County real estate prices closing in on prerecession highs
Median home price tops $700,000 for third time this year
Median single-family home prices in Maui County hit $700,000 or more for the third time this year in June when the midpoint price at which homes sold was $740,000, according to statistics released Tuesday by the Realtors Association of Maui.
Median home prices topped $700,000 only one month last year (in December, when the price was $700,500). And, before that, Maui County median home prices had not gone north of $700,000 since September 2006, the association’s historic data show.
In 2005 and 2006, just a few years before the subprime mortgage crisis in December 2007 and the collapse of housing markets and the Great Recession that followed, Maui County’s median home prices topped $700,000 in 11 of 24 months. The high points were May 2005 and July 2006 when home prices soared to $780,000.
Returning to the present, the volume of single-family home sales reached 120 in June, the highest month for sales since 129 homes exchanged hands in July 2015. The 120 home sales in June were 21.2 percent higher than the same month last year, and they were 26.3 percent higher than just a month earlier in May, the association’s statistics show.
“There is strong demand for homebuying, emphasized by higher prices and multiple offers on homes for sale in many submarkets,” the association’s commentary on June statistics says. “As has been the case for month after month — and now year after year — low inventory is the primary culprit for any sales malaise, rather than lack of offers.”
While demand for homeownership remains strong, “housing starts have been drifting lower, and some are beginning to worry that a more serious housing shortage could be in the cards if new construction and building permit applications continue to come in lower in year-over-year comparisons while demand remains high.”
The association’s housing affordability index shows that Maui County’s median household income is only 55 percent of what is necessary to qualify for a median-priced home under prevailing interest rates. For condos, the household income is 82 percent of what it would take to qualify.
Looking at home sales volume in regions, Central Maui recorded the most sales, 39, up 14.7 percent from June of last year. The median price for a Central Maui home last month was $633,990, up 8.2 percent from a year ago. The second most sales were reported in Haiku, where 13 homes went to buyers for a median price of $760,000. And there were double-digit sales in Kula/Ulupalakua/Kanaio (11), Kihei (10) and Makawao/Olinda/ Haliimaile (10). The median sales prices in those regions were, respectively, $840,000 (down 27.9 percent from a year ago), $741,450 (up 24.1 percent) and $685,000 (down 20.6 percent).
Year-to-date single-family home sales data show less volatility. The number of home sales for the first six months of the year was 546, up just 2 percent compared with the same period last year. And, the median sales price of $705,000 for the first half of the year was up 12 percent from a year ago. The total dollar volume for homes was up 18 percent to $565.8 million.
By region for the first half of the year, Central Maui pulled in 30.6 percent of total home sales in Maui County. The year-to-date median home price in Central Maui was $589,000, up 7 percent. Kihei had the second most sales, 88, level with last year; and Kula/Ulupalakua/Haliimaile was third with 60 sales, up 50 percent from last year. Kihei’s median sale price was $763,750, up 24 percent; and the Kula/Ulupalakua/Haliimaile region saw homes sell for a median of $833,500, up 25 percent.
The highest median price for a home was in Wailea/Makena where 17 homes sold in the first half of the year for a median of $3.25 million. The second-highest median was in Kapalua where two homes exchanged hands for a median of $2.98 million, up 18 percent. The median price topped $1 million in four other regions: Lahaina, $1.4 million, up 83 percent; Maui Meadows, $1.3 million, up 14 percent; Kaanapali, $1.3 million, down 23 percent; and Hana, $1.15 million, up 164 percent.
The lowest median price for the year’s first half was on Lanai where homes sold for a median of $402,500, down 13 percent. It was followed by Molokai where the median was $442,500, up 12 percent.
For the first half of the year, condominium sales were up 10 percent overall to 713 units. The median sales price was $475,000, up 12 percent. The total dollar volume for condos was up 18 percent to $484.3 million.
Again, Kihei dominated the condo sales market countywide in the half year with 267 sales, up 32 percent from last year. Kihei took 37.4 percent of all condo sales in the county. The median price for a condo in the region was $383,000, up 16 percent. The runner-up for condo sales was Napili/Kahana/Honokowai where 121 units sold, down 13 percent. The median price for a condo there was $420,000, virtually flat with a year ago.
The highest-priced condos were in Wailea/Makena where 82 units sold (up 55 percent) for a median price of $1,017,500. The least-expensive condos were on Molokai where eight units sold (flat) for a median price of $110,000.
Looking at available inventory in June, there were 716 single-family homes on the market, 4.6 percent more than the 12-month average of 684.4; and there were 867 condos available in June, 8.3 percent less than the 12-month average of 945.5.
Of the 1,089 homes sold in the immediate past 12 months, 9.7 percent were short sales or foreclosures; and of the 1,377 condos sold, 5.6 percent were similarly distressed.
In June, the percentage of listing price received by sellers was 96.8 percent for homes and 96.7 percent for condominiums.
For the full statistical report, go to www.ramaui.com.
* Brian Perry can be reached at email@example.com.