How are the Maui fires affecting the island’s real estate market?
Welcome back to your monthly report where we’ll be analyzing the numbers and underlying factors for the September 2023 Maui real estate market. First and foremost, it is seeking relief in the face of several challenges. An already tight housing situation is being exacerbated by the fallout from the Lahaina fires. There’s also mounting pressure from rising interest rates and a significant decrease in visitors on the island. In addition, our island seasonality further intensifies these pressures on the market as a whole.
As we mentioned in last month’s August Maui real estate report, September and October have historically been our slowest months. If you’re considering buying or selling, it’s important to work with a real estate group like The Sayles Team. Whether it be Wailea condos or Wailuku homes, our shared knowledge and combined experience can help you understand the nuances of specific neighborhoods and Maui condominium complexes.
Another Record Setting Month
One of the obvious standouts in this month’s report is median sales price. In September 2023, the median sales price for single family homes reached a new all-time peak of $1.3 million. This is now the high water mark, surpassing the then record of $1,271,000 in May. In fact, essentially all primary market areas reported a median sales price above $1 million.
Homes in Kihei ($1.34M; 34% increase over last year), Haiku ($1.5M; +42%), Kahului ($1.27M; +30%), and Wailuku ($1.12M; +20%) accounted for 2/3 of all sales on Maui. With only 84 listings in the last month, the market continues to be in favor of sellers. Furthermore, our continued lack of inventory (and not nearly enough projects in sight), trends are likely to continue.
September 2023 Maui Condominium Report
Demand for condos appears to be waning. Both total sales and median sales price have declined since their near record setting peak in April. As days on the market lengthen–along with a weakened demand for short term vacation rentals–the condo market is encountering some challenges we haven’t seen too recently. Mortgage rates accentuate these difficulties, but we have a feeling there will be a bounce bank during the winter season. This early autumn seasonality cannot be discounted. This sector of the market tends to perform best the more visitors on island.
September 2023 Luxury Maui Real Estate Report
Besides the overall low sales (especially for luxury condominiums), this sector had two noteworthy numbers in my opinion. First, was median days on market. 82% of single family home sales were for properties that had sat for many months. Furthermore, the same percentage had reductions and/or sold under listing price. The demand for luxury homes simply isn’t as robust, especially compared that range we mentioned above, $1-1.5 million.
The luxury condo market was mostly stagnant, besides 5 sales in South Maui. This makes perfect sense when you consider recent context and the need for temporary housing for those displaced by the Lahaina fires. Many graciously opened their second homes to those in need. Also note that the Mayor has made it clear, most every West Maui condo resort will be closed until at least October 8th; and still then, it will just be a tentative phased reopening from Kapalua to Napili and Kahana. Everything south of Kahana Villa–Honokowai to Ka’anapali–will remain closed indefinitely, following assessment of Phase 1.
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)