Maui home sales trend downward

Most January numbers for Maui's real estate sector continued to trend downward, while inventory rose and short sales have begun appearing on the market, according to a report issued over the weekend by the Realtors Association of Maui.

Last month, 56 single-family homes changed hands in Maui, a 47 percent drop from the prior year. Single-family home prices fared better, dropping only 5 percent to $574,113 from the year ago $602,000.

There were 89 condominium sales last month, a 10.1 percent drop from the same month in 2007. However, the median price paid for a condominium rose 1.7 percent to $610,000 from $600,000 in January of 2007.

The January numbers show a generally downward tick, yet only time will tell if it bounces right back or not, said Terry Tolman, chief staff executive for the Realtors Association of Maui.

"Since the market peaked in Summer '05, the monthly numbers have bounced up, down and sideways with a general cooling trend," Tolman said.

Short sales, a sign of market slowdowns, have also started appearing in the Valley Isle, Tolman said. A short sale occurs when a seller asks the lender to allow them to sell their property for less than the note.

Tolman said that Maui's market has been negatively impacted as some Mainland markets have suffered. A buildup of inventory could be a sign of market slowdown in Maui or related to what Tolman called, "new decisions for the New Year."

A total of 1,155 single family homes and 1,502 condominiums were listed last month. Single family homes hit their highest inventory level since last April while condominiums were at their highest level since July.

Maui prices

Median sales prices:

Single-Family Homes

January 2008	$574,113
January 2007	$602,000
Change	-5.0%

Condominiums

January 2008	$610,000
January 2007	$600,000
Change	+2.0%

Source: Realtors Association of Maui