Maintaining recent local and national real estate trends, Maui’s market continues to find its balance. Most notably, the median sales price of single family homes slipped below the $1 million mark for the first time since October 2021. On the other hand, the condominium sector stayed hot, with a 27% increase in sales price compared to August of last year.
Short term rentable condos, also known as Maui vacation condos, are the main segment of the market driving the rise in condo sales price. I know investors who say they are seeking stable hard assets to diversify their portfolios to cushion the volatility in the the stock market and vacation condos seem to be their investment of choice.
Digesting the Data
While median sold price is usually the headline number (because that affects the bottom line for people in the market), there are a few other noteworthy numbers worth discussing from the table above. First, we’ll compare total sales (200) to new listings (220). This 20 unit difference is at near equilibrium, a positive indicator in most all marketplaces. Supply and demand are nearly pacing each other. Second, let’s focus on the list price received columns. Deals are still being closed at nearly 100% of the listing price, while a nice portion continue to close above. Properly priced properties are often seeing multiple competitive offers.
If you are seriously interested in selling your property, pay attention the the first part of that last sentence.
Advice for prospective sellers
In recent months, buyers have shown signs they are being more selective. Buyers are definitely feeling more empowered because they feel there’s less buyer competition, more available properties to view, and longer days on market. If you’re thinking about selling, you should price wisely while closely reviewing and comparing nearby sales activity to set realistic expectations. I’ve seen a few too many homes listed above fair market value, and that’s frustrating for everyone involved. If you need any further advice about this matter, please don’t hesitate to contact us directly, it would be our pleasure to assist.
Let’s get back to the report and some more location-specific information for single family home sales:
August 2022 Maui Single Family Home Transactions
Across Maui, there were 25% fewer single-family home sales in August compared to a year ago, with a noticeable slowdown in the activity of the luxury markets. Yet, a slowdown in transactions did not reflect a slowdown in prices. Our residential areas of Wailuku, Kahului, Lahaina, Pukalani and Kula show strength as median sales prices have continued to increase year over year.
While the number of new listings has not increased significantly, months of remaining inventory is trending upwards at 3.1 months. However, this is still well below what is considered a “balanced” market, which is 6 months of remaining inventory. The truth remains on Maui as it does most nationwide; for the better part of the last 14 years, new housing supply simply hasn’t met its demand.
This equation is most apparent in our luxury resort markets such as Kapalua, Wailea and Makena. Property values have continued to sky rocket, pacing the market in terms of sold price, increasing 110% and 57% year-over-year, respectively. This particular luxury sector is one we are proud to represent and a bedrock to the success of our team. Let’s dig into some more numbers for the past month:
August 2022 Maui Luxury Real Estate Transactions
We define the luxury market on Maui as single family home sales over $2.5 million and condo sales over $1.5 million. In the last month, we saw a total of 25 luxury transactions, which accounted for just over $100 million in total volume. As you might expect, our resort neighborhoods continue to lead the pack in most of these metrics, with Makena condos and Wailea condos at the forefront.
Units in this area are of particular note, as they are the only zip code to see an excess of listing price received (which in part tallied the highest median sales price). They also experienced a healthy 29% bid up, as well as the lowest amount of days on market. High-end demand for our South Maui resorts has arguably never been greater!
August 2022 Maui Condo Transactions
While total condo sales on island have been cooling throughout the first half of the year from the buying frenzy of 2021, transaction volume has noticeably retreated to pre-pandemic levels this past month. On the other side of the spectrum, median condo sales prices have continued their steep climb, with a 27% increase overall compared to last year. This price jump is led by the luxury and resort areas of Kapalua (up 67%), Wailea/Makena (106%), Napili, Kahana, and Honokowai (47%)
Again, the desirability of luxurious vacation rentals is on display here, as well as lack of supply. I’ll leave you on this quick note. Just last month, we had the lowest number of new condo listings in the last twenty years! Perhaps we haven’t seen the “top” of the condo market here on Maui just yet, at least in terms of sales price.
Beyond being a trusted advisor in the real estate market, your REALTOR should be a professional who recognizes their role in supporting your wealth building and wealth preservation. Helping to magnify wealth is one of the core values of The Sayles Team; a set of guiding principles for how we serve our clients at the highest level. As experts in the field, we are constantly learning and providing guidance about making the wisest choices for the future. If someone you care about needs guidance or recommendations, please share our contact information and we would be honored to help them! If you would like to receive our in-depth market update or would like an evaluation of your property’s value we would love to hear from you.
Anthony Sayles R(S)