Gary's Blog

Tuesday, October 8, 2013

Maui Real Estate Still Going Strong

Hawaii BKs hit lowest level in 5 years
The number of Hawaii residents and businesses filing for bankruptcy fell in September to the lowest level in more than five years.

The Honolulu Star-Advertiser reported 153 bankruptcies were file in September, down more than 4% from the same month a year ago, and the smallest number since February 2008, when there were 141.

Bankruptcy filings in Hawaii have been on a downward trend since 2010, as the job market has improved and consumer debt loads have declined.

Nationwide statistics are equally exciting.  Lenders initiated foreclosure action in August against the fewest U.S. homes for any month in nearly eight years.   August's 55,775 homes entering the foreclosure process was a decline of 8% from July, and down 44% from August last year, according to Realty-Trac Inc.. 


Visitor Arrivals and Expenditures Continue to Grow 

Maui logged growth in arrivals and visitor expenditures 2.8% for August as the slower "fall shoulder season" arrives for the industry.  

Maui's room rate hit a new high this summer, at $304.02 in July, while occupancy in Wailea had a strong month with occupancy at 78.2%, and revenue per available room up 12% to $379.59. 

Home Sales Jump

Sales of new homes increased 7.9% in August, after a drop in July of 14.1%.  This could ease worries that higher mortgage rates have started to dampen sales.

Prices for single-family homes and condos in Maui County showed strong growth in August, with median prices at $585,000 and $420,000 respectively, the Realtors Association of Maui reported.

Although condo sales for the month fell 15 units compared to August 2012, the median sales price rose 23%.  The median price was also up 14% from July's $370,000.

Residential sales were up only two units to 79, but the median price rose 15% from August last year.  Month over month, the median price was up 23% from $475,000 in July.

The August monthly data indicate that the market is taking a "seasonal breather" after the winter-to-spring rush.  Inventories have declined 12-17% in the past year.

Foreclosures and short sales have declined as well.  One month ago, 26% of residential sales and 11% of condo sales were foreclosures or short sales.  In August of 2012, those figures were 39.7% for residential sales and 28.4% for condo sales.

These numbers vary from region to region.  For example, Kihei logged the most condo sales in Maui, nearly doubling the sales of the next highest region (Napili/Kahana/Honokowai), in the first eight months of this year.   

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