MARKET UPDATE JANUARY 2015

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.

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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
below).

“CASH is King!” when making an offer. For several months approximately 42% of all sales
were CASH.
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
market.

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
market cycle.

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.

QUESTION OF THE DAY- TOPIC FSBO ( For Sale By Owner)

We are thinking about selling our home on our own. If a buyer comes in with a Realtor do we still have to pay their agent the 3% commission?

That depends on whether you choose to “cooperate” with agents or not. If you do not, agents will not bring buyers to your house. If you do cooperate, some agents will bring buyers, but if their client makes an offer and closes the deal, they will expect to earn a commission. A three percent commission is customary, but you can attempt to negotiate, too.

Before an agent brings a client to your house, they will probably stop by and ask you to sign a “one time show” agreement. This prevents you and the buyer from negotiating directly in an attempt to not pay the agent’s commission.

 

St. John’s Episcopal Church’s Annual Rummage & Bake Sale

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EVENT DETAILS

Date: Friday, February 6th, 2015 to Saturday, February 7th, 2015

Time: 9:00 am to 3:00 pm

Categories:

EVENT LOCATION

St. John’s Episcopal Church

8992 Kula Hwy

Kula, HI USA 96790

Island Area: Upcountry

EVENT CONTACT INFORMATION

Phone: 808-878-1485

Whats Happening at the MACC- MAUI REAL ESTATE | BLOG |

Lucky Plush Productions – “The Queue”

Friday, February 6, 7:30 PM

Castle Theater

Lucky Plush Productions - “The Queue”

Equal parts dance and theater, The Queue unfolds in a fictional airport where travelers stumble humorously, tragically, and awkwardly into the high stakes of each other’s private lives. Co-created by Lucky Plush Artistic Director Julia Rhoads and Leslie Buxbaum Danzig, The Queue features “clever choreography, danced with exquisite freedom and expression by the seven-member cast (that) flows out of everyday movement and early 20th-century forms.” (Chicago Tribune)
A live musician from the music group The Claudettes will perform with the dancers.

Remodel Before you Sell

Interior

Sprucing up your home before putting it on the market makes it more attractive to buyers, which can help you sell it faster and for more money. If you’re thinking of doing some painting or adding some color to your home, consider using Marsala.

As Pantone’s 2015 color of the year, Marsala will soon be showing up in homes and on runways. This reddish-brown tone gives any room an earthy look, but it’s important not to overdo it or you could end up turning off buyers. Here are some tips on how to use this color effectively in your home:

  • Use it as an accent wall. Many buyers prefer seeing neutral colors when it comes to walls, so painting every wall in a room with a non-neutral color won’t impress them. Instead, choose one wall as an accent wall and paint it with Marsala. Leave the rest of the walls in white or another neutral shade.
  • Pair it with warm hues. Since Marsala is an earthy tone, it works well when paired with other warm hues, such as brown or yellow. Again, though, make sure you don’t overdo things with too much color. For example, if Marsala is your accent wall color, include a few throw pillows in warm shades to enhance it.
  • Use just a hint of Marsala. If you don’t want to paint an entire wall with Pantone’s 2015 color of the year, you can still use this color in your home in smaller ways. Look for accent pieces that feature this color, or consider painting a small niche area or some cabinetry in your home with it. This will make the area seem warmer and more inviting without going overboard.

Need more help preparing your house for the market? Call Joseph Hogin,Broker with NextHome Pacific  808-870-2775

MAUI REAL ESTATE BLOG

Welcome to my real estate blog.

I am a licensed Real Estate Broker affiliated with NextHome Pacific Properties. here on the beautiful island of Maui

I update my blog with current information and/or sales activity at least once per month so be sure to come back & check out the site periodically.

 

For more information about NextHome ,Visit www.NextHome.com