Inventory hits new low for Maui homes
Median of $895,000 the second highest on record for RAM
Inventory on Maui for single-family homes continues to dry up with February plummeting to a new historic low, according to a recent report.
Last month set a record low for single-family inventory at 214 units, according to data from the Realtors Association of Maui, which began compiling inventory numbers in 2010. The total — a 58.6 percent drop — is fewer than half of the 517 that were available the year before.
Meanwhile, median sales prices for single-family homes remained high at $895,000 — a 19.8 percent spike year over year. February’s median is the second highest on record for RAM, which has kept track of median prices back to 1993.
January’s single-family home median sales prices hit an all-time record high at $980,000. The previous record of $867,500 was set in October. December and November were just shy of that mark at $859,000 and $852,500, respectively.
Inventory, the number of properties available for sale in active status at the end of a given month, has been dwindling month over month since the same time last year. January set the previous record low at 271, a 47 percent drop year over year.
In fact, inventory had already been dropping in 2019 — where record low months were in the 400-unit range.
In February, new listings dropped roughly 18 percent to 101.
Buyers are continuing to scoop up single-family homes fast, with days on the market dropping 12 percent year over year to 117 and pending sales increasing 62.5 percent to 143.
There were 101 closed sales for single-family homes, a 21.7 percent increase year over year.
One single-family home sold for $5.4 million in Olowalu in February. Other high-priced houses included six Wailea/Makena units with a median price of $4 million, nine Kaanapali units with a median of $3.6 million and one in Lahaina selling for $3 million.
The most affordable single-family homes on Maui were in Kahului, where seven units sold at a median of $695,000, while one in Hana sold for $700,000 and four in Makawao/Olinda/Haliimaile that went with a median of $787,000.
Maui condominiums were a little easier to find in February, however.
Inventory for condos only dropped 4 percent year over year to 503 units.
All the while median sales prices stayed about the same, with a 0.6 percent increase year over year to $556,990.
New listings increased about 16 percent year over year to 187.
Pending sales jumped 76.3 percent year over year to 231, and closed sales increased 23.9 percent to 166.
Days on the market until sale increased 6.9 percent to 139.
The highest prices for condos were in Wailea/Makena, where 18 units sold with a median of $1.41 million; Kapakalua, where 10 units sold with a median of $1.12 million; and Kaanapali, where 16 units sold with a median of $747,500.
The most affordable condos were in Central Maui – two units with a median of $351,000 sold in Kahului, five units with a median of $457,500 sold in Maalaea and 13 units with a median of $482,500 sold in Wailuku.
Mortgage interest rates inched a bit higher in February but remain below February 2020 levels, according to the RAM report.
“Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, ‘While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year,'” the report said.
With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability, the report added.
* Kehaulani Cerizo can be reached at email@example.com.