Looking at this most recent year-over-year data, it’s clear the market has shifted. Most notably is the overall lack of new properties listed for sale island-wide, with only 80 single family homes and 66 condos listed in the last month. This overall scarcity may have lead to prices bouncing back up. The median sales price for a single-family homes have returned to just over $1 Million.
Even with low inventory, buyers continue to show restraint as days on market tick slightly higher, and total sales activity continues to trend downward. As a means to counteract higher mortgage interest rates, which have doubled in the past year, many are turning to adjustable rate mortgage (ARMs) loans. Additionally, seller financing is becoming increasingly more common.
Transactions have slowed down across pretty much every sector, including for the luxury market. Let’s crunch the numbers and do a deeper examination of the data:
September 2022 Maui Luxury Real Estate Roundup
There’s multiple data points to interpret from the chart above, but a few highlight the increasingly discerning buyers mentioned above. Out of the 21 total transactions, only 2 closed for over list price. Condos specifically saw even stronger negotiations, reflected by the 94% list price received. Days on market are also up across the board, with a vast majority of properties taking months to close.
Let’s dissect the single-family home market in general, with the neighborhood breakdown below:
September 2022 Maui Single-Family Home Roundup
Year over year, total sales for single family homes declined nearly 50%. Just 57 properties sold in September. Market areas with the biggest declines in activity include our residential neighborhoods of Wailuku, Haiku, Kihei, and Lahaina. Even with less inventory, homes are taking 11 days longer to sell compared to the same time last year. And as mentioned before, median sales prices hold steady, reclaiming the $1 Million mark island-wide.
As always, a deep dive into the condos market is in order. The chart below highlights a similar theme:
September 2022 Maui Condominium Roundup
Much like single family homes, condo sales declined 46% year-over-year, especially in the luxury areas of Wailea, Kaanapali, and Kapalua. On the other hand, the median sales price is once again trending upwards, increasing by 10% to $800,000. Still, comparable to the single family home market, this feels like an overall price plateau. About 1 in 5 condos were sold above asking price, compared to nearly 1 in 3 last year. There’s a discrepancy between buyer and seller price point that’s starting to become more apparent each passing day.
Final Thoughts About the Shifting Market
The scarcity of new listings hitting the market has caused trickle down effects for the entire housing situation. Seems like I’ve been grinding that point into the ground as of late. Constant repetition, however, doesn’t necessarily make it any less true. With that in mind, I highly recommend you check out one of our recent articles about a new development, Hokuula in Haliimaile. These brand new developer listings are rare on Maui, to say the least, and located within a short distance of all the best that Upcountry has to offer.
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Anthony Sayles R(S)