Greetings and welcome to another edition of your insightful monthly Maui real estate update! Every month, we break down the most recent data and help decipher the most important numbers. There’s an easy highlight to this month’s update, as the January 2024 real estate market on Maui started with record-breaking momentum! Single-family homes (SFH) reached a new peak in median sales price—the current all time high over a roughly 30 day period is now officially $1,342,581.
Still, the basic supply and demand of our housing market might be even more interesting viewed through the following lens. I feel this new all-time high price is not the most noteworthy nugget from the January numbers at all. In fact, consider this…there’s been a sharp and significant rise (41%) in new single family home listings that have hit the MLS. And it has us all at the Sayles Team hoping for a more balanced market—one equally beneficial to buyers and sellers.
Conversely, Maui’s condo market is in an interesting position. Recent FEMA and government programs are encouraging special leasing terms for vacant units, designed to house those displaced by the Lahaina and Upcountry fires. In short, offer your property to wildfire survivors and you pay zero real property tax. They are promising a list of other securities to property owners as well (courtesy of the FEMA Fact Sheet):
- provide a security deposit
- write the contract
- allow you to require background checks from tenants
- conduct home inspections before move-in and after move-out
- honor your existing property policies (i.e., pets, occupancy, furnished/unfurnished, parking, etc.)
- pay all utility costs (including HOA fees)
- cover property damages
- ensure you maintain eviction rights, for cause, through the lease duration
- not jeopardize your ability to return to the short-term rental market at the conclusion of the contract (long-term leases do not change a property’s county zoning)
- assume responsibility for relocating tenants at the conclusion of the lease
These special circumstances are becoming increasingly appealing options for condo owners who were undecided about selling and would like to share some much appreciated goodwill back to our island.
January 2024 Maui Real Estate Report — Single Family Homes
In January, with only 55 total sales, Maui’s record median sales price was significantly impacted by the fact that 75% of properties sold for over $1,000,000. The recent surge in new listings calls for close monitoring of demand indicators, such as days on the market (DOM—currently 99 days) and the proportion of properties sold below the list price (53%)…both of which have been on the rise. It’s crucial to bear in mind that market statistics are lagging indicators, given the typical escrow period lasts either 30 or 45 days.
The crystal ball, as usual, remains cloudy. The Federal Reserve is officially holding off any rate cuts until their next meeting (which will take place March 19-20, 2024). Not to be anti-climatic, but it’s still too early to determine any larger market trends for the year ahead. Especially with any swings in those important interest numbers, currently unknown.
January 2024 Maui Real Estate Report—Condominiums
Condo prices in Maui have remained within a consistent range when comparing January 2024 to much of 2023. Since last summer, the inventory of available condos has increased, with the months of remaining inventory rising from 3 months to 5.1 months in January. This increase is a key marker concerning a shift from a seller’s market towards a more balanced market.
As we’ve discussed in this article before, the target is 6 months of remaining inventory for a real estate market to be near optimally balanced. It is worth noting that a market is considered a true buyer’s market when prices are more likely to decrease, DOM increase, and when inventory exceeds 6 months.
Final Thoughts on the January 2024 Maui Real Estate Report
As January 2024 wraps up, Maui’s real estate market shows signs of both excitement and informed caution. The surge in median sales prices for single-family homes, alongside an increase in listings, highlights a robust demand. For condos, the market remains steady yet faces potential volatility due to increased inventory and government housing programs. It’s crucial to watch how these factors, along with the Federal Reserve’s future decisions, will shape the market.
Entering the second month of 2024, Maui’s real estate scene is poised for a year that requires careful observation and strategic planning, with a keen eye on developing trends and market indicators. You can rely on our trusted team of professionals, having over 100 years of combined knowledge about the ever changing conditions in our local Maui real estate market. That experience and energy is more important now, than ever.
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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