Better late than never. September proved to be a busy month for me, which made it hard to get around to the monthly market update for August. Two well-received listings and a couple of buyers meant more time showing property and less blogging. While my experience would suggest an uptick in real estate activity, one man’s experience doesn’t make the market. I have plenty of quiet months when the broader market was busy.
That’s one of the reasons we do our Maui Real Estate Market Updates. We try to give buyers and sellers the numbers with some context so you can get a better sense of current market conditions. Enough about September, let’s get to the August numbers.
August Market Activity
The tables below look at August 2024 new listings, new pending sales, and closed transactions. Previous August numbers are provided for context. It is worth remembering that August 2023 market activity decreased due to the tragic fires in Lahaina and Upcountry.
| August 24 | August 23 | August 22 | August 21 | August 20 | August 17-19 Avg | |
| Homes | 75 | 46 | 103 | 134 | 109 | 125 |
| Condos | 134 | 72 | 101 | 159 | 275 | 149 |
August new home listings increased 63% compared to August 2023. However, the number of new home listings was 40% lower than the average for August 2017-2019. August condo listings increased 86% compared to a very quiet August 2024. The new condo listings last month were still 10% lower than the average for August 2017-2019.
| August 24 | August 23 | August 22 | August 21 | August 20 | August 17-19 Avg | |
| Homes | 44 | 57 | 63 | 126 | 104 | 88 |
| Condos | 48 | 62 | 102 | 144 | 109 | 133 |
New pending home sales in August were 23% below August 2023. This was 50% of the average number of new pending August home sales between 2017 and 2019. New pending condo sales were also 23% below August 2023. This was 64% below the average number of August new pending condo sales between 2017 and 2019.
| August 24 | August 23 | August 22 | August 21 | August 20 | August 17-19 | |
| Homes | 62 | 57 | 82 | 120 | 92 | 97 |
| Condos | 64 | 97 | 104 | 187 | 111 | 125 |
The number of homes sold in August was 9% higher than August 2023. It was 36% lower than the average number of homes sold in August between 2017 and 2019. The number of condos sold was 34% below August 2023. It was 49% lower than the average number of condos sold in August 2017, 2018 and 2019.
End of August Home Inventory
The tables below show active and pending inventory by price point and community on the last day of August. Inventory from the last days of June and July are provided for context and to illustrate recent trends. Makawao and Wailuku’s pending sales continue to be boosted by longer-term developer contracts in Hoku’ula and Anuhea at Kehalani. Those developments also boost pending sales in the $1,000,000 to $1,999,999 price ranges.
| June 30, 2024 | July 31, 2024 | August 31, 2024 | ||||
| Active | Pending | Active | Pending | Active | Pending | |
| <$750,000 | 5 | 8 | 3 | 9 | 4 (+1) | 9 |
| $750,000-$999,999 | 18 | 20 | 21 | 17 | 19 (-2) | 10 (-7) |
| $1,000,000-$1,499,999 | 47 | 45 | 58 | 45 | 68 (+10) | 35 (-10) |
| $1,500,000-$1,999,999 | 56 | 26 | 59 | 28 | 60 (+1) | 31 (+3) |
| $2,000,000-$2,999,999 | 42 | 11 | 44 | 14 | 45 (+1) | 9 (-5) |
| $3,000,000-$4,999,999 | 55 | 6 | 54 | 8 | 54 | 8 |
| $5,000,000-$9,999,999 | 46 | 6 | 49 | 4 | 49 | 4 |
| $10,000,000-$19,999,999 | 19 | 0 | 19 | 1 | 21 (+2) | 1 |
| $20,000,000+ | 6 | 0 | 6 | 0 | 5 (-1) | 0 |
| Total | 294 | 122 | 313 | 126 | 325 (+12) | 107 (-19) |
| June 30, 2024 | July 31, 2024 | August 31, 2024 | ||||
| Active | Pending | Active | Pending | Active | Pending | |
| Haiku | 22 | 10 | 25 | 9 | 25 | 9 |
| Hana | 17 | 0 | 18 | 0 | 17 (-1) | 1 (+1) |
| Ka’anapali | 19 | 1 | 21 | 2 | 20 (-1) | 2 |
| Kahului | 12 | 10 | 13 | 9 | 13 | 6 (-3) |
| Kapalua | 10 | 2 | 9 | 2 | 12 (+3) | 1 (-1) |
| Kihei | 41 | 14 | 47 | 15 | 54 (+7) | 10 (-5) |
| Kula | 35 | 12 | 34 | 9 | 28 (-6) | 12 (+3) |
| Lahaina | 26 | 2 | 24 | 2 | 22 (-2) | 1 (-1) |
| Makawao | 13 | 22 | 11 | 23 | 10 (-1) | 18 (-5) |
| Napili/Kahana/Hono | 13 | 8 | 16 | 7 | 18 (+2) | 5 (-2) |
| Pukalani | 5 | 4 | 6 | 4 | 7 (+1) | 3 (-1) |
| Spreckelsville/Paia | 13 | 0 | 16 | 1 | 16 | 1 |
| Wailea | 18 | 3 | 16 | 5 | 17 (+1) | 6 (+1) |
| Wailuku | 38 | 32 | 45 | 34 | 54 (+9) | 30 (-4) |
Five Notable Things About the End of August Home Inventory
Active home listings increased 4% between the end of July and the last day of August. Pending home sales decreased 15% between the last day of July and August 31st.
Active listings increased in five of the nine price ranges we track, decreased in two, and remained unchanged in two. For the second month running, the $1,000,000 to $1,499,999 price range had the biggest increase in inventory. The two price ranges that decreased in inventory were $750,000-$999,999 and $20,000,000+.
Pending listings decreased in three price ranges, increased in one, and remained unchanged in five. The pending sales decreased notably between $750,000-$1,499,999. The $2,000,000-$2,999,999 price range also saw a decent decrease in pending sales. The $1,500,000-$1,999,999 price range was the only price point that increased pending sales.
Looking at inventory by community, active inventory increased at six price points, decreased at five and remained unchanged at three. Wailuku, Kihei, and Kapalua saw the biggest month-to-month increase in listings. Kula had the biggest decrease in active listings by a good margin.
Pending inventory increased in three communities, remained unchanged in three, and decreased in eight. Kula was the only one of the three communities where pending sales increased by more than one. Makawao and Kihei had the biggest decrease in pending sales.
End of August Condo Inventory
The tables below show active and pending condo sales by price point and community on the last days of June, July, and August.
| June 30, 2024 | July 31, 2024 | August 31, 2024 | ||||
| Active | Pending | Active | Pending | Active | Pending | |
| <$250,000 | 4 | 1 | 4 | 2 | 7 (+3) | 1 (-1) |
| $250,000-$499,999 | 41 | 5 | 47 | 9 | 62 (+15) | 8 (-1) |
| $500,000-$749,999 | 106 | 28 | 144 | 16 | 168 (+24) | 11 (-5) |
| $750,000-$999,999 | 155 | 14 | 152 | 14 | 146 (-6) | 19 (+5) |
| $1,000,000-$1,499,999 | 127 | 13 | 138 | 14 | 134 (-4) | 19 (+5) |
| $1,500,000-$1,999,999 | 66 | 11 | 69 | 9 | 61 (-8) | 6 (-3) |
| $2,000,000-$2,999,999 | 59 | 13 | 62 | 8 | 63 (+1) | 5 (-3) |
| $3,000,000-$4,999,999 | 31 | 6 | 32 | 4 | 31 (-1) | 1 (-3) |
| $5,000,000-$9,999,999 | 22 | 3 | 21 | 1 | 22 (+1) | 1 |
| $10,000,000+ | 9 | 0 | 7 | 0 | 6 (-1) | 0 |
| Totals | 620 | 94 | 676 | 77 | 700 (+24) | 71 (-6) |
| June 30, 2024 | July 31, 2024 | August 31, 2024 | ||||
| Active | Pending | Active | Pending | Active | Pending | |
| Ka’anapali | 87 | 10 | 91 | 9 | 97 (+6) | 9 |
| Kahului | 11 | 3 | 11 | 4 | 14 (+3) | 2 (-2) |
| Kapalua | 36 | 2 | 38 | 2 | 36 (-2) | 8 (+6) |
| Kihei | 234 | 36 | 262 | 24 | 257 (-5) | 23 (-1) |
| Lahaina | 4 | 0 | 6 | 0 | 7 (+1) | 0 |
| Ma’alaea | 19 | 1 | 20 | 1 | 21 (+1) | 2 (+1) |
| Napili/Kahana/Hono… | 131 | 14 | 150 | 16 | 169 (+19) | 10 (-6) |
| Pukalani | 1 | 0 | 1 | 0 | 1 | 1 (+1) |
| Wailea | 80 | 20 | 77 | 16 | 69 (-8) | 9 (-7) |
| Wailuku | 12 | 8 | 15 | 5 | 25 (+10) | 7 (+2) |
Five Notable Things About the End of August Condo Inventory.
The inventory of active condo listings increased by 3.55% between the end of July and August 31st. The number of pending condo listings decreased 7.79% between July 31st and the last day of August.
Active condo listings increased in five price ranges we track and decreased in five price ranges. The price ranges below $750,000 saw the biggest increase in active listings, and the $1,500,000 to $1,999,999 price range experienced the biggest decrease in active listings.
Of the ten condo price points we track, pending listings increased between the end of July and the last day of August in two price points, remained unchanged at two and decreased in six. Pending sales increased notably between $750,000-$1,499,999. The $500,000-$749,999 price range had a pretty big decrease in pending sales as did the $1,500,000-$1,999,999 price range.
Looking at the ten communities on island we track, active condo listings increased in six, remained unchanged in one, and decreased in three. The biggest percentage increase in inventory occurred in Wailuku. Ka’anapali and the Napili, Kahana, and Honokowai area had notable increases. The Wailea and Makena area had the most notable decrease in active inventory.
Of the ten communities we track, pending sales increased in four, remained unchanged in two, and decreased in four. Kapalua had the biggest increase in pending sales, while Wailea had the biggest decrease. It is worth noting that the last La’i Loa new developer sales closed this month. This is one of the main reasons for the decrease in Wailea pending sales.
Maui Market Observations
August Maui Real Estate Market activity followed the same trends that we have seen since late Spring. Buyer activity remains very slow, and inventory is continuing to creep up. While mortgage rates decreased through August, it didn’t entice many buyers to come off the sidelines.
Since there has been little change from this month to last, I wanted to highlight a few things in the market. There hasn’t been much news about the proposal to restrict short-term rentals at condos on the Minatoya List. The continued uncertainty has dampened demand for condos in Minatoya developments.
That said, sellers who have made significant price adjustments to find the market are getting some activity. I noted an increase in pending sales in Kapalua between the end of July and the end of August. Most of that increased activity occurs in the Kapalua Golf Villas and the Ridge at Kapalua, both Minatoya Condos. More sellers in these developments have been willing to drop their prices, and buyers are responding.
The increase in condo inventory under $500,000 on the island caught my eye. While some vacation rentals in this price range could be impacted by Minatoya, most of the listings are in developments that already restrict short-term rentals. Many of these condos are geared towards local residents. If it isn’t vacation rentals, what is the cause of the decreased activity?
While I can’t say definitively, increases in maintenance fees are likely a culprit in decreased demand. Specifically, increases in maintenance fees stemming from significant increases in insurance costs. For example, Harbor Lights in Kahului has long held the title of the island’s least expensive condos. One-bedroom units at Harbor Lights now have a monthly maintenance fee of $782.71. These higher maintenance fees are causing affordability challenges for entry-level buyers, and they make it harder for investors to make long-term rentals pencil out.
One thing I thought was worth noting about the home inventory is that there is a lot of month-to-month fluctuation among the island’s different communities. Considering the small sample sizes, much of this can be classified as random variability.
That said, there are a couple of communities where we are seeing broader trends. At the end of April, there were just 16 active home listings in Wailuku. At the end of August, that number was up to 54. At the end of May, there were 35 active home listings in Kihei. At the end of August active inventory stood at 54.
For Wailuku, the tight market in April could be attributed to higher demand, particularly from displaced Lahaina residents buying with their insurance proceeds. That specific buyer group continues to grow smaller as the year progresses. Wailuku also has a much higher percentage of inventory priced above and below Maui’s median home price. Outside of the Lahaina buyers, a number of buyers looking in this range appear to be waiting for anticipated decreases in mortgage rates this fall.
The inventory increase in Kihei can be attributed to a couple of reasons similar to Wailuku and one unique reason. First, Kihei demand was also impacted by Lahaina buyers. I think Wailuku saw more Lahaina related activity, but there were former Lahaina residents present in the Kihei area too. Second, the biggest growth in Kihei inventory was in the $1,000,000-$1,500,000 price range. As mentioned for Wailuku, this has been a slower part of the market as buyer’s struggle with affordability and wait for the forecasted rate cuts. Finally, the local Realtor Association started to allow agents to advertise some condo developments as homes. There are three new “home listings” in Hokulani Golf Villas.
In future updates, I may need to note the double counting and its impact on the Kihei stats. Please feel free to contact us if you have questions about a specific part of the market.
A Little Maui Beauty to Brighten This Post
