Maui Real Estate Absorption Rate Continues in Positive Direction

Photo Credit: Purpleslog

The absorption rate for Maui Real Estate has continued moving in a positive direction during the past 12 months.

Absorption rate is a simple tool you can use to measure supply and demand. Realtor.com explains it as: “The absorption rate provides the answer to this question: How many months it would take to sell all the homes for sale in my area at the current rate they are selling? The higher the number, the more aggressive home sellers will have to be to get their home noticed and sold.”

So let’s take a look at absorption rates of Maui Real Estate over the past 12 months. We got our numbers from The Realtor’s Association of Maui. Each month’s absorption rate is based upon that month’s active inventory divided by that month’s sales.

March 2011: Residential = 10.9 months, Condo = 10.5 months, Land = 50.4 months February 2011: Residential = 16.9 months, Condo = 14 months, Land = 79.6 months January 2011: Residential = 17.6 months, Condo = 15.9 months, Land = 62.9 months December 2010: Residential = 13.6 months, Condo = 15 months, Land = 40.6 months November 2010: Residential = 16.8 months, Condo = 20.8 months, Land = 100.2 months October 2010: Residential = 16.3 months, Condo = 19 months, Land = 119.2 months September 2010: Residential = 15.8 months, Condo = 14.5 months, Land = 100 months August 2010: Residential = 14.6 months, Condo = 18 months, Land = 88.6 months. July 2010: Residential = 16.3 months, Condo = 21.8 months, Land = 43.1 months June 2010: Residential = 13 months, Condo = 13.4 months, Land = 66.7 months May 2010: Residential = 12.4 months, Condo = 13.6 months, Land = 36.9 months April 2010: Residential = 11.8 months, Condo = 9.2 months, Land = 38.6 months March 2010: Residential = 15.1 months, Condo = 12.2 months, Land = 48.8 months

Do you see any trends in the above numbers? Does it give you faith in Maui Real Estate? Or does it make you want to sit on the fence (if you’re a buyer or seller)?

Soon we’ll organize absorption rates in a table representing a longer time line, i.e. the past 20 years in Maui Real Estate. One thing’s for certain, studying absorption rates, historical price movements, and other trends in real estate is a great way to make educated decisions.

What did you think of this post? What would you like to see us write more about in the future?

Thank you for reading. Have a great Thursday!

Aloha,

Josh Tremblay R(S)