Maui's median home price jumps 15 percent compared to this time last year

Posted by Staff Writer on Thursday, March 28th, 2019 at 1:38pm.

 

Despite predictions for a tougher year for the real estate industry, the number of sales and property prices are holding steady on Maui.

Each month, the Realtor Association of Maui releases market statistics, including a broad outlook of the industry and historical data. The numbers from February 2019 show that new listings jumped 7 percent and pending sales increased 10 percent for single-family homes compared to the year before.

The growth wasn’t positive for condominiums, however. New listings decreased 21 percent and pending sales dropped 24 percent.

And for both condominiums and single-family homes, inventory remained tight: It actually dropped 14 percent for single-family homes and 22 percent for condominiums. A steady demand for homes coupled with limited new development has led to short supply of homes for buyers on Maui.

At the same time, property prices aren’t going down. The median sales price jumped 15 percent to $790,000 for a single-family home and 12 percent to $524,500 for condominiums compared to the same month in 2018.

The Realtors Association of Maui’s report said it’s worthwhile to factor in weather across the U.S. when discussing market trends, largely because particularly cold, rainy and snowy weather on the mainland can sometimes stall buyers and sellers’ actions. But even though the mainland was slammed with colder than normal temperatures and record-breaking snowfall in some areas, housing markets remained steady.

At this point though, it’s too early to know how it will play out over the rest of the year. Despite a strong U.S. economy, historically low unemployment and steady wage growth, home sales began to slow across the nation late last year, according to the Realtors Association of Maui. That plateau can be blamed on several factors, like already high prices and a steady stream of interest rate hikes by the Federal Reserve. To help keep affordability, the Fed didn’t rise rates during January 2019.

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