The statistics for Maui real estate sales for May are out. Good news, home sales rose from 46 in April to 56 closings in May. Condo sales rose from 29 in April to 47, while land sales fell from 11 to 8. Once again, Central Maui has held the lead on home sales activity, generated by short sale, bank-owned and developer inventory. Land sales continue to be sluggish. This may be due to several factors: The difficulty of obtaining land and construction loans today with financial institutions requiring 35% down. Secondly, the attractive pricing of finished homes on the market has taken the focus away from construction. Third, given lack of disposable income, the market is currently not focused on land as an investment unless it is an exceptional value or rare parcel. It does appear that many land owners are finally coming around to the reality of the market, as a number number of land listings have shown significant and attractive price reductions over the past two months. For the full report, see Maui Real Estate Statistics - May 2009
No comments:
Post a Comment