolulu Star Advertiser 6/8/2012
And yet on June 11, 2012 the Maui News wrote…
*"Single-family homes at ‘sale’ prices on Maui"
Median price hits 5-year low in May
The median price of single-family homes in Maui County dropped last month to its lowest level in at least five years. Coupled with record-low interest rates, real estate professionals say the Maui home market is at one of its most affordable levels in nearly
"It sounds cliche, but Maui's on sale right now," says the president of the Realtors Association of Maui.... Maui's May numbers are the reverse of what the Honolulu market experienced last month. Those in the industry say because Maui has a much smaller inventory of properties than Oahu, a handful of low-priced homes can skew Maui's averages downward and vice versa.
Why are prices going up on Oahu but Maui is 'on sale'? Just a few months ago we wrote that Maui’s real estate market was starting to turn. The above headlines make it clear that this is a fact in Honolulu as well as in other parts of the country. While Maui tends to lag behind Oahu and the mainland, sometimes numbers can be deceiving.
The real estate market on Maui is turning, with different parts of the market behaving differently. In May, 36% of the closings on Maui were short sale or bank owned, and 25% sold for under $299,999. Also, 13 of these lower priced homes went into escrow more than 4 months ago. So the numbers would indeed be skewed to reflect this brisk activity in the lower end of the market and cause statistics of the overall median price to decline. But, this end of the market is seeing multiple offers and increasing prices, so don't be deceived by the statistics. When inventory is low and multiple buyers vie for the same properties, prices go up.
An important secondary factor in the market picture on Maui is the low inventory. The number of units on the market is down almost 40% from a "normal" market, and this will impact prices.
Conventional wisdom says.... You will not see a market like this again for at least 12 to 15 years. Maui is indeed “on sale”. And it won't be long before Maui's market catches up to Oahu and the rest of the country.
I look forward to helping you with your Real Estate needs.
Cherie Attix R(S)
Windermere Valley Isle Properties