Maui real estate market sees continued growth in third quarter
“A housing recovery is taking place but will be choppy at times, depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales, with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” said Lawrence Yum, National Association of Realtors (NAR) chief economist.
This describes the national market conditions but is easily seen in the current rise of real estate purchases on Maui.
When comparing the first, second and third quarters of 2010 with the same period of 2009, Maui condominium sales volume showed an increase of 49 percent, while residential property sales improved by 33 percent and vacant land sales volume grew by 32 percent. However, median sales prices for condominiums declined by 21 percent, residential properties by 8 percent and vacant land dropped by 19 percent.
West Maui sales volume also showed an increase over the first three quarters of 2009, with condominium sales up 82 percent, residential properties 55 percent and vacant land 48 percent. Again, this increase in volume has come at the expense of sales prices, as evidenced by the 14 percent decline in median sales price for condominiums, 16 percent for residential homes and 31 percent for vacant land.
Over the past three quarters of 2010, sales volume has increased, and median sales prices have declined. With phenomenal interest rates and affordable homes, this certainly describes a buyer’s market. However, there is some good news for the potential seller: the percentage drops in median sales prices are getting smaller. The increases are not large enough to see the gap closed by year end of 2010, but hopefully indicate homes regaining market value and a stabilization of the real estate market in Maui.
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