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How Is The Maui Market?
As you will see below, we are clearly in a buyer's market for condominiums, as months supply over six, is the threshold. There are a few events that are contributing this buyer's market.
- SB2919 is a major player in the changing condo market on Maui. The bill gives counties in Hawaii the power to regulate short-term vacation rentals, aiming to address the housing crisis by potentially reducing the number of short term rentals in Apartment zoning. This has increased Maui's condo inventory and is impacting more than just the short term rental properties.
- Higher AOAO dues that we are seeing at many of the complexes, due to the result of insurance increases since the fires. We are seeing these increases in other sates with higher risk for hurricanes, such as Florida as well.
- These two key factors along with inflation and higher interest rates are having a big impact and the consequences are yet to be seen.
The Maui stats are as follows: New Listings decreased 4.3 % for Single Family homes but increased a whopping 101.9 % for Condos. Pending Sales decreased 18.3% for Single Family homes and 34.6% for Condos. Inventory increased 10.5% for Single Family homes and 172.2% for Condos. Median Sales Price increased 2.0% to $1,297,500 for Single Family homes and 1.3% to $840,500 for Condos. Days on Market decreased 11.1% for Single Family homes but increased 25.0 percent for Condos! Months Supply of Inventory increased 14.3% for Single Family homes and rather large 221.4% increase for Condos!
US Trends:
The U.S. Real Estate Market: U.S. existing home sales fell for the second month in a row, sliding 1.9% month over month and 1.9% year over year, states the National Association of REALTORS® (NAR), with sales down in all four regions of the country. Higher borrowing costs and accelerating home prices continue to weigh on demand, pushing some prospective buyers to the sidelines and causing market activity to slump ahead of summer. Home prices have continued to climb nationwide, despite an uptick in inventory this year. Nationally, the median existing-home price reached $407,600 as of last measure, a 5.7% increase from the same period last year and a record high for the month, according to NAR. Meanwhile, total inventory heading into May stood at 1.21 million units, a 9% increase month-over-month and a 16.3% increase year-over-year, for a 3.5 month’s supply at the current sales pace.