Welcome back to the latest installment of your monthly market update! The October 2023 Maui real estate market extended its (relatively) slow streak. Just 48 single-family home sales and 61 condo sales recorded last month. Median sales prices have remained within recent ranges in part due to a limited supply of inventory island-wide.
Given the absence of new listings, both buyers and sellers can expect a tighter real estate market through the fourth quarter of this year and into early next. A decrease in mortgage interest rates will surely only increase prices and competition, given the existing pent-up demand. But the Fed stepping in and lowering rates certainly is not a sure thing. In fact, most economic experts are mixed in their predictions for the following months.
October 2023 Maui Real Estate Report — Single Family Homes
Compared to October 2022, the median sales price for single-family homes increased by 27%, reaching $1,269,025. Demand across all parts of Maui remains strong. One in every four homes sold above the asking price, with a combined median of just 89 days on the market. With over 2,200 structures destroyed in the Lahaina and Upcountry fires, the majority of which were residential, Maui’s real estate market will face increased pressure for the foreseeable future. This, of course, further intensifies the rising concerns about housing affordability.
October 2023 Maui Real Estate Report — Condominiums
Maui’s condo market is exhibiting somewhat mixed trends. Total sales have declined by 25% compared to the same period last year. This drop would have been even more pronounced if not for the recent sale of nine new units at La’i Loa in Wailea, some of the most desirable vacation rental condos in South Maui. As we move forward, we can expect more of these project sales to be recorded, which would skew the monthly reporting metric for the resale market. Excluding the sales at this development, the median price for condos on Maui dipped slightly to $747,500.
October 2023 Maui Luxury Real Estate Report
It certainly seems that sales of luxury single family homes have stagnated recently. Compared to October 2022, total sales were down nearly 40% and total volume down over 50%. Looking at this month’s numbers, you can see just one of the properties sold without a price reduction. Further yet, most of the sales were properties that sat on the market for many months. The median days on market was actually 140, just shy of 5 months.
As we mentioned above, the luxury condo sector was largely buoyed by recent sales of new units at La’i Loa. However, when we take out the 9 sales and over $23 million in total volume, the numbers almost exactly mirror the luxury condo data from a year ago (10 sales for $20 million total). There are still 66 (62 of which are categorized in this luxury sector) pending sales in La’i Loa , for a total just shy of $160 million, which will undoubtedly alter the metrics moving forward.
Contact a Maui Real Estate Specialist
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Aloha,
Dano Sayles R(B)
808-870-4899