A sign advertises a house for sale in a Kahului neighborhood on March 7. The Maui News / MELISSA TANJI photo

A shortage of homes available on the market continues to amplify the demand for Maui real estate, with economists saying that bidding wars are common even as home prices continue to rise.

According to the Realtors Association of Maui, the median sales price in February increased 18.3 percent to $1,058,500 for single-family homes compared to $895,000 reported in the same month in 2021 and $747,150 in 2020. Condominiums saw a 31.2 percent increase in February to $730,500 from $556,990 in February 2021.

According to Chief Economist Lawrence Yun at the National Association of Realtors, much of the current housing supply is within the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, “leaving many first-time buyers behind.”

The number of properties that were newly listed on the market in February decreased 6.7 percent for single-family homes compared to last year and 17.3 percent for condominium homes. Pending sales also decreased 27 percent and 31 percent for single-family homes and condos, respectively.

February of this year had fewer new listings for single-family homes than in past years with 112, compared with 120 in February 2021 and 123 in February 2020, according to the Realtors Association of Maui’s report released last week.

For condos, there were 172 new listings in February, which is down from 208 in February 2021, but up from 161 in February 2020, according to the report.

Average days on the market until sale increased slightly (0.9 percent) from 117 days in February 2021 to 118 days last month for single-family homes. Condos spent much less time on the market, with average days decreasing 46.8 percent from 139 in February 2021 to 74 last month.

Inventory of homes and condos for sale has been at a gradual decline since 2011, according to RAM data.

Most recently, statistics show that inventory on Maui in February was lower than in previous years — the number of single-family homes for sale dropped 25.6 percent from 254 in February 2021 to 189 this year, and condos saw a whopping 71.3 percent decline in inventory from 530 in February 2021 to 152 this year.

For local residents and homebuyers, it’s of no surprise that affordability continues to plummet, with the housing affordability index reporting a score of 48 in February of this year for single-family homes, lower than the score of 57 in 2021 and 65 in 2020 — a higher number means greater affordability.

Mortgage rates across the U.S. have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4 percent in February, the highest level since May 2019.

There were 86 closed sales on single-family homes in February on Maui, which is down nearly 15 percent from February 2021.

In February, most single-family homes were sold in Wailuku (19 units) and Kihei (18), with a median sales price of $880,000 and $1,182,500, respectively. In Haiku, 13 units were sold with a median sales price of $1.6 million while 11 were sold in Kahului at a median price of $988,000.

The median sales prices for single-family homes ranged from a low of $805,000 in Makawao/Olinda/Haliimaile to a high of $9.2 million in Wailea/Makena.

For condos, most units sold in Kihei (55) and Napili/Kahana/Honokowai, with a median sales price of $698,000 and $647,500, respectively. In Kaanapali, 14 units sold with a median price of $910,000, and in Wailea/Makena, 13 units sold with a median price of $1,525,000.

“Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher,” the report said.

* Dakota Grossman can be reached at dgrossman@mauinews.com.