Maui Million Dollar Home Sales ($1.0M+) – Day 9 of 10 – “How Long Did They Take To Sell?” (Days On Market)

From January 1, 2012 through September 16, 2013, a total of 231 “million dollar plus” homes sold in Maui County, generating total volume in excess of $525 million.  There are many ways that Hawaii real estate appraisers analyze sales statistics for luxury homes.  Because a proper market study for this segment would run many pages, I am posting one article per day for ten days.

Day 9 of 10 – Maui Million Dollar ($1.0M+) Single Family Homes By Days On Market (DOM)

Consider the following graph and chart, which categorize Maui million dollar home sales by the amount of time they were on the market before being sold (converted to months):

Maui Million Dollar Home Sales By Days On Market (converted to months)

Maui Million Dollar Home Sales By Days On Market (converted to months)

Maui Million Dollar Single Family Homes By Days on Market
Sold From 1/1/2012 through 9/16/2013
Days On Market # of Sales % of Total
0-6 Months 114 49.4%
6-12 Months 74 32.0%
12-18 Months 23 10.0%
18-24 Months 5 2.2%
24-36 Months 3 1.3%
36-42 Months 7 3.0%
42-48 Months 1 0.4%
48-54 Months 3 1.3%
54-60 Months 1 0.4%
Total 231 100.0%

I was a little surprised by the results of this analysis.  My experience with the high end residential market is that marketing times of over one year are not uncommon (and at 18.6 percent, its not exactly unheard of, but certainly not the norm).  I suspect two elements are at play: (1) the “under 3.0 million” market is probably responsible for the majority of quick sales, and (2) the Maui luxury market has been heating up, especially since January 1, 2013–fueling absorption.

Bottom Line: Price your Maui million dollar+ home right, and it should sell in under a year.

Questions or comments?  Please leave them in the comment  box below, I would be happy to clarify and/or expand.

Aloha, Chris

Bonus: Marketing Time

marketing time
An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal.

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).