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Island home prices dip in September as purchases spike

83 properties have sales pending, up 26 percent from September 2018

Sales of single-family homes in September nearly doubled over last year while median prices dipped slightly and the inventory fell to its lowest level this year, according to Realtors Association of Maui data released last week.

There were 118 closed home sales, up 47.5 percent from last year and up 18 percent from August. It appears sales will remain strong in the coming months with pending sales, a count of properties on which offers have been accepted, up 26 percent in September year over year with 83 properties.

Meanwhile, median prices for a home dipped 4.6 percent to $719,718 in September compared to 2018, and was down $105,532 from August’s historic high of $825,250. Median prices, the middle number in a series, is often a better reflection of the market than the average price, which can skewed by a few sales high or low.

The inventory of homes for sale (441) fell to its lowest point in a year in September, continuing a decline that began six months ago. Inventory was 13 percent lower than last September.

Condo inventories also were at their lowest point in a year in September at 462 units, down 18.5 percent from 2018.

Some components in the condo market differed from the single-family home market. The median sales price jumped 9.6 percent to $540,000 in September and was up nearly $50,000 from August’s median price. Condo sales were down 3.3 percent to 119 units in September.

Condo and home sellers were getting 98 percent of their asking price in September, the highest percentage in a year for both sectors. The affordability index was at 47 for homes, which means the median household income is only 47 percent of what is needed to qualify for a median-priced home. The index was 62 for condos.

In the robust home sales market, Wailuku logged 43 sales, by far the most of any region, with a median sales price of $706,500. Kihei was next with 12 sales ($803,750 median price), followed by Kahului with 10 ($657,500). Wailea/Makena logged only one sale in September, but that was for $10,872,129.

Kihei with 39 sales ($446,400 median price) led condos. Napili/Kahana/Honokowai followed with 21 sales ($460,000) and Kaanapali with 17 sales ($830,000).

For the first nine months of the year, the median sales price for homes was $745,845, up 6.5 percent from a year ago, and for condos, $518,000, up 4.4 percent.

Sales for the first three quarters were down year over year 4.1 percent for homes on 844 sales, and 5.7 percent for condos on 1,208 sales.

The data can be found on the Realtors of Maui website at www.ramaui.com.

* Lee Imada can be reached at leeimada@mauinews.com.