A Review of Maui Real Estate for 2011

Welcome 2012!

We wish all of our viewers a very inspiring, healthy and wondrous New Year. Vincent and I continually feel blessed to call Maui our home. It’s an added reminder when visitors recognize what we often take for granted.

Just the other day while stand-up surfing, I met a gal from Michigan who was here on island visiting her brother over the holidays. We chatted a bit about her current and past visits to Maui and her brother moving here in 1993 to work at the college. As we conversed, she said, “You live on the nicest place on earth!” Her statement took me back a bit. I replied, “Really, no place is perfect”. She replied, “It’s pretty darn close! The people are so friendly, the weather is so agreeable, the landscape is absolutely stunning.” I didn’t have my business card to hand her out in the water, but I’d say she was sold on Maui.

Although our real estate values have dropped significantly from the peak in 2006, Maui remains a very desirable place to live and visit. In reviewing the overall Maui real estate market for 2011, we’ve had a year that indicates mixed reviews and subtle hints of improvement.

Maui Real Estate Statistics 2011

Although the total dollar volume of sales for 2011 dropped 4.8% from 2010, the number of sales transactions improved 4.3% from the previous year.

The median sales price of all sales for 2011 amounted to $370,000 and is a return to the median price between the years 2003 and 2004. While the average price at $618,325 is a return to 2004-2005 values. Bear in mind these figures combine all sales, inclusive of land, condos and residential homes.

The number of days on the market improved dramatically, declining 23%, (2011: 217 days; 2010: 281 days and 2009: 289 days) revealing an indication that many Sellers are coming to terms with market conditions.Sales in the distressed market surged 8% in 2011 from the previous year. The number of short sales remained even at 12%. REO’s (bank owned real estate) aka, foreclosures on Maui increased from 18% to 26%. As a result the sales in the distressed market sector grew from 30% in 2010 to 38% in 2012.

Maui’s residential real estate sales reveal some interesting numbers at the close of 2011. The number of home sales improved again over 2010 by 10%. In 2010 Maui home sales increased 16% from 2009. The interesting part of the picture is that gap between the median price and average price seems to be growing wider apart. In 2011 the spread grew to 45%, the widest margin since the Realtors Association of Maui’s online MLS record keeping began in 1994. In 2011, we had a phenomenal number of Maui oceanfront home sales. The highest sale for a single family home closed at $27 million! This Makena oceanfront estate sold back in 2007 for $19.2 million.

On the other end, the low sector of the market is on par with values in 1995. While the average Maui home price increased in 2011 and 2010, the median price has continued a downward trend each year from 2006. At the end of 2011, the median home price in Maui County fell to $433,500, a -5.8% drop from $460,000 in 2010. The average Maui home price rose to $789,099, a 5.9% increase from 2010 at $745,367.

Clearly, these are unusual times in our market and a mixed bag of values. Maui’s oceanfront properties and luxury real estate are in demand in addition to our market priced under $500,000. Maui’s real estate market appears to be moving into more favorable conditions between Seller’s coming to terms with market conditions and Buyer confidence improving. I feel it’s going to be a favorable year! Now where can I order waterproof business cards?

The real estate figures noted above cover all the islands within the County of Maui and includes the islands of Lana’i and Moloka’i. Property values will vary significantly island to island, district to district and within the various neighborhoods.

If you would like more information regarding our statistics, or have questions about our market, please feel free to contact us. We’d be happy to assist and answer your questions.