Not surprisingly, the majority of real estate figures throughout the Maui area are down in the first quarter of 2009. However, some investors are keen to point out that some areas actually showed higher sales figures suggesting that hope is on the horizon. The last two months for Maui real estate have been the worst in the last two years but with some pockets of increased sales figures might indicate that the downturn has reached its lowest point and figures will start improving.
Trends are a bit early to read and many cautious real estate experts are advising that at least 3 or 4 months of real estate sales data needs to be collected before any definitive statements can be made. As far as overall sales numbers are concerned, the first quarter of 2009 showed a marked decline. Declining statistics were also seen in average and median sales prices and dollars generated. Minor improvements on these first quarter trends may or may not be merely an anomaly.
The following are more specific statistics:
- Compared to the first quarter of 2008, 50 percent fewer single-family homes were sold. This represents a drop from 228 sales in 2008 to 113 sales in 2009.
- Single-family home sales averages also dropped from about $910,000 to $805,000 which is an 11% dip.
- Median single-family home sales prices also dropped 11% from around $603,000 to $538,000.
- Finally, the total dollars generated on single-family homes came down a staggering 56% from $207.5 million in 2008 to $91 million in 2009
- Comparatively, figures for condominium sales faced similar drops.
- The total number of condos sold fell sharply. In 2008, 276 sales were finalized in the first quarter but only 148 this year.
- Average condo prices took a larger dip than housing prices going from $940,000 in 2008 to around $721,000 this year. This represents a 23% decline.
- Similarly, median sales prices tumbled 22% from $587,000 to $456,000.
- And finally, the total dollars generated through condo sales fell nearly 60% from about $260 million to $106 million.
Still, there appears to be a glimmer of hope. Some regional figures fared much better than the averages throughout Maui suggesting that things may be looking up in the near future. Central Maui, for example, was the most active region for sales of single-family dwellings. In this location, average housing prices actually increased a modest 5% despite a drop in the number of transactions. While 103 first quarter single-family house sales were tallied in 2008, only 47 were completed in 2009. Another example of modest increases in average housing prices is Kihei. Sales activity did drop 13%, from 36 sales last year to 23 for the first quarter this year; average sales prices actually increased an impressive 9%. This means the average single-family home increased from nearly $650,000 to over $700,000.
Resort areas like Lahaina and Wailea-Makena also had improved figures with regard to median price of single-family homes. In Lahaina, median sales prices raised a very impressive 57% and average sales prices went up around 20%. Similarly, Wailea-Makena benefitted from a 26% rise in both median and average sales prices.
As far as condo owners are concerned, positive growth for condo sales was much less likely. Still, in Kaanapali condo prices were 27% higher this year than last and median prices were up 22%. In fact, the sales of Kaanapali condos also showed positive growth compared to a year ago with 37 condos sold in the first quarter this year compared to 12 last year.
Nonetheless, now is the perfect time to buy! Housing and condo prices are at the lowest point they’ve been in years and it’s not likely that prices will drop much more. The market is tightening up and there are fewer available properties as home owners are reluctant to sell in the current market.
Posted in Maui Real Estate |
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