January 2023

 
Maui’s real estate market got off to a slow start in 2023, with total sales down -32% for single-family homes and -65% for condos compared to January of last year. One of the biggest drivers of the reduced sales activity was a 40% decrease in new listings. With all property types combined, Maui has 2.8 months' supply of inventory for sale, indicating that while demand has softened, it remains a seller’s market as 1 in every 5 properties sold for above asking price in the last month and days on the market has leveled off just above recent lows. With interest rates expected to hold steady at around 6%, many experts anticipate that sales activity will see a sluggish pace in the early part of 2023.
 
Median sales prices increased just 1% for single-family homes in January (compared to the previous year) as prices have leveled off in recent months. Consequently, the importance of pricing has never been greater. Last month, 25% of homes sold had a price reduction. On average, homes that had a price reduction sold in 210 days compared to just 87 days on the market for homes that sold at or above the asking price. As with any shifting real estate market, understanding the nuances specific to each neighborhood is critical whether you are a buyer, seller, or investor.
 
 
One of the strongest areas in the housing market in recent months, the condo market finally showed signs of exhaustion as there were only 54 total sales, matching the low of May 2020 when the pandemic first began. While condo median sales prices fell 9% year over year and nearly $200K from the highs of November 2022 ($856K), there is no immediate cause for concern as both sales and inventory levels remain low, especially in the luxury markets of Kaanapali, Kapalua, and Wailea/Makena where higher sales can influence overall market reporting.
 
 
 

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