I came upon two interesting numbers today that I thought were worth sharing. Each number provides an interesting snapshot of the Maui Real Estate market.
The fist number is 400. The number of properties reported to be under contract in the county of Maui broke the 400 barrier for the first time since spring of 2008. The number of properties fell steadily through the summer and fall of 2008 before bottoming out in the mid 200s. This winter, we started to see a slow but steady rise in the number of properties under contract. More recently, we have seen a September surge that finally pushed us back up to 400 properties under contract. I suspect that the surge can be attributed to a couple of factors. There is just a little over two months left to take advantage of the first time home buyers tax credit. Some buyers are scrambling to put things under contract to meet this window. That being said, it isn’t all first time home buyers. A number of higher end properties went under contract today at Hokulani Golf Villas. We are also seeing a little more activity in the vacation rental market as buyers are gaining more confidence in the economy, they seem more comfortable making a decision to purchase a second home. Last but not least, we are seeing some pretty good opportunities out on the market that are priced well below peak market and even recent comps.
That brings me to my second number. Our office listed a bank owned property in Kula thirteen days ago. As of this afternoon, 17 offers have been submitted on the property. This is the most extreme example of competitive bidding I have seen in the current market. Even in the height of the peak market, you did not see properties generating this type of frenzy. The reason for the flurry of activity is that the house is priced at least 20% below even the most recent sales. While it is rare to see this type of deal on the market, we appear to be seeing a shift in bank pricing strategy. Most bank owned properties in Maui have been priced closer to recent comparable sales. Some banks are starting to take a more aggressive stance towards pricing so they can move out inventory at a faster pace. This means more opportunity for buyers. If you are interested in bank owned opportunities, you can check out our new Maui foreclosures page on MauiRealEstate.com. It features all of the current Realtor listed bank owned properties on the Maui MLS. It is continuously updated as new properties come on the market. You can also contact us directly for more immediate assistance.
