As summer unfolds and we look back over the first half of 2013, we all wonder “What’s next?” Interest rates have inched up some causing some buyers who are looking for lower priced homes and condos to either not qualify or be priced out of the market. The investors are generally not hurt by these minor fluctuations in the interest rates.
Overall June’s sales have remained strong compared to historic levels. May’s sales were slightly more, but part of the puzzle is the notable shrinking inventory. With fewer properties available for purchase there are accordingly fewer sales. One of the strongest indicators is the “days on the market” statistics. Currently, homes are at 116 days, condos are at 143 days and land is at 105 days. Note that these numbers include about 45-90 days of escrow time. All this points to higher prices which are reflected by home median prices rising to $615,000 (a 5 year high) and median condo prices have risen to $390,000.
Inventory has declined 16% over the last 12 months in both homes and condos. Bank Owned and Short Sales are becoming scarce with the so-called shadow inventory diminishing and slowly trickling onto the market. Mortgage rates are inching up which may motivate pent-up demand for vacation and retirement homes on Maui. Personally, we continue to see more than 50% of transactions using cash. The market in many parts of the mainland United States has improved tremendously. We all hear stories of 30 or more offers on one property with the final sales price well above the asking price. That has not happened so far on Maui except in a few isolated cases. A stable but improving market is more desirable than an overheated market. So far, so good on Maui.
In a July 12th presentation on Maui, Paul Brewbaker (considered by many to be THE economist of Hawaii) said “We have turned the corner”. He also said that during the first 6 months of 2013 single family home prices on Maui jumped 20 percent. “The values are back now,” Brewbaker said after his presentation. He also said that inventory continues to shrink and “The demand side is coming back.” For the complete article follow the link below.
For complete video of Paul Brewbaker’s economic broadcast (very entertaining) go to :
Click to access Brewbaker_RAM_presentation_July_2013.pdf
We would appreciate and love your letting us know how your real estate market is reacting these days. We’ll share your experiences on our blog (with or without your info ~ up to you).
We are also pleased to report that the Hansens continue to be on the cutting edge of technology with the NEW! iPad and Tablet optimized website available at http://www.mauirealestate.net/tablet/ or find our iPhone and Android Apps @ Hawaii Real Estate App. Our website allows you access to all properties for sale on all of the Hawaiian Islands and continues to highlight our featured listings.
Thank you for your continued support of The Hansen Ohana. If you or someone you know is considering buying or selling property please call or email us for a confidential consultation. Mahalo Nui Loa !