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New year brings new high prices for Maui homes

Median sales price reaches $1.16 million

A sold sign is shown in front of a home on Sept. 20. Average long-term U.S. mortgage rates jumped last week to their highest level in more than two years on Feb. 10, potentially pushing some homebuyers out of the market as consumers get squeezed by higher costs for just about everything. AP photo

The new year began with a new record for Maui real estate as the median price for single-family homes hit $1.16 million in January, recent real estate statistics show.

The previous record high was in June when the median price for a single-family home was at $1.105 million, according to a Maui market update report by Coldwell Banker Island Properties, which used data from the Realtors Association of Maui.

Single-family home median prices in January were up 18.1 percent compared to $980,000 in January 2021, and “the price for single-family homes continues to increase at a consistent rate,” the report said.

In January 2020, the median sales price for a single-family home was $777,500, statistics show.

Even with new homes coming on the market at places such as Anuhea at Kehalani in Wailuku, “supply remains a perpetual problem,” the report said.

January of this year had the least number of single-family homes for sale at the end of the month with 187, compared with 286 in 2021 and 511 in 2020, according to the Realtors Association of Maui’s January report.

New listings of single-family homes increased slightly to 116 in January, up 4.5 percent increase from the 111 seen in January 2021, while closed sales declined to 92, down 8.9 percent from the 101 closed sales in January 2021.

In January, most single-family homes were sold in Wailuku with 15, with a median sales price of $845,650. In Kihei, 14 homes sold with a median sales price of nearly $1.3 million, while 13 sold in the Makawao/Olinda/Haliimaile area with a median sales price of $870,000 and 10 sold in Kahului with a median sales price of $857,000.

The median sales prices for single-family homes went from a low of $750,000 in Pukalani to a high of nearly $4.1 million in Kapalua.

Affordability of homes continues to decline as inflation, soaring sales prices and surging mortgage interest rates reduces purchasing power, the association reported.

“The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market,” the report said.

On Thursday, long-term U.S. mortgage rates for 30-year loans jumped to 3.92 percent, the highest since May 2019 when it reached 3.99 percent, the Associated Press reported.

Condominiums, meanwhile, also saw a marked increase in median sales prices, hitting $707,500 in January, a 26.3 percent increase over the $560,000 median sales prices seen in January 2021, according to the Realtors Association of Maui report.

While there were fewer new listings last month with 174 — a 13.4 percent decline from the 201 new listings in January 2021 — closed sales last month jumped to 155, a 34.8 percent increase over the 115 closed sales in January 2021.

“With a little help from the snowbirds and holiday visitors, condos in Maui’s resort areas sold as fast as they were listed,” Coldwell Banker’s report said.

Condominiums in Kihei, Maalaea and Lahaina all sold in fewer than 75 days, Coldwell Banker said. Demand was also strong for Central Maui, where condos sold collectively in 67 days.

Kihei’s condo market was the hottest, with 59 units selling with a median sales price of $652,500, followed by the Napili/Kahana/Honokowai area where 33 units sold with a median sales price of $667,000. Another 15 condos sold in Kaanapali with a median sales price of $1.6 million, while 10 sold in the Wailea/Makena area with a median price of nearly $1.7 million.

* Melissa Tanji can be reached at mtanji@mauinews.com.

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