West Maui’s entry level residential home values strengthening
WEST MAUI – Over the past 14 months, West Maui’s entry level home availability has changed drastically. Graduation is upon us again, and we all look forward to our graduates moving up and out and becoming successful, productive members of our community. But their options for entry level homes have decreased substantially in recent years.
There are currently only four homes on the market with asking prices of under $600,000. Of these, two are bank owned foreclosure properties (REOs) and two normal sales. At the same time, there are 12 homes under contract in escrow. Of these, five are short sales pending seller’s lenders’ approval and one is a REO. That leaves us with 50 percent of the homes currently under contract as “normal” sales.
When we look at a snapshot of the current market, we have had two sales of homes under $600,000 in the past month. This indicates that based on our current inventory, we have two months of inventory on the market. This is the lowest number in three years and 50 percent of the sales we had during the same period last year.
What does this mean to you? If you are a buyer looking to invest in an entry level home, you need to be aggressive and work hard not to miss any opportunity. If you are a seller, you can be assured that your values are strong and potentially poised for an increase.
With interest rates low and our local visitor economy strong, now does seem to be a very good time to investigate potential home ownership. Always check with your favorite realtor to be kept fully informed on the current market and inventory, and remember that in a tight market, the aggressive buyer normally will be the successful bidder.
If you are looking for the best value on West Maui, a current analysis of the value of your home or a surf report, give me a call – I am your West Maui guy!