Realtor Max Blair of Coldwell Banker Island Properties says the spawning salmon mailbox comes with the sale of the house at 548 Kaiola Street in north Kihei. The three-bedroom, two-bath, single-level home with open floor plan and ocean views is listed for $1.169 million, which has been roughly the median sales price of a home in Maui County for the past several months until the median dipped to $983,575 in August, according to a report released Monday. This photo was taken Tuesday morning. The Maui News / MATTHEW THAYER photo

The median price of a home in Maui County dipped below $1 million for the first time in nearly a year, as the housing market “continues to shift in a more buyer-friendly direction,” according to the latest report from the Realtors Association of Maui.

The median sales price of $983,575 for a single-family home in August was a 5.9 percent decrease from the median price of $1,045,000 in August 2021 and a sign of the changing market after a summer of record-high sales prices and mortgage rates that discouraged many buyers.

“Inflation, higher interest rates and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market,” said the report, which was released Monday.

Some experts, including National Association of Realtors Chief Economist Lawrence Yun, believe the worst of inflation may be over, according to the report.

“Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction,” the report said.

The last time the median sales price dropped below $1 million in Maui County was October 2021, when the median price was $930,000. Over the summer, Maui County set a new record for median home prices at $1,252,500 in June.

While the 99 new listings, 87 closed sales in August were a decrease from the 135 new listings and 122 closed sales in August 2021, the inventory of homes for sale last month was an improvement at 279, an 18.7 percent increase over the 235 homes in the August 2021 inventory.

There were 70 pending sales in August, a 45.3 percent decrease from the 128 pending sales in August 2021, a possible reflection of the buyer trend of waiting out the sky-high prices.

Homes that sold in August had been on the market for an average of 119 days, slightly longer than the 114-day average in August 2021.

However, while the housing market showed some signs of relief in terms of pricing, the condominium market experienced a jump, with a median sales price of $820,000 in Maui County in August, a 26.6 percent increase over the same time last year. This tied April’s median price and was the highest in at least a decade.

The 97 new condo listings in August were a 40.1 percent decline from the 162 new listings at the same time last year, while closed sales also took a dive from 190 to 103. Pending sales dipped 30.7 percent from 150 to 104.

August’s inventory of condos for sale was 213, a 33.1 percent increase over the 160 condos in the inventory in August 2021.

Condos were also being scooped up much faster — units that sold in August had been on the market an average of 79 days, a 21.8 percent increase over the 101-day average at the same time last year.

Central Maui continued to be the hottest market for single-family homes, as 25 sold in Wailuku with a median sales price of $941,600. Nine homes sold in Lahaina with a median price of $1.65 million, while eight sold in the Kula-Ulupalakua-Kanaio area with a median price of $1.16 million.

The most expensive market was Kapalua, where two homes sold with a median sales price of $7.9 million.

The least expensive homes were on Molokai, where four sold with a median sales price of $512,500.

Kihei continued to be one of the most popular areas for condo sales, with 34 units selling with a median sales price of $679,000. Another 23 condos sold in the Napili-Kahana-Honokowai area with a median sales price of $808,379, while nine units sold in Kaanapali with a median sales price of about $1.14 million.

The priciest area was Wailea-Makena, where eight purchased units had a median price of about $3.2 million, while the least expensive area was Kahului, where four units sold with a median price of $184,250.

“Summer 2022 has been a season of change for the U.S. real estate market,” the report said. “With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9 percent month-to-month and 20.9 percent year-over-year as of last measure, according to the National Association of Realtors (NAR).

“Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in demand has been particularly hard on homebuilders, causing new-home sales and construction to slow.”

* Colleen Uechi can be reached at cuechi@mauinews.com.