Welcome back to our monthly series of Maui Real Estate Reports, where we help you crunch the important numbers and better process the data and market trends. Let’s jump right to it! Maui’s overall real estate market held previous levels, as slower sales activity continued in February. While many speculate as to the direction of the housing market, one thing remains for certain – a lack of properties for sale continues to keep median prices elevated. Even if there is less buyer competition, especially at entry-level prices.
With mortgage interest rates forecasted to bounce between 6% – 7% in the foreseeable future, buyers and sellers find themselves at a stalemate as they balance housing affordability and the cost of switching properties.
February 2023 Maui Single Family Home Transactions
Across Maui, home sales are down 50% year over year as median sales prices remain just over $1 Million. In total, there were only 44 single-family home sales in February, the lowest since February 2009. But the comparisons stop there because this is definitively not a housing crash. This is a smaller correction that was bound to happen after a nearly unprecedented run of low mortgage rates and rising sales prices. In fact, prices are projected to remain steady for one simple reason.
Without a sudden influx of new properties for sale, median prices are likely to remain flat, especially as demand continues to outweigh supply; indicated by the three months of remaining inventory for sale [sellers’ market = 0-6 months] and the healthy pace in which properties sell. We’ve harped on this numerous times in our reports, but it’s the honest truth. There’s just not many new listings coming to market.
February 2023 Maui Condominium Transactions
Maui’s condo market set a record for median sales price last month reaching $908,000 beating out the high of $856,000 set last November. In total, nearly half of all condo sales were above $1 Million in February! While that record number is newsworthy, especially in today’s market, it is important to remember that with less sales activity, fluctuations in the data can be more dramatic. Still, we see vacation rentable units continue to fly off the market, as nightly rates have steeply climbed since the pandemic. There’s a steady flow of buyers seeking investment opportunities.
February 2023 Maui Luxury Transactions
Speaking of investment opportunities, the luxury condo sector that allows short term rentals continues to pace the luxury market as a whole. The South Maui neighborhoods of Wailea and Makena, along with West Maui communities Ka’anapli, Kapalua, and Lahaina continue to be the hottest spots for both total units sold and volume.
Still much like we mentioned in last month’s report, the luxury market is in a bit of an awkward spot. 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, it remains true that the desirability of our island resorts has never been stronger. And the supply remains at record lows. An interesting dynamic to say the least. But in the end, 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!
Contact a Maui Real Estate Specialist
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.
Aloha,
Dano Sayles R(B)
808-870-4899