What To Know About the Maui Real Estate Market Heading Into The Summer of '21
Since the initial easing of the Coronavirus travel restrictions in October of 2020, the Maui Real Estate market has been on an unprecedented run of increased sales, increased sales prices, and historically low inventory in both the single-family home market and the condominium market.
Single Family Homes
In May, the median sales price for a single-family home on Maui has skyrocketed to $1,039,000 a staggering 29.9% increase of the median sales price in May of 2020, while the average sales price soared 35.1% over May 2020 at $1,739,177. The luxury home market has been just as hot as the median-priced market. There were 121 closed sales in the single-family market with 129 new listings. If you've been making offers with me over the last few months, you've noticed that inventory remains low and a good home won't stay on the market more than 3 to 4 days, just enough time to see it and put an offer together and even then its a multiple offer situation where an over-asking offer most likely wins.
Condos on Maui
Condominium average sales prices were also up to $1,003,263, a 32.1% increase over the same period of 2020 while Maui Condo inventory was down 62.2%. We currently have 1.4 months of condo inventory, a historically low number. Single-family homes only have a 1.8 month supply of inventory. There were 241 closed condo sales in May 2021 versus 54 sales in May 2020. Condo sales suffered the most during the pandemic so the rebound was expected and once the pent-up buyer demand begins to fade, we should see a balance back towards the center again, but it may be a while before this hot market starts to cool.
Expect More of The Same
The reason most of us in the business expect this market to continue is that supply is just so far behind demand. New construction simply can not keep up and provide the number of homes that people want to purchase and sellers aren't only interested in cashing in on the market conditions. As a seller of a primary residence, it is a challenge to find a replacement property and that is creating some reluctance, and those that own successful short-term rentable condos are starting to be rewarded by holding through the pandemic by increased nightly rates and an uptick in occupancy from rising tourism numbers.
With construction costs rising, so will the average sales prices of new developments. Buyers armed and ready with loan preapproval and extra cash know they need to offer over asking to get accepted and don't mind paying more to lock in their rates and secure a home. As these transactions close the comps get higher and higher. In especially popular areas like Wailea, the condo inventory is currently very limited because there are dozens of prepared buyers looking specifically in each complex and neighborhood, so any popular new inventory goes pending in days.
That being said, don't be discouraged as a buyer, just be prepared. I've secured many great properties for my clients this year as a result of being prepared and having the right info at the right time. It may take us a couple of offers to land a contract, but it will all be worth it while you're sipping a Mai Tai on your Lanai! Get started on securing your dream property on Maui by getting in touch today!
Get In Touch
Get started on your journey to owning property on Maui by getting in touch with us at Maui Elite Property.
Posted by Evan Harlow R(S) 82003 on