The REALTORS® Association of Maui released their latest report for the month of July last week—and as we’ve been reporting, the Valley Isle’s housing market continues to stabilize as both new listings and closed sales for both single-family units and condominiums fell by a significant amount, even as the median sales prices continues to hover over one million (for single-family homes).
On the whole, the median sales price for single-family homes was still a robust $1.1 million in July, a 5% increase over the median back in July of 2021. However, the ongoing high asking prices and continually rising interest rates have curbed single-family home sales by over 20% year-over-year.
Meanwhile, the condo market suffered an even greater loss, despite their robust median sales price of $789,500. While this represents an 11% increase from this same time last year, overall sales dropped a whopping 52.9%, with only 99 total units closing the deal.
This places Maui Nui very much in lockstep with the rest of the nation, where high prices and several other factors we’ve shared in the recent past have cooled the housing market to a more-nominal rate of growth. “The U.S. housing market has continued to cool, as rising mortgage rates and record-high sales have stifled affordability, weakening demand and pricing out a multitude of buyers. Nationally, median household income has failed to keep pace with increasing mortgage payments, with the costs of buying a home about 80 percent more expensive now than they were just three summers ago,” according to the National Association of REALTORS®.
However, the drop-off in total sales has had at least one positive effect within Maui County: overall inventory has risen. There were 265 single-family homes listed for sale last month, a 6.5% increase year-over-year. Condos fared even better in this regard, growing over 41% from July of 2021’s total available units.
And where were the most expensive markets located? In scenic Kapalua, of course! 3 homes sold for a median sales price of $5.2 million last month, narrowly missing out on the lead from Wailea/Makena, where one home was sold for $5.3 million.
With so much in flux as of late, within the word at large and certainly regarding the local and national real estate markets, uncertainty over what’s to come in the future can be a heavy burden to bear. While we’re glad to see inventory get a bit of a leg up this past month, there is still a long way to go before Maui Nui has nearly enough homes to satisfy kama’aina and national/international buyers of choice. That’s why it’s absolutely vital for you to have a true professional by your side; one who knows all the ins and outs of an ever-changing marketplace and can help you to read the tea leaves in order to help you secure the home of your dreams.
It’s time to level up, Maui—get in touch with your favorite Maui Luxury Real Estate team member today!