Where has the month gone!  It’s February and we’re just getting around to posting our perspective on Maui real estate statistics for December 2011.   The last month of 2011 finished with 176 sales amounting to a dollar volume of $107,239,840.

RESIDENTIAL:  There were 79 home sales for the month of December. The median home price dropped from $440,000 in November to $411,000 in December. While the average sale price in December soared to $916,863 from November’s average of $547,000. The rise is a results of a significant number of luxury homes and Maui oceanfront homes that changed hands that month.   Of the 79 closed sales, 50 homes, or 63.3% closed under $500,000. 17 properties (21%) closed between $500,000 and $1,000,000; 15% of Maui homes closed over a million.

The high sale occurred within the gated community known as Keauhou at Makena.  This beautifully appointed home situated on 3.069 acres offers expansive views of the Makena coastline, Molokini and Kaho’olawe.  Located directly across the street from Palauea Beach, this magnificent home is comprised of nearly 7,000 square feet of interior living area with 6 bedrooms, 6.5 baths.  The sale price recorded at $15,000,000.

LAND: For land transactions during May, there were 8 closings.  Average days on the market: 471, median: 211 days.

CONDOMINIUMS: Condo sales in December diminished to 89 properties.  195/125 was the average and median days on the market.  The average condo price came in at $349,500 and the median at $304,000.  Over 66% of all the condo sales closed under $500,000.  December’s top condominium sale occurred on the West side of Maui at Honua Kai – Konea Tower.  This 2^nd floor Ka’anapali oceanfront condominium closed at $2,050,000.

Currently, there are 2,171 properties currently listed for sale (non-commercial) through our local MLS system throughout the County of Maui.  Just 9% are listed as distressed properties. The interesting part of this picture is that in December, 45% of the closed transactions (residential, condo and vacant land) were distressed sales.  The disparity between active distressed listings to distressed sales reveals how competitive this sector of market can be for buyers.  If you are interested in purchasing a short-sale or REO, be prepared to act quickly.  Many of these properties, specifically the bank-owned (REO’s) have multiple offers presented to the bank.  The end result is that the bank or financial institution has moved into the driving seat, forcing Buyers to come forward with their best offer upfront. In 2011, 49.4% of all the bank-owned properties closed at or above their list or asking price.  We encourage you to get your finances in order and present your best offer with a pre-approval letter from the lender of your choice.

Click here to the December 2011 and year end statistics for Maui Real Estate compiled by the Realtors Association of Maui.

Cash transactions in 2011 surged to a new historical high.  51% of Maui real estate sales were purchased with cash surpassing the previous year’s high of 45% in 2010.  The historical chart of cash sales below exposes financial institutions loosening qualifying requirements beginning in 2001 with a continual softening until 2008 when the financial meltdown began.

At the peak of the market (2005), the total dollar volume of sales rose to $2.76 billion reflecting 3,849 closed sales.  For 2011, the dollar volume reached $1.346 billion, which is less than half the amount realized in 2005.  In addition, the number of closed sales in 2011 at 2,183 is 56.7% off the high set in 2005.   It’s a bit uncanny given lending rates are hovering at 4%.  However, financial institutions continue to be cautious in their lending practices leaving many who wish to purchase Maui property sitting on the sidelines. Continue reading →