According to the latest report from the Realtors Association of Maui (RAM), Maui County had double-digit gains in the median price of single-family homes in the month of November. At the same time, sales of homes and condos were lower than the same month last year.
The median home price was up by 12 percent to $522,500 compared with $465,000 in November of last year. Yet there were 74 sales, which is 15 percent lower than the 85 of November 2012.
Median condo prices fell to $350,000, a 14 percent drop from the $400,000 of November 2012. There were 96 sales, which is 4 percent lower, compared to 100.
Why the higher home prices despite the slowing of sales? Low inventory. Of course sales are going to slow down when availability is low. After the recession, those bank-owned, foreclosure and short sale properties were snapped up pretty quickly, and the number of new ones being added to the market shrank tremendously. According to the report however, inventory has begun increasing a bit because of the climbing prices, so it looks like these factors are going to be balancing out.
At this point, if you are still driven to find your Maui dream home, there are some wonderful choices out there, provided you can make a fair offer. As always, we recommend that you get pre-approved for a loan so you know exactly how much home you can afford before you start shopping around. If a home purchase isn’t right for you, remember that condo prices are down, and such an investment may be better suited to your needs.
If you need assistance with your West Maui home search, you’ll find our contact information at the bottom of the page. Mahalo!