Maui Real Estate - Statistics: April 2009

JUNE IS HERE! ALOHA SUMMER!
The full statistics for Maui Real Estate for the month of April are out.
IN A NUT SHELL...... the good, the bad….. AND THE CONTINUED UNCERTAINTY……
Inventory shrunk in all three classes during the last month. Similar to latest reports from many mainland markets, our market seems to be at or near the bottom. The large inventory includes many short sales and REO (bank owned) properties which will need to be absorbed as sales before we can move ahead.

FOR BUYERS: Continued low interest rates and first time homebuyer incentives provide plenty of options for Buyers who qualify. Maui home buyers should get Pre-Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans). More "short-sales" and foreclosures are happening in the marketplace, yet they can be less of a bargain than they seem, requiring more hurdles to leap and more time (often 4-6 months) to close, if at all. Be prepared, but BE REALISTIC. However, if you can purchase a home, it is a great time to buy and HOLD. Prices have declined considerably in the past 2-3 years; “Able” buyers are scouting out good deals and closing them. Buyers waiting for the "bottom" may also miss unique properties/opportunities as market forces, qualification requirements and mortgage rates fluctuate. (There is no bell that rings when the market hits bottom.)

FOR SELLERS: Sellers who don’t really need to sell (just “fishing?”) should stay off the market and clear the marketplace for those who REALLY have to sell. To be successful, Sellers need to be realistic and beat competing properties with better property condition, aggressive pricing, good marketing, and flexible, creative terms (including lease-with-option-to-buy and sale-with-lease-back to seller). Days on Market figures show that properties priced right will sell in a reasonable timeframe. “Priced Right” is still the determining factor. BEST Deals are selling, everything else is getting old. Pro-Active sellers are getting their properties appraised, inspected and surveyed in advance to encourage knowledgeable offers from realistic Buyers. Doing this can prevent unanticipated escrow fallout. Unrealistic sellers continue to follow the market down and miss current opportunities that later become woefully apparent. They may even end up in a Short Sale or Foreclosure situation that could have been avoided.

The irony of the market:
When it’s easy to qualify for a loan, more buyers can qualify, inventory is small and prices are higher. Conversely, when it’s harder to qualify for a loan, fewer buyers can qualify; at the same time inventory is larger (more choices) and prices are lower (better deals). This is today’s market.

Complete review of Maui Real Estate April 2009 Stats.