2020 Yearend - Sales Statistics
At this time last year, we anticipated a slowdown in sales of single family homes at the mid to lower price points. We warned that the lack of inventory would keep prices strong. We made the point that the luxury space has lots of inventory and there were, and are, some very good values in higher end homes and condos.
Well, we got most of that right, but, the slow part? Not as much a I expected.
Sales of homes on Maui overall dropped just 1.9% from 1,139 in 2018 to 1,117 last year. The "go to" areas for buying mid to low priced homes, Kahului and Wailea, had sales decreases in the 6.5% range. However, there were big gains in sales in Kapalua, Lahaina, and throughout the Upcountry areas including Makawao, Pukalani and Kula.
Like single family homes, the slowdown in condos sales was small, only a 3.1% drop, from 1,657 a year ago to 1,606 in 2019. Kihei, Kapalua and Lahaina were the big gainers. Lahaina had a big boost by the new sales in Kahoma Village.
Pending Sales: along with other key statistics, are detailed below:
Pending sales represent properties that are under contract but have not yet closed. Given the inventory, especially at the hot price points, which we address in the next section, the number of pending homes sales is astonishing. Pending sales on the 1st of January were up 44% over January of 2019. There are some new developments that have some pending sales, but that doesn't account for this kind of jump in pending sales.
Overall there was virtually no change in the number of pending condos, so we should expect strong numbers of closed sales for the next couple of months.
Inventory tells us home many units are available for sale in each category. Inventory on January 1 was down 10% from last year for both homes and condos. Since overall sales were off only in the 2-3% range, a further decline in inventory could likely signal a slowdown in overall sales.
Selling Prices: Average and median sold prices.
We look at Average and Median prices in all categories. A lot of people like to know the average price; however, we tend to use median for most of our analysis, because median is less likely to be skewed by outliers of a few very high-priced or very low-priced sales.
The average selling price for a home is up 5.7% from last year. The median price is up 4.4% to $740,677. However, of the 457 homes for sale, only 91 are priced at median or less.
The average price for condos has dropped steadily since peaking in September. Since fall is typically our slower time of year, I can't yet say this is a trend, especially since the median price is up 3%.
Days on Market: (avg-sold listings):
The days on market is the number of days a property has been on the market until close of escrow. That number seems stable. Normal financed sales take 45-60+ days, so on average homes and condos are on the market up to 100 days before they go into escrow. I believe we are still seeing a downward trend in days on market. The reason for this is the competition for well-priced listings with strong demand.
There are plenty of buyers waiting for the right property, and interest rates continue to be low, so if you have ever considered selling your property, it's a great time to do so.
Be sure to visit us online at AlohaGroupMaui.com
A hui ho!
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About Aloha Group Maui
Aloha Group Maui was founded 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. We are in business for pleasure and profit. We expect that most of our clients will enjoy the property they own on 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 fi you are buying property on Maui, it is a good idea to surround yourself with a professional team.
Lee Potts is the former President of an international software company and former Marketing VP of a publicly traded franchise organization. Lee and Barbara are both licensed under Keller Williams Realty Maui.
Barbara Potts was a CPA with Ernst and Young before joining Apple Computer back with both Steve's were there (Job and Woz). She was also Director of Strategic Marketing for Grass Valley Group, a division of Tektronix, and a business broker in California.