Prices for condominiums and single-family homes surged in May, up 13.5 percent and 12.4 percent from last year, according the Realtors Association of Maui.
The real estate group recently released a report outlining changes in the Maui home and condo market, which have risen over the last year largely due to a lack of inventory, according to the group.
In May, the median price for a single-family home was $700,000 - a big jump from $622,500 in May 2016. During that time, the number of homes available on the market dropped 12.1 percent - with a total of 528 available.
Meanwhile, the median price for a condominium from $422,000 in May 2016 to $479,000 in May 2017. At the same time, condominium inventory dropped 21.5 percent to a total of 679 available units.
Ron Silva, vice president and broker in charge at Island Sotheby’s, said that demand for recently-constructed condominiums and single-family homes is driving the increase in sales. And because there is a limited number of available properties, sellers are incentivized to sell, he said.
“People are wanting to sell,” said Silva. “Sellers are getting top dollar.”
Real estate experts say the length of time a home is on the market is directly related to the strength of the housing demand. That length of time dropped substantially from last year - about 20.5 days less - with single-family homes being on the market for an average of 132 days.
The increase on Maui comes as home prices have soared across the U.S. While some people have worried about a boom-and-bust scenario similar to the one in the Great Recession, real estate experts say lending standards are stronger than they’ve ever been -- something that will ensure there’s not a repeat of 2007.