Market Update: Why Isn't Oceanfront Property Selling Faster on Maui's North Shore?
In my last blog, we discussed market activity on the North Shore specific to Sprecklesville and the Kuau marketplace. With 10 oceanfront properties currently on the market at an average of 220 days on market (DOM), something needs to give.
There are 2 reasons, and only 2 reasons, why any property does not sell, whether it is on the ocean, “upcountry,” or anywhere for that matter: price and marketing.
- Price – If the property is getting a lot of activity but no one is making an offer, then the public opinion is the property is over-priced.
- Marketing – If the property is getting little or no activity, then the property is not getting the proper exposure.
Along with price is price barriers; by that I mean at a certain dollar amount, Buyers sit back and go, “Wait a minute, that price barrier has never been achieved before for a property of this size or location etc.” At this very moment, there is nothing for sale in the North Shore market for less than $4 million! Buyers now have access to websites like Zillow, Trulia, etc. that provide a lot more information than they had in the past.
When you hit certain price barriers, one systematically eliminates Buyers who might have made a play on the property had it been listed below the perceived price barrier. Psychologically, $4 million seems like a lot more money than $3.9 million to the Buyer actively looking on the market.
So it will be interesting to see, with the increase in sales, if Buyers continue to the upward trend on the North Shore…stay tuned! If you would like more information on North Shore oceanfront real estate, please contact me.