From April 1st to June 30th there were 8 listings and 6 closed sales. There weren’t any expired or cancelled listings at the end of the quarter. There was 1 pending sale and 1 active listing at the end of the quarter.
Aloha from your resident experts!
The 2nd quarter was unusual - 5 out of the 6 units sold in Q2 actually went into escrow in Q1. Inventory dropped from 13 listings during Q1 to 8 listings in Q2, of which 5 were already in escrow at the beginning of Q2. So there were fewer closings in Q2 (6) compared to Q1 (7), but the issue is a lack of inventory to sell!
At the end of Q2, June, there was only one active listing for a 1 bedroom and one 2/2 downstairs unit already in escrow which is expected to close in July. We have already had offers on the 1 bedroom listing and expect to open escrow soon on that unit. At that point, there will be no active listings for sale.
We have folks asking us to let them know when we have additional units for sale.
The good news is that the prices have continued to stabilize at the higher levels; the sale prices for 2/2 units in Q2 ranged from a low of $380,000 (for a unit that was sold without being listed on the MLS) to a high of $430,000. The median sold price for a 2/2 unit in Q2 was $424,000, compared to $390,000 in Q1 - that is a 10% increase in one quarter. So the economic law of supply and demand is in effect – low inventory and high demand is resulting in higher prices.
What’s also encouraging is that of the 6 sales in Q2, only 2 were cash deals, and some buyers came to the closing table with additional cash when the condo appraised for less than the purchase price. So we have new comps to support the recent higher prices, and buyers are having enough confidence in the economics to finance their purchases. We are also seeing more 1031 exchanges in today’s market, which shows that investors also have confidence in the market.
Overall condo sales in Maui have increased 10% on a year-to-date basis, and the median price is up 12%. Inventory levels are down, with a total of 867 condos for sale in June 2017 compared to 993 active listings in June 2016.
All indications are that the market is still healthy. Interest rates have increased a bit but are still low compared to historical levels. At the time of this writing, 30 year fixed rates are a little over 4%. So it’s a good time to sell and still a good time to buy!
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Aloha Group Maui is a part of KW Island Living, the Keller Williams Maui franchise. We can help you buy or sell a home or condo - for you to live in full time, part time or as an investment. Learn more about Maui Real Estate in our Maui Real Estate 101 resources section. Stay informed of market trends by reading the Maui Real Estate Advisor. We are your Maui Real Estate Professionals.
