83 homes sold November at a median price of $470,000. Last November, 76 homes sold at a median price of $422,500. This calculates to a 9% increase in volume and a 13% increase in median prices when comparing the two Novembers.
96 condos reported sold November at a median price of $390,945. 77 condos were sold last November at a median price of $265,000. This is a 25% increase in volume and a 48% increase in median prices between this November and last November.
22 land sales closed during November of 2012 with a median price of $455,000. There were 9 land sales during November 2011 with a median sales price of $505,000. This is a 244% increase in sales volume and a 10% decrease in median prices.
There were 21 bank owned sales last month. Most of those sales were single family homes, but surprisingly 9 of the 21 were land sales. By comparison, there were 39 bank owned sales in November of 2011. That is a 54% drop in bank owned sales. The lower number of bank owned sales should be a continuing trend with limited numbers of bank owned properties coming on the market. There were 24 short sales that closed last month compared to 22 sales that closed in November of 2011. We are continuing to see a steady supply of short sale closes as banks are working more proactively with homeowners who are delinquent with their mortgage payments.
The priciest home sale for the month closed on Lanai. A buyer paid $4,150,000 for a 5,227 square foot ocean view home in the Manele Bay area of the island. Last November, the priciest sale was $3M for a home in the Pineapple Hill area of Kapalua. Two homes sold over $2M in Maui County including the one on Lanai. There were 10 condos sold in Maui County over $1.5M this November. By comparison, the November 2011 numbers were 2 homes sold and 4 condos sold above those respective price points.
Buyer activity remained strong with 249 properties going under contract during the month of November. This means November 2012 trumped October 2012 for the title of busiest month for new escrows this year. This is actually one of the busiest months in several years. The increased activity is a reflection of a shift in the market.There are quite a few things worthy of discussion in this month’s Maui statistics. The increase in condo medians is a number that jumps off the screen. To be clear, condo values on Maui have not increased by 48%. This is a classic case of medians changing due to big shifts in sales activity at different price ranges. In November 2011, there were ten sales under $100,000. This November, there was only one sale under $100,000. Shrinking inventory at the lowest price ranges combined with modest price increases translates to far fewer sales below $100,000. Conversely, there was an increase in luxury condo sales this month with ten sales over $1.5M. This compares to four sales over $1.5M. More high end sales and less low end activity means a bump in median value regardless of what is going on with property values. While there have been some price increases between this year and last in segments of the Maui condo market, those increases in value have been far less than 48%.
The land market is another segment that produced eye catching numbers with a 244% increase in sales volume. It is important to keep in mind that part of the reason for the dramatic increase can be attributed to the low number of sales in November 2011. We have seen a few small spikes in land market activity over the last couple of years. Most of the spikes could be attributed to buyers responding to values in the market. There were a total of nine bank owned sales in the land market last month, and it can be argued that each of these sales were good comparative values. If the market stays true to recent form, we might expect to see land sales volume dip again next month.With inventory shrinking on the home market, there may be more buyers looking for alternatives in the land inventory.
As noted above, the highest priced sale of the month for Maui County occurred on Lanai. In addition to that home sale, three of the ten condo sales were over $1.5M and were in the Manele Bay area of Lanai. Since Larry Ellison purchased the island of Lanai, and we have speculated that there may be an uptick in the Lanai second home market. It appears that this may be coming to fruition. In the first six months of the year, there was only a single sale over $1M. After Ellison’s purchase, there have been 5 sales over $1M.
Well priced properties are seeing multiple offers. What does this all mean for buyers and sellers? Buyers are continuing to find good values, but constrained inventories among many property types require buyers to obtain pre loan approval. Buyers need to remain proactive so that they can submit offers quickly when the right property comes along. Get pre-approved before you start looking. It will determine your budget and give you a strong position when you submit an offer.
Sellers will need to closely analyze their property segment when determining current market prices. Sellers need to price well. Well priced properties are getting interest. Overpriced properties are languishing. Contact Michele Muir White R(S), ABR, SFR, Coldwell Banker Island Properties (808) 298.8448, michelewhite@hawaii.rr.com if you need assistance buying or selling Maui real estate.
