What goes up, must come down—and what goes down must eventually go up!
We all knew this was coming at some point: Last month, the Federal Reserve raised interest rates for the first time in over three years, bringing the record-low mortgage rates borrowers enjoyed over the past year-plus to a close.
The Fed’s quarter-point rate hike also signals what is likely to be the first in a series of rate hikes planned over the next year-plus, potentially raising its overall benchmark rate around two percent by the end of 2022. As a result of these higher rates, potential buyers can expect mortgage rates to continue rising—although it should also be noted that the going rate for mortgages doesn’t always track in line with the Fed’s increases
Overall, economists predict that higher mortgage rates won’t do much to cool down the historically-hot housing market for at least the rest of the year, though it may encourage some home prices to rise at a slower rate than they have been—and that likely goes double for consumers here on the Valley Isle. A national shortage of housing continues to drive prices upward—a trend that is definitely likely to continue here on Maui—and builders continue to grapple with ongoing issues in the supply chain and available labor.
Maui Sales Numbers Soar in 2022
However, despite the likely end of the historically low interest rates that buyers across both Hawai’i and across the country have enjoyed, that doesn’t mean the Maui luxury marketplace has cooled off any!
Indeed, according to the latest figures released by the REALTORS® Association of Maui for March, the median sales price for both single-family homes and condos set a new all-time record for the second time this year:
- Single-family homes: median sales price of $1,177,500 (besting January’s all-time mark of $1.16 million, and a year-over-year growth of 19.5%)
- Condominiums: median sales price of $820,000 (beating February’s all-time mark of $730,500, and growing by nearly 28% over January 2021’s median)
With new listings decreasing by 28.7% for single-family homes and 7.7% for condos, low inventory continues to be one of the primary drivers of the Valley Isle’s historic real estate run. More than 100% of listings are receiving their full listing price—with more than a few receiving more!—with no signs of slowing down in the foreseeable future, and regardless of the current mortgage rate jumps.
How much higher can the Valley Isle’s record-setting year climb in the remaining nine months of 2022? Stay tuned!
PS: Wondering what your home could be worth on the open market today? The Maui Luxury Real Estate Team can give you a competitive market analysis and custom marketing plan for your unit or vacant land—absolutely free, and with no risk or obligation! Fill out our contact form and let’s get started on discovering just how much the Maui Luxury Real Estate Team can do for you.