Mortgage rates, which had been enjoying a historic low for much of the past year-plus, are definitely on the way up.
The average 30-year, fixed mortgage rate went over 5% in April, reaching the highest levels since 2009-2011, according to Freddie Mac. Seeing as how both Maui and the nation are also simultaneously grappling with the ongoing ramifications of the pandemic, rising inflation, supply-chain issues, and a lack of available housing units on the market, it would seem like a sure bet that the long-awaited housing slowdown would likely be upon us in Maui Nui.
And you’d be wrong! According to statistics freshly released by the REALTORS® Association of Maui, the Valley Isle set yet another new record high median sales price for single-family homes this past month, coming in at $1.24 million—an increase of over five percent from last month’s then-record high. Over 24% higher than April of 2021, the April 2022 median price is the third such all-time high in the past four months alone, leaving many to wonder just how much higher prices will go during the remainder of the year.
Meanwhile, condominium sales didn’t do too badly last month either, checking in with a median sales price of $815,000—just shy of last month’s all-time record at $820k—and an 18.1% increase from April of 2021. 176 total units changed hands, with all sold properties receiving their listed asking price.
According to the latest report, “Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Inventory remains low, with only 2 months’ supply at present, and home prices continue to rise, with the median existing home at $373,500 nationwide, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets”—including Maui, of course!
Getting inside the numbers
While it’s true that the total number of units sold (282 single-family homes and condos) pales in comparison to last year’s tallies in April (399), buyers are still snapping up what they can in a marketplace low on inventory, with only 1.7 months’ worth of single-family homes and 0.9 months’ worth of condos for sale, respectively.
Experts predict that both mortgage rates and the typical sales price for a home will continue to rise throughout 2022 before eventually stabilizing, so waiting for the prices to drop might end up costing you more in the long run when the average mortgage rate continues to climb throughout the year. The ongoing demand for housing continues to far outpace the available supply, which means that sellers are also looking at an optimal time to list their homes, as 98.8% of all single-family homes and 100.4% (!) of condominiums received their asking price from buyers in April.
It really goes to show you the power of Maui real estate. Buyers the world over are now free to be working from anywhere, and what better place to set down new roots than here in paradise? If you’re looking to break into the crowded marketplace and find your next home on the Valley Isle (or looking to return top dollar for your home or condominium) then get in contact with the Valley Isle’s very best group of realtors—and now with a brand new look to boot! We’re thrilled to debut our website and brand refresh, and look forward to many more years of service in helping our clients to secure their futures here in paradise. Aloha!