Combined property sales across Maui County continued to decline last month, with only 145 transactions in all of November. We aren’t quite in that definitive buyers market yet, however, as we touched on last month in October’s report. In fact, even with slowing sales, the general lack of new inventory has helped maintain a couple aspects of a traditional sellers’ market…
Main point, there remains only 2.4 months of supply available; where as 3 to 6 months is considered a balanced market, 6 months or more a buyer’s market. This lack of new listings, both developer and resale, is perhaps the common thread for these past months reports. Additionally, mortgage interest rates declined for the third straight week, with data increasingly suggesting we may have passed the peak at 7%. Furthermore, property prices are back on the rise, and have increased 10% year-over-year. Which leads to another major talking point, especially with local first time home buyers: affordability.
Jeffrey Ventura, senior VP and residential real estate loans division manager at First Hawaiian Bank succinctly notes: “Affordability is an issue right now because of the high prices and high rates.”
November 2022 Maui Condo Transactions
Maui’s condo market remains as competitive as ever, literally, when it comes to the bottom line. The median sales price just reached a new all time high of $856,250. The increase in median sales prices is helped by the fact that there were only 70 total condo sales. 31 of those were over $1M. Looking at the luxury Makena and Wailea Condo market in particular, we see an island high median price of over $1.7M. Compared to a year ago, overall prices for condos have increased 14%, price per square foot is up 21%, and properties now take 2 weeks longer to sell.
November 2022 Maui Single-Family Home Transactions
Even though total sales have slowed, one in every four single family homes have sold for above asking price. On the other hand, 32% of properties sold in November had at least one price reduction. Obviously there’s multiple factors at play. Honestly, we are currently experiencing neither a definitive buyers nor sellers market.
As such, how a property is priced and presents matter. With the median sales price now above $930k in all key market areas, buyers will benefit from the increased Fannie and Freddie Mac conforming loan limits (CLL) for 2023. This is serious. The Federal Housing Finance Agency just announced a 12% increase at the end of November, and that $1.089M will be the new ceiling CLL.
November 2022 Maui Luxury Real Estate Report
The luxury sector was dominated by South Maui, and specifically the Makena and Wailea Condo market. Just look at these numbers! Out of all luxury transactions, both single-family homes and condominiums, Wailea and Makena Condos accounted for 35% of total sales and 47% of total volume. Furthermore, median days on market came in at 82 days, much quicker than near everywhere else on island. Adding in Kihei Condos to the total South Maui luxury market, and those sales/volume numbers rise to 55% and 57%, respectively. Communities such as Ho’olei, Wailea Point, and Grand Champions continue to be highly desirable and in demand.
Contact a Maui Real Estate Specialist
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Anthony Sayles R(S)