As of the end of November, year to date single Maui family homes sales were off by 4% but the average sales price increased 22%. For Maui condos, the opposite was true as we saw an increase of 11% in sales and a decrease in the average sales price by 5%. For vacant Maui land, there was an increase of 5% in the number of parcels sold and prices increased on average by 1%. To view all the Maui Hawaii real estate sales statistics, please go to the Realtors® Association of Maui Website where you can view graphs, tables, and find statistics going back as far as 1998. We suggest that you bookmark this website as it provides much valuable information about the Maui Hawaii Real Estate Sales market.

It has been said that statistics can tell different stories depending on who is interpreting them. For example, when there are few sales, a couple of very high end sales can skew the average, so in this case the median price might be a better indicator as to the direction of prices; however, even median prices can be misleading.

For example, the average condo price on Maui decreased by 5% through November of last year. Does this mean prices for condos are dropping? Not at all. It means simply that more people were buying lower priced Maui condos last year than the previous year. This was probably caused by a decrease in the inventory of higher priced condos or a shift away from this category towards more affordably priced Maui condos or some combination of both of those factors.

In our opinion, the very tight market for long term rentals along with substantial increases in rents and low interest rates has spurred the demand from both first time home buyers and investors. For example, one only has to look at condos in Kihei such as Southpointe, Keonekai Villages, Kihei Villages, Haleakala Gardens where prices have risen approximately 20% during the previous year.

New single family Maui homes in the $600,000 and under range was another hot area last year. New projects such as Schuler's homes at The Island, and Town Development's project at Ke Ali'i Kai sold out with prices rising dramatically even before all the homes were finished. We suspect the same thing will be true of their latest development at Kilohana Ridge where they have way more reservations than they have homes for sale. At this time, the demand for new homes is exceeding the supply which is putting upward pressure on prices and keeping home builders very busy.

The high end Maui Hawaii real estate sales market is a slightly different story as inventory levels have increased and sales have slowed. This is not to say that the high end market is dead or that we expect to see prices fall. There is certainly the possibility of some price deflation; however, if the Wailea Beach Villas project is any indication of how the high end market might do in the near future, we have great cause for optimism. This 98 unit project to be built over the next 22 months came to market last week, and in just two days, 79 got snapped up at the Grand Opening prices which ranged from about $1.1 to 5 million. Prices on the remaining units were increased in price by 10 to 15% and as of yesterday, there were 11 more sales. I suspect that there may be a few buyers who will cancel during their 30 day right of rescission period, so there is still time to take advantage of this fabulous opportunity to buy into what will be the most exclusive condominium project on Maui. Go to the Wailea Beach Villas website for more information.

If you do not own any property on Maui and have been thinking about buying, in our opinion, it is still not too late to jump on the bandwagon. The market is hot and prices are likely to move higher given the strong demand and limited supply. In fact, barring any major downturn in the economy or some specific act of terror or war that specifically affects the tourism industry in Hawaii, we suspect that prices may continue to move higher over the next several years. If you have not already done so, please read the article, "Hawaii Home Prices Expected to Increase Up to 45%".

We are still finding properties that in our opinion are well priced relative to the market. Throughout the year, we will continue to alert you to these exceptional buys. Keep checking the Hot Buys on our Website which we will update as often as possible and also bring to your attention via our Newsletters. See a few new hot buys in this Newsletter shown below as well as our "Maui Hawaii real estate sales Featured Listing" above.

Since it is impossible for us to be aware of every listing on Maui, we encourage you to also do your own searches. When you see something that looks like it might have promise, let us know and we would be happy to send you additional information and help you decide whether or not it might be suitable for you.

Wailea Beach Villas - We believe this one will be sold out within a few days, but there may be some fall out over the next 30 days. If you have any interest, please be sure to contact us. Wailea Beach Villas Website.

If you have an interest in any of these projects, please let me know and I'll send you additional information as it becomes available.

Mahalo Nui Loa,

Ken and Greg Smith

P.S. Sorry for the delay in getting this Newsletter out and the lack of new Hot Buys this time around. With the Holidays and lots of clients in town, we just did not have the time to put it together or to send out more new Hot Buys. We will make it up to you in upcoming issues. If you have an immediate need, to buy or sell property, please do not hesitate to call or e-mail us. We will make your needs a priority.