Aloha from your resident experts!
From April 1 to June 30 there were 11 listings and 8 closed sales. There weren't any expired or cancelled listings at the end of the quarter. There were 3 pending sales and 0 active listings at the end of the quarter.
Sales activity at Aina Nalu picked up even further in the 2nd Quarter, with 11 listings, 8 closed sales, 3 in escrow at the end of the quarter, and no remaining active listings as of July 1.
Prices continue to inch up. The highest priced closed sale was $545,000 for unit C107, a 2 bedroom, 2 bathroom downstairs unit which was not listed on the MLS. Three of the sold properties were not listed on the MLS - the two others were studios that sold for $300,000, the highest price ever for an Aina Nalu studio. Also, unit C101, another 2 bedroom, 2 bathroom downstairs unit, was listed at $565,000 and went into escrow the same week it was listed, and unit K203, an upstairs 2 bedroom, 1 bathroom unit, is in escrow with a list price of $555,000. Unit J105, a downstairs one bedroom unit, is in escrow with a list price of $450,000, and unit H205, an upstairs 2 bedroom, 1 bathroom, sold for $495,000. So, we are finally back to the prices paid when the units were new in 2005 and 2006. Of the 8 closed sales, 4 were 1031 exchanges, 3 were financed, and 1 was cash. Of the 5 sales that were listed on the MLS, 3 involved a Keller Williams Realty Maui agent.
The good news is that while prices are increasing, buyers are coming in with enough cash to close even when the appraisal doesn't come in at purchase price, which is not uncommon in a market with increasing prices.
The lack of available inventory is driving the price increases. Owners are getting calls and receiving emails from realtors looking for property to sell, and some owners are not listing their property on the MLS because they have already found buyers.
Interest rates are still very low, and occupancy seems to be strong so far this year. We have no inventory to sell today at Aina Nalu, so the question remains as to how much further prices will increase this year.
On a year-to-date basis, overall Maui condo sales volume has decreased by 8.7%, and closed sales are down by 4.9%, while the median price has increased by 6.7%. Aina Nalu's year-to-date sales in 2019 are up by 85.7%m from 7 sales in the first half of 2019, while sales volume is up by 112.3%, from $2.930 million last year to $6.221 million in 2019.
It's still a great time for sellers, and we are here to help you if you were thinking of selling.
Aloha Group Maui is a team headed by L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. We are business people, and we treat our clients with the same care and service attitude that we would like to receive when we do business – and we do it with Aloha! We are in business for pleasure and profit. We expect that most of our clients will enjoy the property they own in Maui (pleasure), and it would be nice for everyone if your property performs well for you (profit). Real estate can be highly speculative, and profits are never guaranteed. So if you are buying property in Maui, it’s a good idea to surround yourself with Real Estate Professionals.
Lee Potts holds an MBA and was the President of an international software company. He was also the Marketing VP of a publicly traded company, and has been investing in real estate since right out of college.
Barbara Potts holds an MBA, was a CPA with Ernst and Young, held a financial management position at Apple, was Director of Strategic Marketing for Grass Valley Group (a division of Tektronix), was a business broker in California, and has always been a real estate investor.
We would be honored to represent you with a purchase, sale or 1031 Exchange of Maui real estate. If you’re in Lahaina Town, stop in and see us - our office is across the street in Dickenson Square, in Suite 212.
Copyright 2019 L. Lee & Barbara S. Potts
Statistical information in this newsletter is based on actual sales information reported to the Realtor’s Association of Maui, Inc. While this information is deemed reliable, it is not guaranteed. This newsletter is for informational purposes only and not intended as advice for investment or any other purposes. Real estate is considered to be highly volatile and purchasers and sellers of real estate should always seek expert outside advice before investing.