Sales are the number of properties that actually closed escrow. These properties likely went under contract anywhere from 2 to 8 weeks before closing. May was a pretty tough month for real estate on Maui. Home sales declined by almost 50% compared to April and what had been a consistent trend of 80 plus units per month.
Condos have been hit even harder. In March there were 156 sales. In May, only 51 condos sold; that's a drop of 67%.
Ready for some good news? Keep reading.
Pending sales represent properties that are under contract but have not yet closed. Pendings are the pipeline that tells us how many sales are likely to happen in the next couple of months.
While sales dropped in May, pendings got a nice little bump, 13% for homes and 24% for condos. That might indicate that actual sales in June could rise or at least remain stable. Maybe we've hit the bottom?
Inventory tells us how many units are available for sale in each category. Inventory has been lacking for some time. At the beginning of this year I thought sales would be off in 2020 due to lack of inventory, not lack of buyers.
Technically we have plenty of inventory to meet the current demand. However, for buyers looking for a home at or under the median price point there is still an under supply.
For buyers of condos there is plenty of supply at today's rate of sales. However, I believe that there is pent-up demand for condos and I expect condo sales will bounce back.
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 analysis because median is less likely to be skewed by outliers of a few very high priced or very low priced sales.
Even through sales are down, prices are holding. The median for homes hit $800,000 and there is still low inventory at or below that price point. I don't see any indication that that will change, especially as employment starts to come back on Maui and interest rates remain at historic lows.
The condo median selling price hit the highest point this year at $685,000. So, what's selling? The majority appear to be residential condos, meaning condos in complexes that do not allow short term rental. I think people who want to own their home but can't afford a single family home on Maui are the folks buying these condos.
Days on Market: (avg-sold listings)
The days on market (DOM) is the number of days a property has been on the market until close of escrow.
Get more information and details
To get more information on property and trends, you can search all properties listed for sale at www.alohagroupmaui.com. If you can't find what you're looking for there, send us an email to email@example.com and we'll do our best to get an answer for you. As we get more requests for information, we'll add new sections to our website, newsletter or both.
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. Our team consists of talented professionals: Angie Liu R(S), Beau Dyer R(B), Cheri Miller R(S), Keri Nicholson R(S), Paul Goodman R(B), Suni Novotny R(S), and Tony Brow R(B). 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.
Lee, Barbara and the team are licensed under Keller Williams Realty Maui.