The future of Maui’s real estate market is at a crossroads
Trending
As Maui's real estate market is showing some improvement, its future remains at a crossroads.
Michelle Del Rosario of Maui & Co. Real Estate said the latest Realtors Association of Maui statistics that show an increase in sales and prices in October may not tell the whole story.
"I say that because of the wildfires that happened last year. You had people who maybe were looking at buying or selling and then the fires happened," she said.
According to the latest statistics from the Realtors Association of Maui, the median sales price for single-family homes increased by 2.4% year-over-year, reaching $1.3 million. Condominium prices also increased, with the median price up by 9.2% to $892,500 compared to last October.
The analysis used data collected from the association's Multiple Listing Service system and showed there were 51 single-family home sales compared to 48 in 2023. In terms of condominium sales, there were 62 sales in October 2023 and 64 during October this year, with the median sales price increasing from $817,000 to $892,000.
And while the data point to growth, Del Rosario said overall economic conditions are impacting the industry -- from the recent elections to rising property taxes and an increase in insurance costs.
"I believe when you look at all of these factors, as well as tourism being down, we're not seeing a great job growth rate and we're not seeing livable wages in Maui County. I think all of those things are affecting the ability for people to not only buy property, but to maintain their ownership of property and continue to live on Maui," she said.
"The biggest thing for local families is they don't have the income to qualify at the price point we have; they don't have the saved money as a large down payment because people are spending everything they have just to keep their bills paid here. They're paying high rent so it's difficult to save and they don't really have access to capital. Interest rates are high," she said.
She said the current market is also making it competitive for local real estate agents.
"I can tell you there are lots of realtors that aren't doing deals and aren’t being paid," she said.
However, she and other real estate agents who are still in the game remain optimistic.
"I think it's going to be challenging for a little while, but I think that our market is always going to be in demand and I think we have a bright future," she said.
"I would love to see and assist more local owners be able to make homeownership come true for them," she added.
Lynette Pendergast, president of the Realtors Association of Maui and an agent with Equity One Maui, agreed that while the market is facing some challenges, people are likely to always look to Maui to buy or sell.
"Maui remains a desirable place to call home," she said in a press release.
She said October's statistics came as a surprise because of the lack of inventory.
"October is typically not a super busy month for sales. I think because people held off for so long, they got a little bit anxious and felt it was time to do it now," she said.
She said that coming into the holiday months, the market may experience a drop.
"The holidays are always a hard time," she said. "Are you looking for a house or are you looking for Christmas presents?"
Uncertainty seems to prevail in the Maui market moving forward.
"We're hearing the interest rates might go down, but they might go back up again," she said.
Statistically, the interest rates come down when the election takes place, she said, and then a few months later might come back up again -- at least she hopes.
"We want to work alongside the policymakers, the community leaders, because there's so many challenges facing the buyers and the renters right now," she said. "We want to make sure we're there offering answers, helping out and giving information."
For more information on the latest real estate statistics on Maui, visit ramaui.com.