Recent information from the REALTORS Association of Maui for May show a changing real estate market indicated by fewer transactions being done across the island. This is especially true for the resort areas of West Maui and South Maui. We have felt the pace of our business slow down tremendously over the past several weeks. Prior to Covid, May and June would be traditionally slower months for sales before we typically ramp up again in July and August.
That being said, average home prices are still above last year’s averages on the North Shore, Central Maui, and Upcountry Maui. Last month, more than 60% of all residential and condo sales were closing at or above list prices on the island; however, the majority of the properties that closed last month were from purchase contracts that were initiated in March and April.
Many sellers on Maui have been lowering their list prices in June. This is particularly true for single family homes in the $1M-$1.5M range where rising mortgage interest have negatively affected potential buyers’ bowering power. It’s pretty amazing to see how quickly markets can change. There’s certainly been a lot of negativity in the news the past couple of weeks.
The luxury condominium market on Maui still seems to favor to sellers given the scarce inventory. Condo listing prices are holding relatively firm, however prices seem to be plateauing rather quickly. Many buyers we have been working with are becoming more and more discerning, and are waiting on the sidelines to see where interest rates go.
So the inventory of homes for sale is steadily growing, mortgage rates keep on rising, there are many price reductions happening, mortgage applications are down, and fewer people are shopping for homes.
What does this mean for the Maui market? It’s hard to say at this point, but the market is definitely shifting. How much it actually shifts, that’s the multi million dollar question. If you have questions about buying or selling in today’s market, please reach out to the Sayles Team. We have a wealth of local knowledge and over 150 years of collective experience in the business.
If you’re interested in learning more about our private collection of listings, please contact our team for more information. We specialize in the most exclusive Maui Real Estate. Our team of exceptional agents are ready to find you your perfect Maui lifestyle property. We respect your privacy and look forward to connecting with you soon. Mahalo!
Anthony Sayles R(S)