Category: Maui Real Estate Statistics
Welcome to the 15th edition of our market musings. The last musings was a little more of a backwards looking post as we reviewed notable numbers from the June Stats and took a deep dive into the land market during the first half of the year. This edition focuses on statistics that might be better suited to addressing current market conditions. We also take a longer look at the Wailea and Makena markets. We review the first six months of sales activity and take a look at current market conditions and the market outlook. There is a lot to digest in this post so you may want to be suitably caffeinated before proceeding.
Inventory
While June was a month of substantive increases in inventory, thus far the month of July has seen more limited change. The inventory of single family homes is actually lower now than it was on June 30th. At that time, there were 241 active listings. As of July 23rd, the inventory decreased 3% to 234 active listings.
For the condo market, the inventory of active listings increased modestly. On June 30th, the number of active listings was 199. As of July 23rd, the inventory increased 7.5% to 214 active listings.
Maui’s single family home inventory trends appear to be diverging from the rest of the country when it comes to inventory. That said, we are seeing variability in our market place. Inventory and levels of activity vary by price point and community. We should have an updated break down of inventory trends by price point shortly after the first of the month.
Price Reductions
As of July 23rd, 35.04% of all active listings reduced their price at least once. That is up modestly from July 4th when 34.03% of all active home listings reduced asking price.
For condos, 27.57% of all active condos reduced their price as of July 23rd. That is up from 24.63% of condos on July 4th.
We are little bit ahead of the national average when it comes to price reductions, but the number of price reductions appears to be increasing at a slower rate than national markets.
It is interesting to see our rate of price reductions increasing slowly. Prior to the Covid boom, Maui was always a place where sellers tended to be slower to reduce price. Longer days on market were more common. One question we find ourselves asking a lot around the office is what a new real estate normal will look like on island moving forward? Will we go back to typical Maui seller behavior pre-covid or will seller behavior more closely resemble mainland markets? It may take some time to determine the answer to that question.
Quick Sales
Another metric we started tracking earlier in the year is the percentage or properties that go under contract within 10 days of coming to the market. Of the homes and condos listed between July 1st and July 8th, 31.91% went under contract within 10 days of coming to market. That is actually up from June 14th-21st when only 25.37% of listings went under contract within 10 days of coming to market. That said, this is also the first time this year when the percentage of homes going under contract within 10 days was lower than the same period of 2019.
It is also worth noting that there is difference between the home and condo market. Of the homes listed between July 1st and July 8th, 23.53% went under contract within 10 days of coming to market. Of the homes listed during the same seven day period of 2019, 25.81% went under contract within 10 days. The condo market continues to see properties go under contract at a brisker pace. Of the condos listed between July 1st and July 8th, 36.67% went under contract within 10 days. That is just ahead of condos listed during the same seven days of 2019 when 36.11% went under contract within 10 days
Some Quick Thoughts on Current Conditions
It’s a strange market out there. Buyer demand is well below what we saw during 2021 and earlier this year with far fewer properties under contract. That said, inventory levels remain well below normal in most communities around the island. It’s likely that the lack of inventory is one reason why we aren’t seeing more price reductions.
It seems as if there is a little bit stronger demand in the condo market than the single family home market judging by the higher percentage of properties going under contract within 10 days. That comes despite a little more condo inventory coming to market.
Buyers will find conditions less competitive than earlier this year. However, well priced properties in areas and price points with low demand can still generate multiple offers. Overall, sellers can expect longer days on market and fewer buyers. Sellers should be particularly mindful of market conditions specific to their community and price point when pricing their property. It’s also worth remembering that negotiation and give and take is a lot more likely today than it was six months ago.
Wailea and Makena Market Overview
This is the first of a handful of features we will be doing in our market musings looking at specific communities on the island. Today, we are focusing on the resort markets of Wailea and Makena. Its worth noting that I used the term markets plural. While our MLS lumps the two areas together, the two communities have differences that make them unique. Wailea is significantly more developed with large hotels, a shopping center and a lot more neighborhoods and condo complexes. While expensive, the entry point for Wailea is much lower than Makena. Makena is smaller, less developed and has the highest concentration of high priced homes on the island.
Wailea Home Sales
This is a look back at single family home sale activity in Wailea during the first six months of 2022. These are some of the most notable numbers from that time.
- Maui Realtors reported 17 homes sold in the Wailea Resort in the first half of the year. That is down 43% from the 30 sales reported during the first six months of 2021.
- Inventory constraints played a significant part in the reduced sales. Decreased demand may be another factor in the second quarter of the year, but it is hard to say definitively.
- Seven of seventeen sales closed for over asking price. Ten of seventeen sold for asking price or above. Demand was strong for the limited inventory available.
- Nine of the seventeen sales were reported to be all cash transactions.
- The median and average price of the homes sold in the first six months of the year is $2,800,000 and $3,478,441 respectively. This is actually down from last year when the median and average price of $3,475,000 and $3,973,168.
- To be clear, the value of homes in Wailea did not depreciate this year. This shift in medians and averages stems from a difference in the composition of inventory sold. The chart below shows the difference between the first halves of 2021 and 2022. While there were still a fair number of sub-$2,000,000 sales in 2021, there was also a much higher volume of transactions for $4,000,000 and above in 2021. This stems in part from the much lower inventory of homes above $4,000,000 in Wailea this year.
- The lowest priced home to sell during the first half of the year in Wailea closed for $2,270,000. That buyer purchased a 3 bedroom, 4 bath home with 2,562 square feet of living space and a pool in the Wailea Kai subdivision.
- The highest priced Wailea sale during the first half of the year closed for $8,750,000. The home in Wailea Highlands includes 4 bedrooms, 7 baths and 8,657 square feet of living space on just under a half acre.
- Wailea Golf Vistas experienced the most sales activity with 5 transactions. Wailea Pualani saw the second most sales with 4 transactions.
Wailea Condo Sales
The numbers below are some of the most noteworthy from the first six months of condo sales in Wailea.
- Maui Realtors reported 77 condo sales in Wailea during the first half of the year. That is down 51% from the 157 sales reported during January-June of 2021.
- Again, scarcity was a big factor in the decrease in sales. At one point in the first quarter, active Wailea inventory dipped to 6 condos. Some of the difference between the two years can also be attributed to new developer sales in Makali’i. The 2021 sales were boosted by 20 closes in Makalii based on contracts signed 2-3 years prior.
- Of the 77 sales, 26 or 33.77% sold for over asking price. An impressive 54 out of 77 sales or 70.13% of all transactions closed for asking price or above. Again, this points to strong demand and competition for the limited supply.
- Maui Realtors reported that 48 out of 77 or 62% of closed transactions were cash purchases.
- The median and average prices of condos sold in Wailea came in at $1,630,000 and $2,408,720 respectively. The median price increased 20.91% and the average price increased 26.56%. These numbers reflect not only increasing values, but also a greater proportion of high priced transactions.
- The lowest priced Wailea condo sale during the first part of the year closed for $650,000. That was for a studio unit in Wailea Ekahi.
- The highest priced condo to sell during the first half of 2022 is located in Wailea Beach Villas. The ground floor unit in the D building closed for $12,500,000. The 3 bedroom, 3.5 bathroom unit includes 2,889 square feet of living space and a private plunge pool.
- Wailea Ekahi and the Palms at Wailea had the most sales activity of any complex in Wailea Resort to start the year with 14 sales each.
Makena Home Sales
- Maui Realtors reported 7 home sales in the Makena area during the first half of 2022. That is the same number as what was reported during the first half of 2021.
- Two of the seven sales closed for over asking price. None of the homes sold for above asking. As you get to these price points, competition decreases and negotiation is more common.
- The median sales price for the 7 Makena homes sold is $17,200,000. The average sales price came in at $18,825,564. That is a 72% increase in median sales price over last year’s $10,000,000 sale. It is a 35.94% increase over last year’s average sales price of $13,848,071.
- This year’s low sale came in Makena came in at a $12,875,000. The oceanfront home in Makena Place includes 4 bedrooms, 4.5 bathrooms and 4,304 square feet of living space.
- The highest priced sale in Makena and the highest sale on Maui for the year to date closed for $26,490,700. That estate includes 8 bedrooms, 8 bathrooms, 10,464 square feet of living space plus a pool house on an acre across the street from the ocean.
- In terms of activity within subdivisions, two homes closed in Makena Place and two homes closed in One Palauea Bay.
Makena Condo Sales
- Maui Realtors reported 9 condo sales in Makena during the first 6 months of 2022. That is down 36% from last year’s first half tally of 14 sales.
- Two of the nine sales sold for full price. No sales closed for above asking price.
- The median and average prices of the 9 condos sold are $4,000,000 and $4,950,645 respectively. Median increased 42.98% over last year’s median of $2,797,500. The average price increased 26.89% over last year’s average of $3,901,500.
- The lowest priced condo transaction in Makena closed for $3,250,000 for a 2 bedroom, 2.5 bathroom 2,745 square foot unit at Na Hale O Makena.
- The highest priced condo transaction in Makena during the first six months of the year closed for $11,256,000. That was a Molokini Residence at the Makena Golf and Beach Club with 5 bedrooms, 5.5 bathrooms and 4,430 square feet of living space.
- Makena Surf saw the most sales activity during the first half of the year with 4 closes.
Wailea and Makena Market Outlook
Of course all of the sales referenced above reflect past market demand. The million dollar question, or twenty million dollar question in the case of some Makena residences, is what can we expect for the second half of the year? Surprising market behavior over the last two years makes any sort of prognostication a challenge and current economic uncertainty makes it that much harder. That said, it is worth at least touching on both the supply and demand side of the equation.
Wailea and Makena Inventory
On the supply side, there is still some variability by location and property type. There are currently 8 active home listings in Wailea with 4 pending. That is a pretty limited supply considering sales and current pending. It is worth noting that of that supply, a couple of sellers are reaching for some pretty big numbers for their respective neighborhoods. While record highs are normal of late, some of the prices are well above previous neighborhood highs. It is also worth noting that only 3 of 6 subdivisions have active inventory, and 5 of 8 listings are in Wailea Pualani.
There are currently 24 active condo listings in Wailea with 8 pending sales. A quick side note, the pending number does not include the 75 pending new developer sales at La’i Loa at Wailea Hills. This is up quite a bit from the 6 active listings on February 1. That said, it is still less than 2 months supply. Again, when honing in on certain condo complexes the inventory is particularly limited. There are six condo complexes with just 1 active listing and 5 condo complexes with no active inventory. It is also worth considering that 3 of the active listings are seeking prices well above all time highs in their complex. There are a number of other sellers seeking new high prices for their respective location or floor plan in their development.
There are currently 5 active home listings and 1 pending sale in Makena. That’s almost 5 months of inventory based on the first half of the year, but it is worth noting that the 7 sales during the first halves of 2021 and 2022 is pretty extraordinary activity. That makes the 5 active listings a healthy inventory for prospective buyers with the considerable means necessary to shop in this part of the island.
The Makena condo market inventory is literally zero. If you are looking for a place in one of the three condo developments or the Makena Golf and Beach Club, it is a waiting game.
The big unknown is what type of new inventory we may see through the end of the year. Inventory growth in July thus far is negligible.
What about Wailea and Makena Demand?
With Makena and Wailea predominantly second home markets, what type of demand will see from second home buyers in a shifting market? The amount of cash involved with transactions makes the market less sensitive, but not completely immune to increases in mortgage rates. Nationally, second home demand is down according to Redfin reports. What about some of the current market indicators we’ve used for the general market?
Of the eight properties listed in the area this month, two went under contract in less than 10 days or 25%. That is just a hair better than the overall Maui market. Of the current Wailea condo inventory, 29% of active listings reduced their asking price. For Wailea Homes, 28.57% of active listings reduced their price. For Makena Homes, 60% or 3 of 5 listings reduced their price. The Wailea numbers are below what we are seeing for price reductions island wide. The one caveat I might add is that historically, resort market listings are slower to adjust price. The Makena number is high, but it also is worth mentioning that pricing properties in the $10,000,000 plus range comes with its own set of challenges. These are large, very unique custom homes not as well suited to comparative valuations.
One last thing to mention is seasonality. Looking at the chart above, you can see that there is a general seasonality to the market in Wailea Home Sales with more properties going under contract during the first half of the year than the second. The same is true for Wailea condos. Makena is a little more random due to its small sample size. If the market follows typical behavior, we should expect less sales activity this year.
Based on all of the above, the Wailea and Makena markets should see less activity for the remainder of the year due to the combination of market trends, seasonality and limited supply. Barring a massive influx of supply and/or a significant worsening of the current economic situation, the limited supply should keep prices elevated.
You can search through the current inventory of Wailea and Makena Homes for Sale and Wailea and Makena Condos for Sale on our site.
A Little Maui Beauty to Brighten This Post
Contact The Maui Real Estate Team
Congratulations if you made it to the end of this post. It was a long one! It also must mean you are pretty interested in the Maui market. Feel free to Contact The Maui Real Estate Team with questions or for assistance buying or selling property on Maui. We would welcome the chance to be of assistance.
Welcome to Maui Real Estate Musings Volume XIV! The fourteenth edition of the musings looks back at some of the notable numbers from the June 2022 Maui Real Estate Statistics. There is also an in-depth look at the land market during the first half of 2022. Without further ado…
Notable Numbers from the June Maui Real Estate Statistics
The numbers below are from just the island of Maui. They do not include sales from the islands of Lanai or Molokai. For that reason, they are a little different than the Realtor’s Association of Maui Statistics. It is also worth keeping in mind that these numbers look backwards in terms of market demand. The sales are based primarily on contracts written earlier in the spring from March through May.
June Home Sales
- Maui Realtors reported 83 homes sold in June of 2022. That is down 25% from the 110 homes sold in June of 2021.
- Sales numbers continue to decrease due to both decreased demand and limited inventory throughout the spring.
- While demand may be down, the limited inventory still created a competitive environment for prospective buyers. Of all the homes sold in June on Maui, 33.78% sold for over asking price and 54.22% sold for asking price or above.
- The lower price points of the market remained the most competitive. Of the homes sold for under $1,000,000, 61% sold for over asking price and 84% sold for asking price or above.
- Competition eased a little from May when 35.48% of all homes sold for over asking price and 61.29% sold for asking price or above. It is also the first month this year where the percentages are lower than the year before. The June 2021 numbers were 36.36% above asking and 54.55% asking price or above. For a little context, June 2019 “pre-covid” numbers were 3.45% sold over asking price and 27.59% sold for asking price or above.
- The Median Sales price for the homes that closed in June came in at $1,275,000. That is 14% higher than June 2021’s median of $1,117,500.
- The Average sales price of homes sold in June came in at $1,837,250. That compares to last June’s average of $1,734,816.
- Average sales price continues to be boosted by strong luxury market activity. That includes one sale over $10,000,000, two additional sales over $5,000,000 and a total of 16 homes sold over $2,000,000.
- The highest priced transaction in June closed for $16,013,250. The five bedroom/ 3 bath oceanfront home in Makena is one of the very limited number of homes on island with zoning that allows vacation rentals.
June Condo Sales
- Maui Realtors reported 147 condos sold in June. That is 38% lower than the 239 sold in June of 2021.
- As with the home market, decreased volume reflects both a decrease in demand and constrained inventory.
- Demand for the limited inventory remained sufficient throughout the spring to keep the market competitive among buyers. Of the June condo sales, 33.33% sold for above asking price and 60.54% sold for asking price or above.
- That is pretty comparable to May when 31.94% sold for over asking price an 66.67% sold for asking or above. Again for some pre-Covid context, in June 2019 only 12.2% of sales closed for over asking and 37.4% sold for asking price or above.
- The median price of the condos sold in June is $840,000. That is 29% higher than last June’s median of $650,000.
- The average price of the condos sold in June is $1,240,840. That 26.14% higher than the average of $983,638 in June of 2021.
- Luxury condo market activity is helping to push up that average sales price. Twenty-nine condos closed for more than $1,500,000 including 3 condos over $5,000,000 and 1 over $10,000,000.
- The highest priced condo to sell in June is located in the Makena Golf and Beach Club. The Molokini Residence floor plan with 5 bedrooms, 5.5 bathrooms and 4,430 square feet of living space closed for $11,256,000.
Looking at the Maui Land Market
The Maui land market is something of a forgotten stepchild of Market Musings. We typically focus on the far busier home and condo markets. In an attempt to make up for past oversight, I thought I would take a deeper dive into the land market for the year to date.
Year to Date Sales Volumes
| Sales | New Pending Sales | New Inventory | Cancelled Listings | |
| January | 19 | 25 | 28 | 4 |
| February | 27 | 16 | 15 | 7 |
| March | 20 | 21 | 23 | 5 |
| April | 20 | 17 | 34 | 10 |
| May | 16 | 9 | 20 | 11 |
| June | 7 | 8 | 10 | 8 |
Looking at the numbers in the chart above, the data that stands out the most is the decrease in sales in June. The decline in new pending sales in May and June suggest that we are likely to see lower sales number in the next month or two as well.
The chart above gives some context on how monthly land transactions in 2022 compare to the previous four years. If you are looking at the chart on a smaller device and you can’t read the key, the darker blue line is 2022, the orange 2021, the grey 2020, the yellow 2019 and the light blue 2018. Needless to say, 2022 sales volume is well below the first half of 2021. While 2022 sales started stronger than 2018-2020, sales appear to be trending below the pre-covid numbers in 2019 and 2018.
The other thing that the chart speaks to is the variability in the market. Year to year patterns in market activity are a little harder to distinguish. You can see some signs of seasonality with the first halves of the year typically busier than the second. Unsurprisingly, 2020 is a clear outlier with a much stronger second half of the year. Sales during the first half of 2019 are quiet for a “normal” year. Month to month fluctuations make the chart a little noisier.
A lot of the noise stems from the limited volume of land sales on a monthly basis. A few more or a few less buyers in any one month can make a big difference in the chart. While the island hasn’t had a lot of new land developments over the last five years, sales in these developments can provide a pretty health boost to the monthly numbers. Sales in places like Mahana Estates in Kapalua and Haiku Town Acres helped boost sales volume in late 2020 and spring of 2018 respectively. Otherwise, the market is largely driven by resales, small subdivisions and condominiumized lots.
Year to Date Pricing
The median price of the lots sold in the first half of the year came in at $845,000. That is 20.71% higher than the median during the first half of 2021. The average sales price for lots during the first half of the year came in at $1,355,768. That is a whopping 55.60% higher than January to June 2021 average of $871,266.
The high average price this year stems both from an increase in the proportion of sales over $1,000,000 and a decrease in the proportion of sales below $500,000. A whopping 39.82% of all sales in the first half of 2022 closed for $1,000,000 or higher. That compares to 29.21% of the sales during the first half of 2021. The percentage of lots sold for $500,000 or under came in at 20.35% in the first half of 2022. That compares to 25.84% selling for $500,000 or less in the first half of 2021.
Inventory
While inventory grew this spring, the rate of growth slowed in June, and new inventory is limited to date in July. The price distribution of the inventory is notable as well. Of the 79 active lots on the market as of July 14th, only 15.9% are listed for under $500,000 while 63.29% of the inventory is priced for $1,000,000 or higher. A whopping 21.52% of the inventory is priced for $3,000,000 or higher.
Maui Land Market Outlook
As mentioned above, the decrease in pending sales suggest slowing sales volume will continue in the near future. That shouldn’t be too big of a surprise with the overall volume of sales slowing on island. The question is whether the decrease is a blip or a trend?
I can’t speak with any sense of certainty, but it is worth noting that the land market faces headwinds going forward. Lower priced inventory is scarce. Higher interest rates and uncertainty over the direction of future interest rates is a barrier for those who want to build and refinance into a conventional home loan going forward. My understanding is that building material costs remain pretty high although there may be some relief in the future as commodity prices come down. That said, construction labor is likely to remain high on island. When talking to a contractor earlier this year, he indicated he had to keep raising the hourly wage of his employees. Otherwise, employees struggled to afford rentals under his older wage structures. It will likely require a decrease in local rents or a big construction slow down for labor costs to adjust.
The other question is to whether we will continue to see higher demand in the $1,000,000 plus inventory. Only 13-16% of all sales closed for over $1,000,000 during 2018-2019. Will we continue to see elevated demand for higher priced lots as the market normalizes?
The one thing likely to bolster the land market moving forward is continued scarcity. There aren’t a lot of land projects on the horizon. Resales, condominiumized lots and the occasional small subdivision are the likely source for inventory in the future. This is an island so areas with sufficient water, infrastructure and zoning for future development remain finite.
A Little Maui Beauty to Brighten Your Day
Contact The Maui Real Estate Team
Questions about this post? Interested in buying or selling property on Maui? Contact The Maui Real Estate Team. One of our agents would welcome the chance to sit down with you to answer questions and to learn more about your Maui Real Estate needs.
It’s the beginning of a new month and the end of the first half of the year. Milestones like that typically call for a look back at first half of the year stats. That said, the market in the first quarter of the year is a lot different than the market now. While we intend to look at the June sales numbers in the next musings, the focus of this edition is on statistics that are more relevant to current conditions. The three main statistics reviewed in Volume XIII include inventory, price reductions and the number of properties going under contract within ten days of coming to market.
Inventory Watch for Single Family Homes
At the end of May, we started documenting end of month inventory for different communities and price points. We did it again on the last day of June. The intent is to track inventory at a more granular level than the island wide inventory statistics released by the local Realtor’s Association.
| May 31, 2022 | June 30, 2022 | |||
| Active | Pending | Active | Pending | |
| <$750,000 | 6 | 22 | 6 | 16 (-6) |
| $750,000-$999,999 | 19 | 54 | 32 (+13) | 63 (+9) |
| $1,000,000-$1,499,999 | 43 | 37 | 58 (+15) | 34 (-3) |
| $1,500,000-$1,999,999 | 30 | 27 | 44 (+14) | 22 (-5) |
| $2,000,000-$2,999,999 | 37 | 14 | 34 (-3) | 15 (+1) |
| $3,000,000-$4.999,999 | 24 | 11 | 27 (+3) | 10 (-1) |
| $5,000,000-$9,999,999 | 22 | 8 | 23 (+1) | 8 |
| $10,000,000-$19,999,999 | 9 | 2 | 13 (+4) | 0 (-2) |
| $20,000,000+ | 3 | 1 | 4 (+1) | 1 |
| Totals | 193 | 176 | 241 (+48) | 169 (-7) |
| May 31, 2022 | June 30, 2022 | |||
| Active | Pending | Active | Pending | |
| Haiku | 15 | 12 | 20 (+5) | 13 (+1) |
| Hana | 5 | 3 | 4 (-1) | 2 (-1) |
| Ka’anapali | 13 | 6 | 11 (-2) | 7 (+1) |
| Kahului | 11 | 24 | 8 (-3) | 27 (+3) |
| Kapalua | 4 | 2 | 5 (+1) | 3 (+1) |
| Kihei | 27 | 25 | 45 (+18) | 22 (-3) |
| Kula | 24 | 12 | 25 (+1) | 13 (+1) |
| Lahaina | 15 | 15 | 20 (+5) | 18(+3) |
| Makawao | 11 | 17 | 13 (+2) | 12 (-5) |
| Napili/Kahana/Hono… | 12 | 5 | 12 | 3 (-2) |
| Pukalani | 5 | 12 | 12 (+7) | 7 (-5) |
| Spreckelsville /Paia | 12 | 4 | 11 (-1) | 2 (-2) |
| Wailea/Makena | 8 | 5 | 13 (+5) | 4 (-1) |
| Wailuku | 28 | 32 | 39 (+11) | 33 (+1) |
End of June Home Inventory Overview
Here are a couple of quick notes about the data above to provide some framework. The price ranges cover all of Maui. They do not include the islands of Lanai or Molokai. The list of districts above is limited to those with the most activity.
- The overall trends on inventory are pretty clear with just under a 25% increase in active listings and a 4% drop in pending sales over the last month. A substantial spike in interest rates provided the backdrop for this shift in active and pending sales.
- Honing in on various price points, you can see a little more variability in the market.
- Active inventory below $750,000 remained unchanged while pending sales decreased.
- When you bump up to the $750,000-$999,999 range, inventory increases are substantial, but it is also the price range with the largest increase in pending sales activity.
- The $1,000,000-$2,000,000 range saw a significant increase in active listings with a drop in pending sales activity.
- The luxury home market experienced more modest increases in inventory and the decline in pending sales is less significant.
- The variability in numbers at a district level is a little more of a head scratcher.
- Kihei inventory grew the most with a 66% increase in active homes for sale.
- Neighboring communities saw different trajectories in inventory. Kahului’s inventory fell while the number of active homes in Wailuku grew almost 40%.
- Within the luxury markets, Wailea and Makena experienced a pretty healthy bump in inventory. Kapalua has one more active home listing while active inventory in Ka’anapali is down.
Inventory Watch for Condos
| May 31, 2022 | June 30, 2022 | |||
| Active | Pending | Active | Pending | |
| <$250,000 | 5 | 9 | 2 (-3) | 8 (-1) |
| $250,000-$499,999 | 12 | 23 | 19 (+7) | 25 (+2) |
| $500,000-$749,999 | 18 | 55 | 31 (+13) | 40 (-15) |
| $750,000-$999,999 | 29 | 54 | 44 (+15) | 46 (-8) |
| $1,000,000-$1,499,999 | 23 | 49 | 29 (+6) | 30 (-19) |
| $1,500,000-$1,999,999 | 21 | 34 | 28 (+7) | 34 |
| $2,000,000-$2,999,999 | 19 | 40 | 20 (+1) | 36 (-4) |
| $3,000,000-$4,999,999 | 12 | 22 | 11 (+1) | 25 (+3) |
| $5,000,000-$9,999,999 | 7 | 7 | 11 (+4) | 3 (-1) |
| $10,000,000+ | 3 | 0 | 4 (+1) | 0 |
| Totals | 149 | 293 | 199 (+50) | 247 (-46) |
| May 31, 2022 | June 30, 2022 | |||
| Active | Pending | Active | Pending | |
| Ka’anapali | 23 | 23 | 23 | 15 (-8) |
| Kahului | 5 | 8 | 4 (+1) | 3 (-5) |
| Kapalua | 7 | 15 | 12 (+5) | 9 (-6) |
| Kihei | 35 | 95 | 55 (+20) | 74 (-21) |
| Lahaina | 14 | 8 | 16 (+2) | 5 (-3) |
| Maalaea | 3 | 5 | 5 (+2) | 5 |
| Napili/Kahana/Hono… | 34 | 39 | 48 (+14) | 34 (-5) |
| Wailea | 16 | 91 | 23 (+7) | 85 (-6) |
| Wailuku | 9 | 11 | 12 (+3) | 12 (+1) |
End of June Maui Condo Inventory Overview
As with the home market, the price points table includes all condos on Maui, but it does not include condos on Molokai or Lanai. The table with districts is limited to the districts with the most activity. As mentioned in the last Musings, pending sales at La’i Loa at Wailea Hills skew the data in Wailea and the $1,500,000-$5,000,000 price ranges. There are 75 pending sales in that development based on contracts penned in 2020 and the first quarter of 2021. Those pending sales won’t start to close until sometime in 2023.
- The increase in condo inventory between May and June is more pronounced with a 33% jump in active condo listings. Pending condo sales dropped 16%.
- Honing in on the different price points, all price ranges with the exception of condos priced below $250,000 experienced an increase in active inventory.
- The biggest increase occurred in the $500,000 to $749,999 price range.
- On the pending sales front, all but three price ranges had a decrease. The $250,000 to $499,999 price range saw a modest increase. The number of pending condos sales stayed the same from $1,500,000 to $1,999,999. The $10,000,000 plus condo market remained unchanged with no pending listings.
- Looking at inventory from a district level, active inventory increased in all communities except for Ka’anapali.
- Ka’anapali condos are the outlier when it comes to resort condo inventory. Kapalua inventory increased 71% and Wailea inventory increased 44%. It is worth noting these increases are coming from near historic lows in inventory. That 71% increase in condo inventory in Kapalua is due to just 5 more listings.
- Other notable increases in inventory occurred in the markets that were the busiest earlier this year. Kihei active condo inventory increased 57%. Napili, Kahana and Honokowai active listings increased 41%.
Price Reductions
As of July 4th, 34.03% of all active home listings on Maui reduced their asking price one or more times. That compares to 33% on May 24th and 29.5% on June 7th. After seeing a small dip in price reductions in early June, those numbers appear to be rising again.
For condos, 24.63% of all active condo listings reduced their price one or more time. The increase in price reductions is steady. The percentage of active listings that reduced price was 18.2% and 20.9% on May 24th and June 7th respectively.
It’s important to note that the higher number of price reductions isn’t indicative of decreasing values at this point in time. In many cases, this is sellers who priced ambitiously adjusting to the realities of a shifting market.
Market Response to New Listings
Another metric that we’ve tracked in our market musings is the percentage of new listings going under contract within 10 days. We started to track this in mid February, a time period when competition for inventory remained incredibly strong. At that time, 56% of all new listings were under contract within 10 days. As posted in Musings XI, that number dipped to 35.54% for the period between May 18th and May 25th. For the period between June 14th and June 21st, the number dropped to 25.37%.
While the number above shows a pretty significant cooling of the market, context is key. Between June 14th and June 21st of 2019, only 17.28% of all listings went under contract within the first ten days of coming to market. There are still buyers out there acting quickly when well priced properties come to market.
Takeaways for Buyers and Sellers
When interest rates spiked over 6% in early June, the hyperbolic takes on the real estate market came fast and furious. The crowing of the bubble watchers became deafening. In places like Boise and Phoenix, it looks like there may be some drastic shifts in the market. That said, what’s true for Boise may not be true for Maui. Our goal is to strip out the hype so buyers and sellers can make informed decisions.
To be clear, the Maui Market continues to cool down from the frenzied market of earlier this year. While inventory is growing, the growth in inventory started later than most markets on the mainland. We are still seeing inventory levels well below normal. While pending sales are decreasing, the percentage of properties going under contract in ten days or less is higher than during the same period of 2019. As the numbers above show, market conditions are showing variability based on location and price points. Where you are buying or selling in the market will impact your experience.
Buyers shopping in most price points will appreciate the increased inventory compared to the scarcity of earlier this year. While competition is down, well priced properties may still see bidding wars. This is particularly true at the lower priced points of the market where inventory remains truly scarce.
Prospective sellers will want to look closely at conditions specific to their price point and community when pricing their property. In those areas where inventory is growing the most and demand is shrinking, you will want to be particularly mindful of not overpricing your property. Sales will likely take longer. With buyers largely moving out of the FOMO mentality, a little give and take may be necessary to get deals done.
Some Maui Beauty to Brighten This Post
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The latest edition of Maui Real Estate Musings is coming from the road. While I may be on the mainland, I still have an eye and ear on the Maui Real Estate Market. Volume XII addresses the elephant in the room from last week’s real estate news. As promised in Musings XI, there is also a review of end of May inventory numbers by district and price point. Finally, we take a quick look at the percentage of active home and condo inventory with price reductions. Without further ado, and so I can get back to hanging out with the in-laws, here is musings volume XII.
The Elephant in The Room
The elephant in the room of course is interest rates. Interest rates on the 30 year fixed mortgage spiked to over 6.2 percent last week. Stronger than expected inflation numbers for May and the resulting anticipation of sharper increases in the Federal Funds rate fueled a strong spike in mortgage rates. This is a significant difference in borrowing costs from interest rates below 3% a year ago.
Prior rate increases this year pushed some buyers out of the market. Needless to say, it is likely that this recent rate increase will further thin the pool of financed buyers. Those that do stay in the market, will be able to afford less home. It is possible that we see a brief uptick in activity in the market as buyers who locked in lower rates feel heightened urgency to purchase. Conversely, the shift in rates may cause a more immediate slow down in demand. We shall see how it plays out.
Of course, the smaller pool of buyers and less purchasing power from financed buyers will cause other impacts to the market. Lesser demand will likely lead to growing inventory. Keep in mind, we are still experiencing inventory numbers well below normal. How quickly and how much inventory grows is something of an unknown. The other thing we are likely to see is price reductions. A lot of sellers on the market initially entered the market at prices that assumed continued rapid appreciation. With less demand and less competition, many sellers will need to adjust expectations and pricing.
End of May Inventory Levels
The Realtors Association of Maui tracks end of month inventory levels island wide for homes and condos. We report on those numbers regularly. I took it a step further documenting inventory levels by district and price point on the island. The numbers are meant to serve as a baseline for future comparisons. It is a means to track changes in inventory among different market segments. That said, there is some interesting information to be gleaned from just the May numbers. They show some of the recent variability in inventory levels and market conditions based on both geography and price point.
End of May Home Inventory
| Active | Pending | |
| Haiku | 15 | 12 |
| Hana | 5 | 3 |
| Ka’anapali | 13 | 6 |
| Kahului | 11 | 24 |
| Kapalua | 4 | 2 |
| Kihei | 27 | 25 |
| Kula | 24 | 12 |
| Lahaina | 15 | 15 |
| Makawao | 11 | 17 |
| Napili/Kahana… | 12 | 5 |
| Pukalani | 5 | 12 |
| Sprecks/Paia | 12 | 4 |
| Wailea | 8 | 5 |
| Wailuku | 28 | 32 |
End of May Home Inventory by Price Point
| Active | Pending | |
| <$750,000 | 6 | 22 |
| $750,000-$999,999 | 19 | 54 |
| $1,000,000-$1,499,999 | 43 | 37 |
| $1,500,000-$1,999,999 | 30 | 27 |
| $2,000,000-$3,000,000 | 37 | 14 |
| $3,000,000-$4,999,999 | 24 | 11 |
| $5,000,000-$9,999,999 | 22 | 8 |
| $10,000,000-$19,999,999 | 9 | 2 |
| $20,000,000+ | 3 | 1 |
End of May Home Inventory Takeaways
- Kahului has the lowest ratio of active listings to pending listings with 11 active listings compared to 24 pendings.
- Kula and Paia have the highest ratio of active home listings to pending sales.
- The ratio of pending sales to active sales is higher in districts with more lower priced options and less second home activity. There is stronger demand and more competition for lower priced primary residences.
- The ratio of pending listings to active listings by price point corroborates the point above. The number of active listings is a small fraction of the pending listings below $1,000,000. There are no homes in the resort markets below $1,000,000.
- With the exception of the $1,500,000 to $1,999,999 range, the higher you go in price point, the the ratio of active listings to pending sales increases.
- While the resort communities have more active listings than pending sales, the inventory in these communities remains limited.
- The same can be said for higher price points. With the exception of the highest price points, inventory is still well below normal in the $2,000,000 to $5,000,000 range.
End of May Condo Inventory by District
| Active | Pending | |
| Ka’anapali | 23 | 23 |
| Kahului | 5 | 8 |
| Kapalua | 7 | 15 |
| Kihei | 35 | 95 |
| Lahaina | 14 | 8 |
| Ma’alaea | 3 | 5 |
| Napili/Kahana/Honokowai | 34 | 39 |
| Pukalani | 0 | 0 |
| Wailea | 16 | 91 |
| Wailuku | 9 | 11 |
End of May Condo Inventory by Price Point
| Active | Pending | |
| <$250,000 | 5 | 9 |
| $250,000-$499,999 | 12 | 23 |
| $500,000-$749,999 | 18 | 55 |
| $750,000-$999,999 | 29 | 54 |
| $1,000,000-$1,499,999 | 23 | 49 |
| $1,500,000-$1,999,999 | 21 | 34 |
| $2,000,000-$2,999,999 | 19 | 40 |
| $3,000,000-$4,999,999 | 12 | 22 |
| $5,000,000-$9,999,999 | 7 | 7 |
| $10,000,000+ | 3 | 0 |
End of May Condo Inventory Takeaways
- First things first, there is an important thing to note in the pending condo numbers. They include 75 pending sales in La’i Loa at Wailea Hills. This development is under construction and the bulk of the contracts were signed in the second half of 2020 and the first quarter of 2021. These pending sales skew the numbers for Wailea and the price points between $1,500,000 and $4,999,999.
- The Kihei Condo market numbers reflect its frenzied state over the last 12 months. This includes both vacation rental and non-vacation rental properties. Supply appears to be well below demand.
- The price points between $500,000 and $1,500,000 have the highest ratio of pending sales to active listings.
- The $5,000,000 to $9,000,000 range shows a lot less active inventory vs recent demand compared to the single family homes in this range.
- Lahaina is notable as the only district with more active condo listings than pending listings.
- Overall, the condo market inventory numbers reflect more scarcity and higher activity across the board than the home market.
A Few Final Thoughts on the Inventory Numbers
This data is lagging behind a few weeks at this point. I will be posting the numbers for the end of this month shortly after the first of July. I suspect we will see increases in inventory across a number of districts and price points. Another “flaw” to this analysis is that it lacks a baseline of comparison to historical numbers. Unfortunately, old Realtors Association of Maui statistics track monthly sales and not active inventory. I wish we had a “normal” number for districts and price points. I am going to need to rely on anecdotal observations as to what seems normal for active listings.
Price Reductions
I did want to look at one statistics that gives more of a current look at market conditions. Price reductions give us some sense of demand and how sellers are currently responding to shifts in demand. As of June 22nd, 32.4% of active home listings reduced their price. That is up from 29.5% on June 7th. It is still a little below May 24th when 33% of all active home listings reduced below listing price. For condos, 22.5% of the active inventory reduced their price as of June 22nd. That is up from June 7th and May 24th when 20.9% and 18.2% of the active inventory reduced prices respectively.
Some Maui Beauty To Brighten Your Day
This week’s beautiful Maui tweet comes with a bonus link to an article on South Maui Summer Activities.
Wrapping Things Up
It’s clear that market conditions are changing. A few quick final thoughts for sellers and buyers. Sellers, it is pretty clear the market is a lot different than it was 6 months or even 3 months ago. If your list prices were aspirational, price adjustments may be necessary to get in line with the market. Less competition means less leverage when it comes to negotiations. For buyers, the reverse is true and you may start to have an opportunity to negotiate. There is more opportunity for due diligence and there may be some more choice available to you. The trade off for financed buyers is more purchasing power.
With changing market conditions, quality representation remains as important as ever. Contact The Maui Real Estate Team to discuss your real estate needs. We look forward to being of assistance.
Once again it’s time for another edition of Maui Market Musings. Your almost weekly source for the latest and greatest Maui Real Estate Statistics and market observations. The musings are also rumored to cure insomnia for those that have no interest in real estate. Although, we need to go through clinical trials before we can make that claim officially. This edition of the musings looks at notable numbers from the May stats and a few statistics that point towards current market conditions.
Notable Numbers from the May Maui Statistics
I looked through the latest statistics from the Realtor’s Association of Maui (RAM) and did a little number crunching of my own. The numbers below represent some of the more interesting items from the May Sales activity on Maui. They are just for the island of Maui. RAM’s stats include sales on Lanai and Molokai.
May Home Sales
- Maui Realtors reported 93 home sales on Maui. That is down 20% from last year’s 116 sales.
- While increased mortgage rates in March and April likely impacted sales, low inventory remains a factor too. The end of the month inventory of active home listings between February and April averaged about 15% below the same period of 2021.
- While we may be seeing lower sales numbers, competition for the available inventory remained robust. Of the homes that sold, 35.48% sold for over asking price and 61.29% sold for asking price or above.
- That is quite a bit stronger than last May when 25.86% sold for above asking price and 50.86% sold for asking price or higher. It is also higher than April when 32.35% sold for over asking price and 55.88% sold for asking price or above.
- The median price of homes sold in May is $1,225,000. That is 20% higher than the May 2021 median home sale price.
- The increase in median is a reflection of both price appreciation and a lack of inventory at lower price points. There were only 8 homes sold on island for less than $800,000 last month. The May prior, 37 homes sold for less than $800,000.
- The average price of homes sold in May 2022 came out to $2,309,049. That is a 34% increase over last May’s median of $1,724,917.
- Strong activity in the luxury home market drove the high average price. Two homes sold for over $20,000,000. Six total homes sold for more than $5,000,000. Twenty-seven homes sold for over $2,000,000.
- The high sale for the month closed for $26,490,700. For that sum, the new owners acquired a home with 10,500 sf of living space, 8 beds, 8 baths, 3 kitchens, along with a separate pool house with room for guests, a six car garage and a caretaker’s quarters. The property is situated on an acre across the street from the ocean in Makena. This was the highest priced home to sell for the year to date.
May Condo Sales
- Maui Realtors reported 144 condo sales in May. That is 39% lower than the 237 sold in May of 2021.
- As with homes, increased mortgage rates may be tempering demand, but inventory is also impacting sales volume. The average number of active condo listings at the end of the month from February through April averaged about 56% less than the same period of 2021.
- While demand may be lower, the limited supply continues to make for a competitive market. Of the condos sold, 31.94% sold for over asking price in May. An impressive 66.67% sold for asking or above.
- That is a lot higher than the numbers from May 2021 when 15.28% sold for over asking price and 42.68% sold for asking price or above. The number of properties selling for above asking price in May 22 is down a little from April 22. That said, the percentage selling for asking price or above is higher.
- The median price of condos sold in April is $747,000. That is 21.46% higher than last April’s median.
- The average sales price for the condos sold in April came out to $1,136,318. This is 13.68% higher than the average price in April 2021.
- Luxury condo transactions remain strong with one sale over $10,000,000, 3 over $5,000,000 and 22 sold for $1,500,000 or higher.
- The highest price condo sale for the month closed for $11,900,000. That buyer now owns a 3 bedroom, 4 bathroom condo with 2,814 square feet of living space at the Andaz Residences Wailea.
Current Market Indicators
If you are long term reader of our stats post, you will know the familiar refrain that sales are a lagging indicator. We wanted to look at just a few stats that might give a better sense of current market conditions.
As noted repeatedly in the May sales stats, inventory, or lack thereof, remains a big driver in our market. On the last day of May, there were 213 active home listings in Maui County. That is a 7.5% increase from 198 listings at the end of April. On the last day of May, there were 175 active condo listings. That is just 1.7% above the 172 on the last day of April.
Nationally, the inventory of homes for sale rose 25% from April to May. Maui is clearly lagging behind the mainland when it comes to changes in inventory. That said, as noted in Market Musings X, any increase in inventory on Maui at this time of the year goes against pre-Covid trends. Inventory dropped on Maui between the last day of April and the last day of May in 2017, 2018 and 2019.
We also continue to track the number of properties going under contract within the first ten days of coming to market. Of the 55 homes and condos listed between May 18th-25th, 17 or 34.54% of the new listings went under contract within the first ten days of going on the market. That is a slight decline from the 35.55% between May 7th and 14th. It is down substantially from the 56% we reported in mid-February. For comparison to Pre-Covid days, 23.8% of listings that went to market between May 18th-May 25th, 2019 went under contract in the first ten days.
The one last metric we are trying to track is price reductions. The number of active home listings with price reductions is sitting at 29.5%. This is down from May 24th when 33% of active home listings reduced their price at least once. Of the active condo listings, 20.9% reduced their price one or more times. That is up from the 18.2% of active condo listings that reduced their price on May 24th.
A Couple of Thoughts on The Numbers
One number that stood out is the decrease in the number of price reductions among the active home listings . Prior to calculating the numbers, I expected to see an increase in price reductions for active home listings. Anecdotally, it seems like there are more price decreases. So why the lower number? Without doing a deep dig into the recent pending sales, I suspect that price reductions are proving to be effective. People overshooting the market initially are able to find the market via price adjustments.
Overall, the numbers above point to a market that while cooler than this winter, still remains resilient. The shifts in the market are gradual and not drastic. Inventory numbers well below normal combine with existing levels of demand to create conditions that are still more competitive than a “normal” Maui market.
While the numbers show some of the variability in the market between homes and condos, they don’t show the variability by geography and price point. On May 31st, I went through the end of the month inventory for homes and condos and broke it down by geography and price point. The purpose of the exercise wasn’t so much for this post but to create a baseline for future analysis trying to track potential shifts in inventory and demand at a district and price point level. That said, there is pretty clearly some variability evident. This post is getting a little long already so I will save my findings for the next edition of the Musings. The one immediate takeaway is that sellers will likely want to talk to their Realtor about conditions specific to their segment of the market when determining pricing and negotiation strategies.
The Obligatory Maui Photo Tweet to Brighten This Blog Post
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Contact the Maui Real Estate Team if you have any questions about this post or if you need assistance buying or selling Maui Real Estate. We look forward to hearing from you and discussing your real estate needs.
We made it to Volume 10! Our efforts to keep you abreast of the Maui Real Estate Market in these dynamic times continue. As usual, this is something of a grab bag hitting on a variety of topics. We look at some of the recent data points and outlooks for the National Real Estate market. This post also looks at some of the latest numbers regarding inventory, price reductions and the speed at which properties go pending on Maui. Finally, we provide some thoughts for sellers as the subtle shift in market dynamics continues.
A Smattering of National Real Estate Perspectives
We tend to be data geeks at the Maui Real Estate Team. That means we consume a steady diet of information on the local and national real estate market. With change in the air in the real estate market, the tweets, articles and opinions are coming fast and furious. This is a curation of some of the recent articles and tweets we read we thought were worth sharing.
- Redfin came out with their latest look at the second home market a little over ten days ago. It’s worth reading past the headline. Demand for second homes in April is down substantially from its peak during the second half of 2020 and 2021. That said, it is still 9.8% above pre-Covid levels. When looking at articles talking about changes in the market, it is particularly helpful when Pre-Covid numbers are provided for context.
- This is an interesting tweet on a paper highlighting the role of remote work in the role of price increases. This clearly impacted the local market as higher income buyers working remotely entered the Maui market.
- New construction home sales are feeling the impact of rising interest rates across the country. Although John Burns points out in his tweet below that they are still above pre-pandemic levels. Locally, Maui has relatively limited new development occurring at this time. Hoku’ula in Hali’imaile is doing site work and taking reservations on market based housing. Anuhea at Kehalani is partially completed. Some phases are actively in construction with the next phase likely to come to market in late summer or fall. La’i Loa in Wailea is fully reserved with construction ongoing.
- Inventory is increasing nationally. The 8% increase this week is substantial, but not unprecedented. Mike Simonsen’s whole thread is worth a read if you are on Twitter.
- As dynamics in the market shift, the tendency is to look at past markets to find analogues to the current market. Bill McBride from the Calculated Risk Blog argues that we shouldn’t be looking at the last real estate bust for comparisons. He makes a pretty compelling case that the late 70s and early 80s is a more relevant comparison to the current market. Baby Boomer demand then is similar to Millennial demand now. The Federal Reserve found itself in a similar position due to inflationary pressure. While mortgage rates now are still well below rates from that point in time, the year over year change in rates is similar. Will we see similar pricing dynamics?
- I wanted to include this last tweet from one of my favorite real estate follows on twitter to wrap this section up. It points to one of the values of keeping an eye on statistics. I’ve noted quite a few headlines that create a different impression of the market than what they underlying statistics show. Keeping a closer eye on and understanding the stats helps to strip out some of the hyperbole.
Recent Data Points From the Maui Market
The Maui market is influenced by trends in the national market, but it doesn’t necessarily follow in lockstep with national dynamics. The high volume of second home sales and being a literal island can create different market dynamics. Here are some of the latest numbers on local inventory, price reductions and pending sales.
Overall Inventory
As of May 24th, there are 198 active home listings on the Maui MLS. At the end of April, there were 176. That is a modest 12.5% increase in active home listings for the month to date. For a little perspective, it is worth taking a look at pre-Covid numbers. In the end of May in 2019, there were 445 active listings. We are still less than half of pre-Covid inventory.
Condo inventory remains particularly limited. As of the 24th, there are 160 active condo listings in Maui County. There were 158 at the end of April. Inventory gains for the month to date remain negligible. For further context, there were 487 active listings at the end of April 2019. We are at less than a 1/3 of 2019 inventory.
Clearly, we aren’t seeing the same type of inventory increase that the mainland market is seeing. That said, Maui traditionally doesn’t see the big inventory bump that the National market sees in the late spring. Inventory decreased from the end of April to the end of May in 2017, 2018 and 2019. This modest bump in inventory for homes and condos for the month to date goes against pre-Covid trends. The Maui market’s seasonality may be masking a shift on inventory.
Pending Sales on New Listings
We’ve looked at the percentage of homes going under contract within the first ten days of going to market in Musings II, Musings XIII and Musings IX. In mid February, 56% of new listings went under contract in 10 days or less. In early April, that number decreased to 46%. By mid-late April, the number was down to 43%. Of the 76 listings that came to market between May 7th and May 14th, 27 went under contract within 10 days. That calculates to 35.5%. To give a pre-covid reference point, 21.7% of new listings went under contract in 10 days or less for properties listed between May 7th-May 14th 2019.
Price Reductions
In our last edition of the musings, I started tracking price reductions on Maui. I looked at the percentage of active home and condo listings that reduced the price below their original asking price. On May 24th, 33% of active home listings reduced their price one or more times. That is actually down from May 5th when 37% of active home listings reduced their price one or more time. On May 24th, 18.2% of all active condo listings reduced their price one or more times. That is up from May 5th when 15% reduced their price one or more times.
Thoughts for Sellers
The good news is that by all metrics this is still a seller’s market. Inventory remains well below normal and there is still demand. That said, the dynamics now are not the same that they were six months ago or even three months ago. The “list the property, set a weekend open house schedule and offers due by Monday routine” is not quite the norm that it used to be. Here are some thoughts for prospective sellers entering the market.
Pricing
It’s been a forgiving market when it came to pricing a property over the last 14 plus months. In some cases, buyers set the pricing. Seemingly well priced properties would be inundated with offers and prices would soar well over asking. In other cases, sellers priced their property at levels that seemed really high based on recent comparable sales. They would still get their number. Sometimes, that would happen quickly and others it would just be a matter of the market catching up. That said, the margin for error on pricing appears to be shrinking. As market conditions become more variable, some of the more aggressive sellers are not getting the market feedback that they hoped for.
Sellers should work closely with their Realtor to look at both recent comparable sales and the level of activity in their segment of the market. There is a lot of heterogeneity in the market so pricing a home can be a challenge. If the market is not responding to your price, you may need to adjust pricing a little more quickly.
Negotiation
Price wasn’t the only area where sellers had a lot of leverage in this more recent market cycle. Sellers rebuffed requests for repairs, tightened timelines and sometimes negotiated post-closing occupancy without buyers batting an eye lash. A high number of back up offers only strengthened sellers hands. Buyers with FOMO (fear of missing out) conceded to seller demands far more often than not.
Anecdotally, I have heard stories of sellers overplaying their hand during negotiations in the current market. While sellers still have some leverage, more buyers are willing to walk away. Concessions, repairs and other negotiations are likely to become more commonplace if the market continues to adjust.
Days on Market
As the numbers above indicate, the number of homes going under contract right after listing is steadily decreasing. We are also seeing more price adjustments compared to earlier in the spring. That of course means that days on market is increasing. It may take a little longer to sell in this market. If your circumstances dictate that you need to sell sooner than later, adjusting to market feedback is important.
A Little Maui Beauty
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Contact The Maui Real Estate Team with questions, feedback or if you need assistance buying or selling property on Maui. We look forward to hearing from you.