Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
• Income limits increased to $125,000 for single buyers, married couples up to $225,000.
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Brief Maui Statistics Overview:
December’s Sales Volume – Residential Sales posted a 17-month high (90 sales) and
Condo Sales rose to 80 units. Land sales dropped to 9 lots.
December’s Median SALES prices – Homes rose to $477,000 while Condos remained nearly steady at $401,500. Land slumped to $305,000.
Days on Market for Residential homes = 154 DOM, Condos = 170 DOM, Land = 111 DOM.
Year to Date Sales numbers compare January/December 2009 to
January/December 2008. Short timeframe (monthly) views do not necessarily reflect the longer timeframe trends. This month is the 2009 Year End and can be compared to 2008’s Year End (Dec. 2008) available at:
Year to Date: Residential unit sales declined (-24%), average sold price = $713,946 (-14%), median price = $498,106 (-14%) and total dollar volume sold = $494,764,887 (-35%).
Condo unit sales increased (4%), average sold price = $719,993 (-22%), median price = $450,000 (-18%). Total Condo dollar volume sold = $593,273,850 (-18%).
Land – NOTE: Land Lot sales are such a small sampling that statistics in this property class are
not necessarily reliable indicators. Land lot sales declined (-10%), average sold price = $1,111,387 (+12%), median price = $485,000 (-31%), Total dollar volume = $121,141,185 (+23%).
Also, total sales for immediately past 12 months: Residential = 693, Condo = 824, Land = 109. December 7, 2010 – Active/Pending/Contingent status inventory:
Current Absorption Rate base on this month’s inventory divided by Dec. Sales is:
Residential = 11 months, Condo = 18.6 months, Land = 58 months.
IN A NUT SHELL…… the good, the bad….. AND THE ROAD AHEAD ……
The market seems to be getting its footing as Number of Sales increase, Inventory decreases, yet Median Prices bounce along the bottom. The inventory includes many short sales and REO (bank owned) properties which will need to be absorbed as sales before we can move ahead to a more normal marketplace, at which time prices will eventually start to rise.
FOR SELLERS: Sellers who don’t really need to sell (just “fishing?”) should stay off the market, and clear the marketplace for those who REALLY have to sell.
To be successful, Sellers need to beat competing properties with better property condition, REALISTIC pricing, good marketing, and flexible, creative terms (including 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. “Priced Right” is still the determining factor.
BEST Deals are selling, everything else is getting old.
Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage knowledgeable offers from realistic Buyers. Doing this can prevent unanticipated escrow fallout. Unrealistic Sellers continue to be ignored by the market and miss current opportunities that later become woefully apparent. They may even end up in a Short Sale or Foreclosure situation that could have been avoided.
FOR BUYERS: Continued low interest rates and Newly Extended first time/move-up homebuyer incentives provide plenty of options for Buyers who qualify. Buyers should get Pre-Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans). More “short-sales” and foreclosures are happening 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. Posted by Maui Board of Realtors