The latest report from the Realtors Association of Maui has revealed that all categories in the Maui real estate market grew in August. A slow and steady increase is the best sign of reliability, so it’s important not to take the odd spike too seriously in a small market like ours. That being said, all gains are good news.
According to the report, there was a 23 percent jump in the median sales price of condos, compared to the same month last year. The median was $420,000 with 113 sales as opposed to a median of $342,450 with 98 sales in August of 2012. One of the likely reasons why the price increased faster than the rate of sales is that inventory is shrinking and sellers have returned to the point where multiple offers are common.
As for single-family homes, August saw 79 sales on Maui and two on Lanai. There were 77 sales in August of last year. Despite the small gain, it’s good to see that sales are steady and strong. The median price for a single-family home was $585,000, which was 15 percent higher than the $509,000 median in August 2012.
As in the case of condo prices, home prices are also on the rise thanks to shrinking inventory and multiple offers. The bank owned and short sale properties that flooded the market during the Great Recession are just about nonexistent now. In fact, inventory has dropped by 12-17 percent in the past 12 months. That’s a major change with obvious consequences to home prices.
If you’re in the market for a South Maui home or condo, we’d be happy to assist you with your search. We recommend that you get pre-approved for a loan so you know how much you can afford, and that you take advantage of interest rates before they climb too steeply. There are a lot of well-priced homes and condos on the market that are great buys if you know how to find them. We’d be happy to assist you in doing so. You can find our contact at the bottom of the page! Mahalo and happy hunting!
RealEstateMauiHawaii.com – By Mark Harbison