Neighbor islands show inventory up

 

Part 1 of 2 series

 

HONOLULU ADVERTISER November 13, 2005

BY LISA SCONTRAS

Custom Publishing Group

 

Signs indicate that the market imbalance between supply and demand — sellers and buyers — may begin to equalize in the months ahead.

 

“On Maui, just in the last couple of weeks, the market is starting to change,” says Michael Healey, broker/partner of Prudential Locations on Maui. “Inventory is up. Way up in some cases.”

 

Healey says that in one development last month there were four listings, now there are 22 and adds that this is good news for buyers.

 

“Certainly if you’ve got 22 homes to pick from, it’s logical to think that you may be able to negotiate a better price,” explains Healey.

 

On the Big Island, the market peaked in March, April and May. Robert Williams, president and principal broker at Prudential Orchid Isle Properties, corroberates the notion of a Neighbor Island slowdown and says that since then, sellers have started adjusting their prices.

 

“Prices kept going higher and higher until they reached a level that could not be sustained,” Williams says. “According to the MLS, which tracks price changes, approximately 75 to 80 percent have lowered their prices recently.”   Williams explains that while there is a definite shift, the market is still quite healthy and this is all part of the normal cycle.

Rising inventory on the Neighbor Islands will likely lead to more competition among sellers, ultimately making it easier for buyers to negotiate a better price.

 

Market analyst Ricky Cassidy says that every year around Thanksgiving and Christmas inventory goes up a bit.

 

“Buying real estate isn’t really at the top of the list right now for most local people,” says Cassidy. “So there should be more inventory — more than any other time of the year.”

 

Cassidy points out that high prices encourage sellers and discourage buyers. So an increase in inventory and decrease in buyers will tend to stabilize prices.

 

“We’ve all been anticipating it,” says Healey. “So far, the slowdown hasn’t really affected the high-end properties — which is usually the price category that slows down first. Our higher-end is still kind of hot.”

 

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