Single-family home prices drop 10.1%

Maui condo prices rise 15.4 percent in March over same month last year

The median price of a single-family home in Maui County in March fell 10.1 percent compared with March 2017 to $680,000 — still well above an affordable price for most island residents, but it’s the first time since June 2014 that the monthly median home price dropped by double digits.

While it’s too early to tell if the month-over-month decline is an aberration or the beginning of a trend for single-family homes, the Realtors Association of Maui remained upbeat in its monthly assessment.

Its report on March statistics says new real estate activity has been relatively slow in the first quarter of 2018, but “housing is proving its resiliency in a consistently improving economy.”

“Despite there being fewer homes for sale, buyer demand has remained strong enough to keep prices on the rise, which should continue for the foreseeable future,” its narrative says.

Single-family home median prices skidded from $756,000, a record high in March 2017, to $680,000 last month. The 10.1 percent drop is the most since June 2014 when the median home sales price fell 11.5 percent to $530,000 from $599,000 in June 2013.

March’s median price ranks as the fourth lowest in the past 12 months, but still ahead of $650,000 in September, which was a 2.3 percent decline; $668,675 in October, a 5.7 percent increase from the previous year; and $673,000 in April, a 1.2 percent increase.

The high-water mark for single-family homes in the past 12 months was $740,000 in June when prices were up 12.3 percent.

The Maui County housing affordability index was up 8.7 percent to 50 in March compared with the same month last year. The 12-month average is 51, a drop of 12.1 percent. (The index measures housing affordability. An index of 120 means the median household income is 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means more affordability.)

The inventory for homes for sale was 487 in March, down 19.8 percent from the same month in 2017. The 12-month average of homes available for purchase was 555, down 5.8 percent.

The supply of new listings for single-family homes in March plummeted 33.3 percent to 120, compared with the same month last year. Still, the 12-month average for new listings was up slightly at 0.8 percent. Pending sales for the month were down 2.3 percent to 129, while the 12-month average for sales awaiting closing was up 7.9 percent to 96.

Closed sales in March slipped 4.8 percent to 100 for single-family homes, while the 12-month average was 96, an increase of 7.9 percent.

Home sellers were getting 97.7 percent of their list prices in March, up 0.8 percent, while the average for the year was 96.8 percent, up 0.3 percent.

Looking at single-family sales for the year’s first quarter, 284 homes exchanged hands, a 21.4 percent increase over the first three months of 2017. Median sales prices for the period were down 1.8 percent to $684,350 while total dollar sales volume was up 27.4 percent to $321.1 million.

First-quarter home sales by region were:

• 62 in Wailuku, a 55 percent increase in sales volume, with median prices climbing 14.4 percent to $623,667.

• 47 in Kahului, a 38.2 percent increase, with prices up 15.3 percent to $684,000.

• 43 in Kihei, a 7.5 percent increase, with prices down 11 percent to $670,000.

• 23 in Haiku, a 27.8 percent increase, with prices down 2.5 percent to $765,000.

• 20 in Kula-Ulupalakua-Kanaio, a 5.3 percent increase, with prices up 16.8 percent to $987,000.

• 16 in Lahaina, a 60 percent increase, with prices up 21.6 percent to $1.1 million.

• 13 in Makawao-Olinda-Haliimaile, a 44.4 percent increase, with prices down 8.7 percent to $575,000.

• 10 in Kaanapali, a 42.9 percent increase, with prices up 45.8 percent to $1.9 million.

• 10 in Wailea-Makena, a 9.1 percent decrease, with prices up 17.6 percent to $3.8 million.

• 9 in Pukalani, a 30.8 percent decrease, with prices up 1.2 percent to $658,000.

The largest percentage price drop came in Hana where prices fell 65.5 percent to $760,000 (from $2.2 million). There were seven home sales in Hana in the first quarter, an increase in sales volume of 250 percent. The second largest decline in home prices was in Maui Meadows where median sales fell 35.4 percent to $937,500 with six sales, a 50 percent increase in volume.

Turning to condominiums in March, there were 127 sales for the month, a 4.5 percent decrease in volume compared with the same month last year. However, the median price of a condo for the month rose 15.4 percent to $450,000.

The affordability index for condos was 76 in March, a drop of 13.6 percent from the same month last year. The 12-month average for condo affordability was 78, a decrease of 14.3 percent.

The inventory of condos for sale stood at 614 in March, down 25.5 percent, while the 12-month average for monthly inventory was at 685, down 19.5 percent.

In the first quarter, 371 condos exchanged hands, an 8.5 percent increase in sales volume. The median sales price slipped slightly, 0.5 percent, to $475,000.

Condo sales by region were:

• 138 in Kihei, a 3.8 percent increase in sales volume, with median sales prices up 4.6 percent to $422,500.

• 60 in Wailea-Makena, a 22.4 percent increase, with prices down 15.3 percent to $1 million.

• 56 in Napili-Kahana-Honokowai, a 1.8 percent increase, with prices up 26.2 percent to $435,250.

• 36 in Wailuku, a 28.6 percent increase, with prices down 19.8 percent (the largest percentage drop) to $357,000.

• 35 in Kaanapali, a 66.7 percent increase, with prices up 17.3 percent to $880,000.

• 15 in Lahaina, a 40 percent decrease, with prices down 6.5 percent to $435,000.

• 11 in Maalaea, an 8.3 percent decrease, with prices up 11.7 percent to $388,000.

• 8 in Kapalua, a 60 percent increase, with prices up 39.7 percent (the largest percentage gain for condos).

To see the association’s market statistics, go to www.ramaui.com.

* Brian Perry can be reached at bperry@mauinews.com.

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