Following pace with the country at large, Maui’s real estate market got off to a relatively slow start in 2023. And forecasts for the future remain cloudy at best. Total sales were down 32% for single family homes–and 65% for condos–compared to January last year. Yet, if you’ve been following this report, these numbers specifically seem to speak mostly about one key housing factor on our island, lack of inventory. In fact, one of the biggest dividers of the reduced sales activity was a 40% decrease in new listings. That’s a huge percentage no matter which way you cut it. Simply put, there’s very little available on island at this moment. When we combine all property types together, Maui has just 2.8 months supply of inventory for sale.
While the chart above indicates that demand has indeed softened, it remains a seller’s market. In addition to lack of inventory, we saw every 1 in 5 properties sell for above asking price, and average days on market has leveled off just above recent lows. To further muddy the waters, interest rates are expected to hold steady around 6%, and many experts anticipate that sales activity will see a sluggish pace in the early part of 2023.
January 2023 Maui Single Family Home Transactions
Median sales prices increased just 1% for single family homes in January compared to previous year, as prices have leveled off in recent months. This brings up a major point we discuss with all our listing clients. The importance of pricing has never been greater! You can see as the numbers illuminate this fact: in the last month, 25% of homes sold had a price reduction. That’s a staggering number, especially compared to the past couple years when over-asking was the norm. We are in a fluctuating market, but one thing remains consistent, competitively priced listings continue to be especially attractive.
On average, homes that had a price reduction sold in 210 days compared to just 87 days on market for homes that sold at or above asking price. As with any shifting real estate market, understanding the nuances specific to each neighborhood is critical whether you are a buyer, seller, or investor. The Sayles Team represents over 100 years of combined experience. Succeeding in every market along the way.
January 2023 Maui Condominium Transactions
As we mentioned at the start of this article, if you’ve been keeping close track, one of the strongest areas in the housing market in recent months has been the condo market. Well, even this sector finally showed signs of exhaustion, as there were only 54 total sales, matching the low of May 2020. As we all remember, this is when the pandemic first really started grabbing hold of the real estate market.
But let’s fast-forward to present. Even though condo median prices fell 9% year over year, and nearly 200k from the highs of Nov 22, 2022 ($856K), there is no immediate cause for concern. Both sales and inventory levels remain low. This is especially true in the luxury markets where Kaanapali, Kapalua, Makena and Wailea condos all recorder higher sales that helped buoyed the overall report.
January 2023 Maui Luxury Transactions
The luxury market really seemed to shift the most with only 19 total transactions notched for the month of January. The disconnect between buyers and sellers is seemingly more present than ever, especially in this sector. Inventory is near all time lows. Qualified buyers know their worth. The tug and pull is warranted, if not frustrating, for all parties involved. Maui continues to be one of the most desirable destinations on the planet. There are ‘golden handcuff’ situations abound with sub 3 percent mortgages. While there’s a whiff of a stalemate, let’s look at the numbers with more scruntity:
Examining the numbers more in depth, and we see that South Maui again leads the pack in terms of total sales and volume. Combining single family homes in Kihei and Maui Meadows with Makena and Wailea Condos and we see 53% of total sales and 63% of total volume. The desirability of our island resorts has never been stronger, while the supply remains at record lows. An interesting dynamic to say the least. And that’s why we are here to help you along your real estate journey. Whether first time buyer, or experienced investor, we urge you to connect with our experienced team.
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.
Dano Sayles R(B)