Continued Market Stabilizations Have Some Would-Be Buyers Vexed on the Valley Isle

Last month, we shared that home sales in Maui Nui had fallen for the third consecutive month in 2022 as several market factors (inflation, rising interest rates, et. al) combined to slow the torrid pace set over these past few years. That certainly didn’t stop the median sales price from reaching a new all-time high back in June, rising to over $1.25 million for single-family homes—the fourth such record set just this year.

The July numbers have officially been published—courtesy of our friends over at the REALTORS® Association of Maui—and they serve to further demonstrate both the inherent uniqueness of Maui’s marketplace and the rising challenges of the global marketplace when it comes to buying a home. The median sales price of single-family homes came in at $1.1 million last month, a 5% rise year-over-year from July 2021’s tally. While this is certainly nothing to sneeze at, it is rather notable that single-family home sales also declined 20% on the whole, with ongoing near-record sales prices and escalating mortgage interest rates squeezing out many worthy, would-be buyers to the Valley Isle.

Meanwhile, condo sales dropped a precipitous 53% in July, but still sported a median sales price of $789,500, a growth of 11% year-over-year.

Nationally speaking, it’s been reported that purchasing a home is now 80% more expensive than it was only three years ago, according to extrapolated data from the National Association of REALTORS®. “As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand,” according to their report (and as printed in Maui Now).

While it’s true that inventory grew by 6.5% last month (to a total of 262 units available for sale), the ongoing lack of available units has continued to compound the would-be buying woes of a public hungry for any and all properties here on Maui—and especially for many first-time buyers that would have been far more able to break into such a crowded marketplace in years past, save for the myriad of complicating factors currently influencing the local and national scene.

“The U.S. housing market has continued to cool, as rising mortgage rates and record-high sales prices have stifled affordability, weakening demand and pricing out a multitude of buyers,” according to the national report.

Where to from here?

If the latest news from the ground has you worried, it’s more than understandable. The islands have truthfully never been the easiest place to put down your roots, and it’s been nigh-impossible as of late to align all the critical pieces for all but the most discerning of buyers. In such troubled times, it takes a true professional to help guide the way and see you through—and that’s why Maui International is speaking your language! Our team is composed of Maui’s very best realty professionals to help you and your ’ohana make all those island dreams come true.

Don’t delay—give us a call today!