Nationwide Sales Numbers are Slowing Down…But Maui’s Median Sales Price is Rising!

Across the U.S., the trifecta of rising inflation, seemingly ever-escalating home prices, and sharp increases to the typical mortgage rate seem to have finally exhausted the red-hot housing market over the past few months.

“Higher prices, coupled with 30-year fixed mortgage rates approaching 6%, have exacerbated affordability challenges and rapidly cooled demand, with home sales and mortgage applications falling sharply from a year ago,” according to the latest report recently compiled and released by the REALTORS® Association of Maui, or RAM.

Furthermore, even here on the Valley Isle, it’s no secret that the breakneck pace of home sales has cooled somewhat from the past few years. In fact, just this past month, sales of single-family homes declined for the third consecutive month, with 85 total closings. That’s the lowest number of transactions in a month since back in May 2020, the start of the pandemic!

Condos, meanwhile, saw a drop of 40% in total volume as compared to June of 2021.

With all that being said, it would seem to be a fairly sure bet that the median sales price for Maui County homes would also (finally) take a dip, right in line with both the national trends and with the slowing of total sales.

And you’d be wrong!

Maui County Sets New Record High for Both Single-Family Homes, Condominiums

For the month of June, RAM reported that the median sales price of single-family homes reached its fourth all-time high of 2022, coming in at more than $1.25 million dollars (and besting April’s previous record high of $1.24 million). Signifying a growth of over 13% from the same time last year, the record is yet another sign of the Valley Isle’s ongoing market strength and overall desirability, with buyers on and off the island competing for the very best properties to be had.

Not to be outdone, condominiums set their own new record of $832,500 last month, up over 34% from the median of June 2021. It’s the third such record set this year for condos—and, as is also true for single-family homes, we’ve still got a half-year of reported figures yet to go!

Overall, the recent statistics are largely in line with Maui International’s predictions for the market to continue setting the pace. While the national trends in median sales price begin to dip downward, Maui’s elusive charms and exclusive real estate will always be a primary driver of both total sales and median sales price, even when slight fluctuations normatively occur.

It can certainly be a lot to keep up with, though—and that’s why you should avail yourself to the services of a true professional! Give us a call today and let’s get started on buying—or selling—your next home here in paradise. A hui hou!