Ladies and gentlemen, the sales slowdown is on—but Maui’s median sales price is once again in million-dollar territory for the month of September.
It’s true! While overall single-family homes sales have slowed 50% year-over-year—50.4% from last September, to be precise—the median sales price for single-family units grew by 3% year-over-year this past month, clocking in at $1,025,000 for the month of September. Homes that did sell were sold very quickly indeed, with the typical home spending only 114 days on the market until being sold—nevertheless an increase of over 10% from September 2021’s time of 103 days available on the market.
Meanwhile, condominiums barely missed out on matching their own record-high median sales price last month, coming in at $800,000 and just $20,000 off August’s all-time high of $820k. Similar to single-family homes, closed condo sales slowed by 46.7% last month as compared to September of 2021, whereas the typical number of days units spent on the market until being sold decreased by 31.5% to 74.
Although the Valley Isle will always stand apart from the mainland marketplace for a variety of good reasons—location, location, location—it’s also notable that the Valley Isle has been tracking very much in line with the corrections and slowdowns seen with the rest of the country as of late. Let’s hear it from the REALTORS® Association of Maui as to what exactly we’re seeing (emphasis ours):
The U.S. real estate market continues to slow as we move into fall, as rising consumer prices and higher mortgage interest rates squeeze homebuyer budgets and cool activity. With inflation showing little sign of abating, the Federal Reserve implemented another 75-basis-point hike in September, marking the third such rate increase this year. The cost of borrowing has reached multi-year highs on everything from credit cards to auto loans in 2022 as mortgage interest rates topped 6% for the first time since 2008, causing existing home sales to decline for the seventh consecutive month.
New Listings decreased 39.3 percent for Single Family homes and 52.7 percent for Condominium homes. Pending Sales decreased 30.7 percent for Single Family homes and 36.0 percent for Condominium homes. Inventory increased 7.8 percent for Single Family homes and 9.7 percent for Condominium homes.
Affordability challenges have priced many buyers out of the market this year, and buyers who do succeed in purchasing a home are finding that the costs of homeownership have increased significantly, with monthly mortgage payments more than 55% higher than a year ago, according to the National Association of REALTORS®. Inventory remains lower than normal, and as the market continues to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead.
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