Over the last couple of days, I have been trying to steal a few moments to figure out the unofficial June 2009 Maui Real Estate Statistics. I have included the numbers I was able to find below. I am going to be a little more brief than usual on my commentary. I will have a few additional comments when I publish the official June stats as soon as they are published by the Realtors Association of Maui.

There were 61 homes sold county wide in June at a median price of $498,100. This compares to June 2008 numbers of 76 homes sold at a median of $606,000. That is a 20% drop in volume year to year.

There were 44 condos sold in Maui County last month at a median of $490,500. This compares to 56 condos at a median of $577,500 in June of 2008. This equates to a 21% drop in volume verses last year.

There were 7 parcels of land sold last month at a median of $512,000. There were 11 lots sold at a median of $700,000 last June. This is a 36% drop in volume.

Of the properties that were sold last month, there were 15 sales of bank owned properties and 7 short sales that closed. Twenty-three percent of all home sales were either short sales or bank owned properties. Eighteen percent of the condo sales were bank owned properties or short sales. There were no land short sales or bank owned property closes. These percentages are down a little from the previous few months. That being said, I don't believe the Maui Short Sale and Bank owned market is diminishing. The current inventory of listed properties continues to include a significant number of bank owned, short sale and distressed properties.

The most striking thing about this months real estate statistics is the difference in sales volume between June of 2008 and June of 2009. Earlier this year, we were seeing a year to year drop in sales volume that ranged between 40 and almost 70 percent for condos and homes. At first glance, the 20-21% drop that we saw when comparing June of 2009 and June of 2008 is a pretty significant improvement. Does this mean we are seeing a recovery in market conditions? June of 2009 was the best month for home sales this year. When you consider that the June 2008 home number included a number of long term new development closes, it makes the 2009 numbers look even better. That being said part of the reason that the numbers look better year to year is that the bar was lowering as the year progressed in 2008. Sales numbers started to go down as the year progressed in 2008 due to the worsening recession. This is particularly the case with condos. June of 2008 was by far the worst month of the first half of that year for condo sales. June of 2009 was pretty pedestrian compared to the other months of the first of 2009 for condo sales. Of course, it is important to remember that this is also just one month's data. One month does not make a trend. We will need to keep an eye for more sustained improvement over the next months.

While compiling statistics, I noticed this was arguably the best month for luxury sales this year. We had our highest sales price of the year at $11,250,000 for a luxury home on Keawakapu beach. We also saw 11 condo sales over $1,000,000. That was by far the most activity we have seen in the condo market over $1,000,000. That explains the big jump in median prices for June compared to the last couple of months. Overall prices continue to adjust downward, but the median increased $175,000 over last month. It makes sense when you consider that 25% of last month's condo transactions were priced over $1,000,000. While a positive sign for the luxury condo market, it bears repeating that one month's stats does not constitute a market trend.

As I mentioned above, I will have more commentary next week with the official statistics. In the interim, please feel free to contact us with any questions on the Maui Real Estate market.

We want to pass along greetings to our blog readers from the Great White North. We just got back from dinner with some Canadian friends to celebrate Canada Day. After a lot of Canadian buyer activity in 2007 and the first half of 2008, the last 12 months have seen fewer purchases by our friends to the north. The heightened activity corresponded with currency exchange rates for the Canadian dollar that were on par or better than the U.S. dollar. In addition to the global economic slump over the last twelve months, the Canadian dollar retreated in value to around .70 cents on the U.S. dollar. For Canadians that have been waiting for rates to improve, things are looking up as the rate today is just under $.86 on the U.S. dollar. If you are a Canadian or another International buyer interested in property in Maui, you might appreciate the International buyer's guide that we created. Of course you can also contact us directly with any questions.

Sunday's first annual Paia Fest proved to be a rousing success. The streets were full, there was lots of good music and donations were raised for many local non profits. I had the opportunity to enjoy some of the sights and sounds. I started with the music and fashion show next door to our office at the Paia General Store Shops.

Erin Smith and the Throwdowns put on a rocking show at Paia Fest.

Models showed off accessories from Indigo and swimsuits from Hana Highway Surf at a Paia Fest Fashion show.

photos by Daniel Sullivan

After the general store, I took in some surf tunes in front of the Green Banana. There was a large crowd grooving to the surf sounds of the sixties. After I had my fill of surf music, I made my way to the other side of town to Flatbread to listen to the Haiku Hillbillys. Good times were had by all around Paia town. A special thanks to Daniel Sullivan and the rest of the Paia Merchants Association for organizing a great first Paia Fest. I look forward to this event becoming a community tradition.

A few days back, I blogged on tomorrow's Paia Fest. This isn't the only great event planned for tomorrow. If you like Hawaiian music, the Maui Arts and Cultural Center is hosting the 18th annualKī Hō‘alu or Slack Key Guitar Festival. This free event is held on the lawn of the A&B amphitheater. The music runs from 2:00-7:00 and features some of Hawaii's best slack key musicians. Performers scheduled to perform include Kevin & Ikaika Brown, Makana, George Kahumoku, Jr., Dennis Kamakahi, Jeff Peterson, Ken Makuakane, LT Smooth, Donald Kaulia, Ocean Kaowili, David Kahiapo, Stephen Inglis, Paul Togioka, Pali and Bobby Moderow, Jr. In addition to the music, there will be lots of great food and other Hawaiian Cultural activities. Once again, this is a free event so bring your blankets, lawn chairs and sunscreen and enjoy the music. With Paia Fest running all day and well into the evening, there is an opportunity to attend both events.

The Hawaii Bureau of Conveyances is the state body that records all real estate transactions. Like many states, Hawaii is facing some budget challenges due to the current recession. Those budget issues are having an impact on staffing at the Bureau. As a result, the Bureau has some new rules that will go into effect as of July 1, 2009 that could potentially impact a real estate transaction. Here is a quick summary of the changes.

• No Specials: The Bureau of Conveyances will no longer allow specials regardless of the liability
  (dollar) amount. Specials are where title and escrow are able to submit documents to the bureau on the same day of recording instead of a day or more in advance as is the norm.
• No Pulls: The Bureau of Conveyances will no longer allow documents to be pulled once they have
  been submitted for recording.
• Projects or Bulk Recordings: No project/bulk recording will be allowed during the
  last five business days of each month.
• Recording Fee: The Regular System Recording fee will increase from $25/document to
  $30/document. Land Court document Recording fees are not affected.
• Good Funds: Documents will not be submitted unless escrow has good funds in hand
  two business days prior to recordation.

The new Good Funds rule is going to have the biggest impact on buyers and sellers. As it stands now, loans are taking longer. Buyer's and sellers are going to need to make sure they allow sufficient time to close to accommodate longer loan processing and more time at the bureau of conveyances. The no specials rule will also have an impact. Specials were helpful if there were any delays getting documentation from a lender and there was a threat that recording may have needed to be pushed back. While there were no guarantee on specials, that safety net is no longer available.

Over the last couple of years, the Paia Merchants association has sponsored a variety of new community events like Paia Gives, Final Fridays, and Paia Halloween. These evening parties featured extended merchant hours, music, art and non-profit fundraisers. All were a huge success. This Sunday the merchants are hosting their biggest community gathering to date. Paia Fest is an all day affair with events and activities starting at 8:00 AM and running well past dark. There will be merchant sales, music, fashion shows, fund raisers, art, movies, food and much, much more. Here is an almost complete schedule of all of the activities planned for Paia Fest.

Fundraisers

• 8-3: Yard Sale and Vendors at Maui Dharma Center, 81 Baldwin Ave. (579.8076)
• All Day: Mana Foods, 49 Baldwin Ave., is selling a healthy plate lunch, with the proceeds to benefit the Breast Cancer Fund. The menu includes Organic Hot Dogs from Applegate Farms, Rudi’s, Food Should Taste Goods, Steaz, Blue Sky, Boulder Chips, and Annie’s. All product has been generously donated by the manufacturers. (579.8078)
• All Day: Maui Food Bank Collection Bins at Indigo Paia, Maui Crafts Guild, Be Happy…, and Sand and Sea with each store offering a 5% discount with donation.
• 7-10pm: Mana’o Radio Fundraiser at Charley’s Featuring the Mana’o Radio Orchestra and Special Guests at 142 Hana Hwy.

Music

• 11-2 pm : Live Ukelele Brunch at Jacques Northshore Bistro, 120 Hana Hwy. (579.8844)
• 12-5 pm : Marty Dread, Teomon and BuBZ , and other special guests at Be Happy….Gifts, Books & Music at 71 Baldwin Ave. (579.9600)
• 12-5 pm : Erin Smith and the Throwdowns (1-2pm), Dr. Nat and Rio Ritmo, Anick Violette , and Karen B. at 149 Hana Highway (parking lot across from Charley’s) (579.9199)
• 4 pm: Band at Grass Landing on Paia Bay to celebrate end of Paddleboard Race. (579.6000)
• 5-8 pm: Hula Honeys perform at Jacques Northshore Bistro, 120 Hana Hwy. (579.8844)
• 6-8 pm: Sound Wave (surf music) outside of Green Banana, 137 Hana Hwy. (579.9130)
• 6-8 pm: Upcountry Celtics at Maui Crafts Guild, 69 Hana Hwy. (579.9697)
• 6:30-9:30 PM: Haiku Hillbillies at Flatbread, 89 Hana Hwy. (579.8989)
• 7-10 pm: Mana’o Radio Fundraiser at Charley’s featuring Mana’o Radio Orchestra and special guests. (579.9453)
• 7-10 pm: DJ at Paia Inn One Year Anniversary Celebration (579.6000)

Art

• All Day- (12-8) – Artist Demonstrations: Jennifer Throne, gourd artisan; Emi Azeka, hat designer and watercolorist; Susan Jenson, basketweaver; and Rafael Pereda, oil painter at Maui Hands, 84 Hana Hwy. (579.9245)
• 6-8pm-Brad Huck, mixed media artist, is doing a painting demonstration at Paia Contemporary Gallery, 83 Hana Hwy. (579.8444)
• All Day- Featured Artist Demonstration at By the Bay, along with refreshments and a special sale. 90 Hana Hwy. (579.9777)

Film

• All Day- “Message in the Water” Shown on rotation at Café Mambo, 30 Baldwin Ave. (579.6323)
• 2pm, 4pm, 6pm: Japanese Godzilla Movies, 3 showings of different movies at Equity One Real Estate, next to Bank of Hawaii at 39 Baldwin Ave. (579.9111)

Water Sports

• Sign up for Paddleboard Race starting at 3pm at Paia Inn*******(579.6000)

Sales/Specials

• 8-3: Yard Sale at Maui Dharma Center (579.8076)
• 12-10pm: Experience the art, science and splendor of pure aromatherapy and hand crafted bath, body, and spa products. Aromatic offerings to go…all day long at new store, Lunaroma Aromatic Apothecary, 42 Baldwin Ave. Above Café Des Amis (579-9714)
• All Day: Sidewalk Sale at Mandala (579.9555)
• All Day: Throughout the day, Mana Foods will offer samples of locally produced goods, hold a drawing for prizes and have lots of mini samples of natural products to give away. (579.8078)
• All Day: Sidewalk Sale at Sand and Sea (579.9377)
• 10-5: Hana Hwy Surf– 10-5 on Paia Fest Day. 25-75% off on name brands such as Volcom and Hurley. We are celebrating our ten year anniversary this month as well, with lots of specials and giveaways. (579.8999)
• All Day: Special Discounts given at Indigo, Sand and Sea, Maui Crafts Guild, and other stores with Maui Food Bank Donation.

Fashion Shows

• 5 pm: at 149 Hana Hwy “Carnivale” themed fashion show featuring bikinis from Hana Hwy Surf and jewelry and accessories from Indigo. (579.9199)
• 5pm: Paia Inn sponsors fashion show with looks from local boutiques (579.6000)

It looks like it will be another fun day in Paia town. I hope everyone has a chance to stop by Paia Fest, enjoys all the entertainment and supports local merchants and non-profits.