January 2015 Statistics
IN A NUT SHELL……
Monthly Residential and Condo Unit Sales numbers bounce up and down the last few months
somewhat, with Residential and Condo Inventory increasing during the Winter Vacation
(High Sales) season.
There is a noticeable bifurcation of the Market Place right around the $1,000,000 mark.
Properties listed just under $1,000,000 sell quicker, those that are $20-60,000 over are slower
to sell, even with similar condition and on the same street. Obviously more people can afford a
less expensive home; however there seems to be a buyer resistance to crossing that 7 digit
threshold (sellers take note).
2014 Year-to-Date Median and Average prices were rising across the Residential, Condo and
Vacant Land markets despite lower number of unit sales (YTD). January 2015 took a break
from that trend, stay tuned..
Increased showings and sales, multiple offers on “well priced” listings, hesitant buyers become
onlookers…… Window of opportunity is quickly closing for first-time homebuyers (see
“CASH is King!” when making an offer. For several months approximately 42% of all sales
Well priced properties are attracting multiple offers making for a quick sale. Inventories in
Residential and Condo classes grow somewhat as Sale Prices increase. REO (Foreclosures) and
Short Sales are dwindling, with any “hidden inventory” (or overhang) backlog slowly trickling onto the market.
Mortgage Interest Rates are inching up slightly which may help motivate would-be
Buyers to go ahead and buy IF they can qualify. Savvy Investors are buying with Cash, giving
them a strong negotiating position, no financing/appraisal hassles and a quick closing. While
general U.S. economic news looks cautiously hopeful, current World and US events will have ripple effects on cost of living, consumer confidence, Financial and Real Estate Markets.
Rising Sales prices cause some “Owners” to become “Sellers,” putting their homes on the
FOR SELLERS: Sharpen your pencil, talk to your CPA and your Realtor® to explore the hidden benefits or consequences. Make no assumptions that will sting later.
To be successful, Sellers need to beat competing properties with better property condition,
REALISTIC pricing, good marketing, and flexible, creative terms. Days on Market figures show
that properties priced right will sell in a reasonable timeframe, often with multiple offers. “Priced Right” is still the determining factor.
BEST Deals are selling, while significantly over-priced listings remain un-sold.
Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to
encourage realistic offers from knowledgeable Buyers. This can prevent unanticipated escrow
fallout or Buyers whittling your price down during the transaction when previously unknown facts
come to light.
FOR BUYERS: Low interest rates prevail; however have started to nudge up and are predicted to rise in 2015. Buyers should get Pre-Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans).
“Short-sales” and foreclosures are still in the marketplace, yet they can be less of a bargain than they seem, requiring more hurdles to leap and more time (often 4-6-12 months) to close, if at all.
Be prepared, but BE REALISTIC. Lenders are more stringent on requirements now for loan
approval, compared to 2004-2008.
First-Time Home Buyers – Many programs are available…..
The low point in the market has passed, so check it out carefully NOW, don’t delay. The
opportunity is fading quickly. If you can’t buy now, start saving your down payment for the next
Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to
different conclusions that looking at the overall view.
Maui’s market place is much smaller than Oahu’s, and a few high or low sales have a greater effect on the statistical numbers without necessarily indicating a big market swing one way or another.