With Maui’s residential median sales price at its highest point in more than a decade, real estate experts are hopeful 2017 will be a strong year for the island’s housing market.
Maui’s median sales price for a residential properties soared to $700,000 in December 2016 — the highest since September 2006. Meanwhile, the median price for condominiums and land rose to $414,500 and $435,000, respectively.
Real estate agents and investment experts alike are hopeful that the market’s upswing will continue through 2017. Alex Cortez, an agent with the Wailea office, said in particular, he expects to see a growing market for high-end, luxury homes.
“2017 will be a very busy year for uber high-end homes,” said Cortez. “Those markets will see substantial increases.”
Cortez says the market for high-end homes like this $29-million Makena estate will boom in 2017.
The number of significantly large sales — transactions more than $10 million — has grown substantially in previous years, especially in the resort areas of West and South Maui, Cortez said. As long as the economic climate remains positive, Cortez expects high-end home sales and purchases to continue to rise.
“Consumer confidence is the key,” said Cortez.
Island Sotheby’s agent Volker Weiss, who specializes in the resort areas of South Maui, is optimistic about the economy. He anticipates that home prices will rise across the board, but in part due to reduced inventory.
“We have been lagging in building homes and condos since 2008,” said Weiss. “That said, I think prices may go up.”
Weiss expects luxury properties in South Maui, such as this $15-million oceanfront home, to stay popular with out-of-state buyers.
Weiss said the market is divided into two sectors — one for out-of-state and foreign buyers, and another for locals. Luxury homes and condos in the resort areas of Wailea, Makena and Kihei will continue to be popular among tourists, while Maui locals may expect more activity in areas such as Wailuku and Pukalani, where new developments are under construction.
Real estate data from 2016 show the number of monthly real estate transactions have increased — particularly the number of cash sales. For several months in 2016, more than one-third of sales were cash, which means buyers in 2017 may have more success if using cash.