From April 1st to June 30th there were 4 listings and 2 closed sales. There weren’t any expired or cancelled listings at the end of the quarter. There were 2 pending sales and no active listings at the end of the quarter.
Aloha from your resident experts!
At the end of the 2nd quarter, there were no active listings at Aina Nalu, and two were in escrow. One of the properties, H-206, is still in escrow at this time. It’s a nicely remodeled upstairs 2 bedroom 1 bath unit priced at $475K. The other unit closed in July. It was K-106, a 1 bedroom downstairs unit that sold for $380K. Two sales closed during the 2nd quarter: J-106, a 1 bedroom downstairs unit that sold for $375K, and C201, an upstairs 2 bedroom 2 bath unit facing the large pool and pavilion that we sold for $495K. This was the highest sales price at Aina Nalu since the units were sold new from the developer in 2006.
We have turned a corner at Aina Nalu regarding sales prices! Since the closing of C-201, we have listed another 2 bedroom 2 bath downstairs unit, B104, for $525K. We have already received an offer on this property.
We clearly have a seller’s market situation at Aina Nalu today. So far this year there have been 8 sales, so we have averaged 1.33 sales per month. With only 1 active listing at this time, we have less than one month of inventory on hand. There is unserved demand at this time; both investors and future residents have seen the value of the location, floor plans, amenities and potential rental income.
Maui 2018 condo sales on a year-to-date basis have increased by 22% from 2017 (compared with Aina Nalu, sales which have decreased by 38% due to lack of inventory for sale). Maui condo median sale prices have risen by 4.2%, while Aina Nalu median sales prices have increased by 8.3%. Months’ supply of Maui condo inventory in June 2018 was 4.2 compared to 6.3 in June 2017. Overall demand is strong and supply is low.
Where do we go from here? The Fed recently increased interest rates by .25 percent, and expectations are for rates to continue on an upward trend in the next year. The Maui single family homes inventory is down by 18.3% from last year, but single family home prices for sold properties have actually decreased by 2.1% on a year-to-date basis. Median home prices are now $727, 500, compared to median condo prices at $515,000. Some buyers are looking at condos for the affordability and availability when they would prefer single family homes.
Economic experts are predicting a pricing trend of 4-5% increases in the next year or so, with a predicted slow down due to lack of inventory and affordability. It’s still a great time to sell if you are thinking of doing a tax-free 1031 exchange, moving up to a higher priced property, or switching to a property in a different location. We can help!
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Aloha Group Maui is a part of KW Island Living, the Keller Williams Maui franchise. We can help you buy, sell or exchange 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.