You’ve been doing your homework. You started on your Maui condo search and decided to narrow your focus on Kihei condos for sale. If you’re trying to figure out which condo is the right fit for you there’s one powerful piece of information to consider – turnover rate.
What is turnover rate?
Turnover rate is defined as the percentage of units in a condo complex that change owners each year. Let’s use a cruise ship metaphor: passengers may get on and off depending on whether they like the cruise, but there’s always a fixed number of rooms on the boat. The turnover rate is the percentage of “passengers” (owners) that are done with the cruise and are “abandoning ship” (selling their condo).
Should I care about turnover rate?
The short answer is an emphatic yes, but let me tell you why. Think of the turnover rate as a type of owner’s satisfaction score.
Low turnover rate = high vote of confidence from owners
Consistently high turnover = low owner satisfaction
To briefly return to the cruise ship metaphor: if passengers stay on the boat they must feel like it’s smooth sailing. But when lots of passengers want off the cruise, it might be a hint at trouble on the deck.
How will it affect my buying decision?
If you’re buying a condo in Kihei that you plan to live in, the turnover rate is especially important. When lots of new owners are constantly coming and going the community can feel like it’s in a continual state of flux.
If you are buying a Kihei vacation rental condo as an investment, the turnover rate can be a valuable insight as it hints at whether existing owners feel the condo is good for their long term business.
In both cases, knowing the specific turnover rate for a condo complex gives you a special edge in making your buying decision.
What is the current turnover rate for Kihei condos?
In 2015 there were a total of 571 condo units sold throughout Kihei, Wailea and Makena which represents a turnover rate of 5.92% (there are a total 9,642 units in South Maui). Looking a single year of turnover rate doesn’t really work as there are always cycles in the market that motivate turnover. I’ve dug deep into sales records for all Kihei condos to come up with the 5-year average turnover rate of 5.71%.
How do I find out the turnover rate for a specific complex?
You won’t find the condo-specific turnover rate on most websites – that data is not provided from the MLS and most agents don’t take the time to calculate it. As an expert in Kihei condos, I’ve done detailed analysis on 5 years worth of sales data to come up with the average turnover rate for 106 different condo complexes in Kihei. Before you buy a condo in Kihei, be sure to create your free Property Organizer account and then contact me to request this valuable info!