Maui real estate inventory shrinking
The number of homes, condos and land listed for purchase has fallen significantly from the past two years, in turn stabilizing values and homeowners’ equity positions and reducing total sales.
Though many buyers who assume they are still in a buyer’s market find it hard to believe, one of the sobering fundamentals shaping real estate this year is shrinking inventory. The supply of houses, condos and land for sale has fallen significantly in most areas compared with a year or two years earlier.
Over the past year, according to the most current Maui Board of Realtors statistics, 899 homes have been sold in the past 12 months, with 39 percent of these sales being “distressed” – either a short sale or bank owned property. The current absorption rate based on September’s active inventory divided by August sales is: Residential = 8.8 months, Condo = 9.4 months and Land = 33 months of active inventory.
On a national level, eight of the top ten markets with biggest inventory declines are in California, based on Realtor.com’s August 2012 Real Estate Trend Data Report.
The number of homes for sale nationwide fell 18.68 percent from a year ago in August to 1.84 million, continuing a trend that’s manifested itself every month so far this year, both locally and nationally.
Last week, Federal Reserve Chairman Ben Bernanke rolled out QE3. What does this mean to the real estate industry? QE3 is the commitment by the FED to purchase $40 billion per month of MBS (mortgage-backed securities), which should help to keep mortgage interest rates low.
Although the inventory is vanishing, there are still some good buys out there for the prepared buyer working with a full-time, proactive real estate broker. If you have any questions or need specific, detailed reports generated for you for any neighborhood, area or condo building on Maui, just call me direct at (808) 357-4782 or e-mail me at Greg@MauiRealEstateLLC.com.