Welcome back to your monthly Maui Real Estate Report, where the landscape has mostly plateaued compared to both last month as well as year over year. Overall, Maui’s real estate market showed some more life, as total sales for single-family homes, condos, and vacant land jumped to 206 total transactions, up significantly from the recent lows of 125 total transactions last month. Despite increased sales activity, days on market continue to tick upward with properties selling in 109 days for single-family homes and 75 days for condos.
The recent uptick in sales activity is likely in part to mortgage interest rates dropping from 7% to just above 6% in January. With mortgage rate volatility expected to throughout the year, it is important to remember that monthly stats are a delayed indicator of past market conditions. (In fact, as of this writing [4/21/23] rates jumped back up for the first time in 5 weeks.)
March 2023 Maui Single Family Home Transactions
Demand for residential properties on Maui remains in today’s softer real estate market, thanks in part to the continued lack of available inventory for sale. As a result, 68% of properties sold for over $1 million, with nearly 1 in 5 selling for above asking price. Properties below $1 million sold 20 days faster than those above, indicating that while opportunities exist at entry-level price points, buyers need to be prepared to act quickly.
March 2023 Maui Condominium Transactions
Compared to March of last year, the median sales price for condos increased by double digits in every neighborhood except Kaanapali. Top performing neighborhoods were highlighted by Kapalua (+42%), Wailea (+50%), and Maalaea (+52%).
With lower price points than single-family homes and unwavering demand for vacation properties by mainland buyers, the condo market is expected to remain competitive. Those who have considered selling their condo in recent months may find the overall lack of inventory to be advantageous.
March 2023 Maui Luxury Transactions
The luxury sector bounced back in March compared to February, with nearly 50% more total units transacted. The South Maui neighborhoods of Wailea and Makena continue to lead the way both in terms of total sales and volume. Demand for high-end, vacation rentable condos remains sky high, in part because of rising hotel room rates. In fact, between 2019 and 2022, the average nightly rate rose an astonishing 50%!
With some of the nicer resorts on Maui charging upwards of $1,000 per night, many visitors are seeing great value by renting units in complexes such as Hoolei or the Wailea Beach Villas. Larger families or multiple couples can easily fit in these 3 bedroom units, and all stay under the same roof. As such, owners of these desirable condos are seeing bookings year-round, even with increased rates. Their bottom line has mostly increased, and many are seeing the Maui luxury condo market as one of the safest investment opportunities across the state.
Wrapping Up The Report
In conclusion, despite an increase in sales activity, Maui’s real estate market continues to experience an upward trend in days on market for both single-family homes and condos, with properties selling in 109 days and 75 days, respectively. However, total sales for single-family homes, condos, and vacant land have seen a significant jump to 206 transactions from the recent lows of 125 transactions last month. This recent uptick in sales activity is attributed, in part, to the drop in mortgage interest rates from 7% to just above 6% in January. It is important to keep in mind that monthly statistics are a delayed indicator of past market conditions, especially with mortgage rate volatility expected to continue throughout the year.
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.
Dano Sayles R(B)