Median housing prices for Maui are on the rise
Homes, condos soaring with double-digit hikes
Median sales prices for single-family homes and condominiums jumped in double-digit increases in September — up 16 percent to $754,248 for homes and up 18.2 percent to $501,000 for condos — both compared with the same month last year, according to statistics released last week by the Realtors Association of Maui.
September marked the fourth straight month of double-digit increases for condos: up 19.8 percent to $515,000 in June, up 15.6 percent to $508,825 in July and up 26.2 percent to $504,998 in August. Over 12 months ending in September, median sales prices have increased 10.6 percent to $485,000, the association reported.
There’s been more variability in single-family home median prices, ranging from a decrease of 10.1 percent to $680,000 in March to the 16 percent increase in September. Overall, home prices have grown 0.9 percent for the year through September.
The association’s report contained a cautionary note. It said: “Although residential real estate should continue along a mostly positive line for the rest of the year, rising prices and interest rates coupled with salary stagnation and a generational trend toward home purchase delay or even disinterest could create an environment for declining sales.”
Maui Realtors Association President Gina Duncan said that even with Maui’s tight inventory market, “there is still a demand for housing locally and from the Mainland United States. We see some international interest and expect more during high season, however not as strong as on Oahu.
“Even though one would think this would make a strong sellers market, buyers are savvy and are still cautious,” Duncan said. “Homes that are overpriced tend not to get shown even if seller is flexible, so I would caution against overpricing by a seller to ‘test the market,’ and as much as possible to have the home ‘show ready’ with detailed cleaning, repairs and staging done prior to listing.”
Duncan said Maui’s high single-family home prices tend to impact condo sales because people turn to condo living as less-expensive option.
An overview of key metrics for Maui’s condominium market shows the high-demand, low-supply drivers fueling the higher prices that owners can demand and receive from buyers. In September, sellers were getting 98.1 percent of their list price, up 1.7 percentage points; for the year through September, that metric was up 0.7 percentage point to 97.3 percent.
The housing affordability index for condominiums dropped 21.2 percent to 67 in September, and it fell 16.3 percent to 67 for the first nine months. (The index shows the amount a Maui County household earning median income would have toward what would be needed to qualify for a median-priced unit under prevailing interest rates. A higher number means greater affordability.)
The inventory of condos for sale decreased 22.4 percent to 523 in September. The month’s supply of condos was down 27.8 percent to 3.9. New condo listings decreased 25.2 percent to 113 for the month and down 6.5 percent to 1,405 for the year’s first nine months.
The volume of condos sales in September was down nearly 4 percent to 121. Most of the sales were in Kihei (46, or 38 percent of total condo sales in September), Napili-Kahana-Honokowai (18, or 14.9 percent), Wailuku (15, or 12.4 percent), Kaanapali (14, or 11.6 percent) and Wailea-Makena (13, or 10.7 percent).
The volume of condo sales for the year’s first nine months was up 21.6 percent to 1,277; and January-through-September median prices for condos were up 11.4 percent to $499,000.
Kihei led the way with 472 condo sales through September, a 16.8 percent increase in sales volume. Median condo prices in Kihei were up 7.4 percent to $407,000 for the year’s first three quarters.
The runner-up region for condo sales volume was Napili-Kahana-Honokowai with 193 sales, up 17 percent; median prices for the West Maui region increased 4.9 percent to $430,000.
The luxury resort area of Wailea-Makena had the county’s third most condo sales — 179, a 70.5 percent increase in sales volume. However, the median price remained unchanged at $1.15 million.
Kaanapali reported 133 condo sales over nine months, a 49.4 percent jump in sales volume. The area’s median price for condos rose 4.5 percent to $815,000.
Wailuku recorded 118 condo sales, up 25.5 percent, and its median price increased 8.3 percent to $410,000.
The key metrics for September single-family home real estate activity also showed the high demand and short supply of housing, but the percentages for changes were not as high as those for condos.
The inventory of homes for sale fell 16.7 percent to 473 for the month, and the month’s supply of inventory was down 13.3 percent to 5.2.
The affordability index for single-family homes dropped 20 percent to 44 for the month and was off 5.9 percent to 48 for the first nine months of the year.
Home sellers were getting 96.6 percent of their list price, up 0.2 percentage point for the month; and 96.8 percent, up 0.2 percentage point for the year.
The volume of home sales in September was down 1.2 percent to 80 in September, with most properties exchanging hands in Wailuku (24, 30 percent), Haiku (nine, 11.3 percent), Kihei (nine, 11.3 percent), Makawao-Olinda-Haliimaile (seven, 8.8 percent), Kahului (six, 7.5 percent) and Kula-Ulupalakua-Kanaio (five, 6.3 percent).
The volume of home sales for the year’s first three quarters was 879 sales countywide, up 6.4 percent. The median sales price remained unchanged at $700,000.
Wailuku recorded the most homes exchanging hands, 198, a 29.4 percent increase in sales volume for the year to September. The median price for a home in Wailuku rose 5.7 percent to $650,000. Kihei had 134 sales, a 2.9 percent decline compared with a year ago. Kihei’s median home price slid down 2.8 percent to $687,013.
Kahului reported 111 sales, down 0.9 percent. Its median price grew 13.9 percent to $680,000. Haiku had 68 home sales through September, a 6.3 percent increase. Its midway price increased 10.5 percent to $822,500.
The county’s most expensive homes were in Kapalua, where eight residences exchanged hands for a median price of $2.84 million, an increase of 14.2 percent. One property sold in Maalaea for $2 million. Kaanapali had the most sales among luxury areas with 29, a 61.1 percent increase in sales volume for the year’s first nine months. Kaanapali’s median home price rose 4.4 percent to $1.77 million.
Wailea-Makena reported 27 homes sold for a median price of $1.8 million, a drop of 36.2 percent from the $2.82 million figure set in region last year.
Kula-Ulupalakua-Kanaio, Makawao-Olinda-Haliimaile and Pukalani recorded year-to-date home sales of 53, 43 and 31, respectively. Their sales volumes were down 17.2 percent, up 7.5 percent and down 16.2 percent, respectively, compared with last year.
The median sales price of a home was $975,000 (up 14.8 percent) in Kula-Ulupalakua-Kanaio, $610,000 (down 3.9 percent) in Makawao-Olinda-Haliimaile and $725,000 (up 7.4 percent) in Pukalani.
The county’s least expensive homes were found on Lanai and Molokai, where the median prices were $475,000 (up 25 percent) and $350,000 (down 0.6 percent), respectively. On Lanai, 15 homes were sold, down 16.7 percent; and on Molokai, 25 homes exchanged hands, up 31.6 percent.
For the full report, go to www.ramaui.com/wp-content/uploads/2018/10/RAM-Stats-September-2018.pdf.
* Brian Perry can be reached at email@example.com.