Are you entering the central Maui real estate market this year? If so, you may have many questions about the area and the housing market. Central Maui, including Kahului and Wailuku, promises a life of endless fun and adventure. This area is bordered by the stunning West Maui Mountains and the rising peak of Mount Haleakala, with plenty of shoreline to explore under sunny skies. Boat owners will enjoy the convenience of Maalaea Harbor, while the Iao Valley State Park is the perfect spot for hiking and picnicking. Residents of central Maui bask in the warm tropical weather here year-round.
If you are planning to buy or sell a home in central Maui, here is the latest information about the market.
The central Maui economy
It may come as no surprise that the major contributor to the Maui
economy is tourism. Maui also supports retail, other businesses, and agricultural ventures, including pineapple, coffee, and corn. The Maui economy was hit fairly hard during the pandemic but has shown signs of rebounding due to the influx of tourists returning to the islands. The cost of living in Maui remains slightly lower than the island of Oahu but significantly higher than the mainland. For example, the average price of a gallon of gas is about five dollars. If you own a condo with approximately 900 square feet, you can expect to pay almost $350 monthly for utilities
. The job market has also steadily improved, with the current unemployment rate at approximately 3%
The Maui housing market
Interest rates, inflation, and the available housing inventory have all impacted the central Maui real estate market. Let’s take a closer look at the trends.
Interest rates and inflation
The rising inflation seen nationwide has had a substantial impact on interest rates. Rates hit a high last fall, with subsequent decreases since then. Although rates have recently spiked, most experts agree that interest rates should continue to drop over the course of the year. Rates for conventional 30-year fixed loans are averaging 6.97%. If you are planning to obtain a jumbo loan, allow for an additional 0.25-0.50% increase. Lawrence Yun, the National Association of Realtors (NAR) Chief Economist, projects
that these rates will continue to decrease gradually and reach 5.7% by year-end. This offers good news for potential buyers hoping to enter the market, as this should lead to a significant decrease in monthly mortgage payments.
The available inventory on Maui remains low despite rising by approximately 22% since this time last year
, according to the latest data from the Realtors Association of Maui (RAM). RAM also reports that single-family properties are spending just over 100 days on the market, compared to 116 in early 2022.
The median sales price for single-family homes has held relatively steady, dropping by just 2% over the last year to reach $1,076,500. As for condominiums, however, there was a 24% increase
in the median sales price from $730,500 to $908,000.
Implications for buyers
While many buyers may be waiting for interest rates to drop before investing in a new Maui luxury home, they should also consider various other implications of the current market.
While the housing scene has not reached a fully balanced market, inventory
has risen to four months of available single-family homes. Buyers will certainly have more options, keeping in mind that there will still be plenty of competition for the most sought-after properties. With prices holding relatively steady and inventory rising, now may be the perfect time to jump into the housing game if you’re seeking a beautiful single-family home.
Considerations for sellers
While sellers have seen the median sales prices of single-family Maui homes drop slightly over the past year, they should feel some encouragement if they are preparing to list in the current market. Although prices have decreased a bit, there is still a very limited inventory of homes for sale. This will keep the prices from decreasing significantly over time, as there still remain more potential buyers than homes in Central Maui. This will keep the Maui market trending toward sellers, so you can continue to expect high offers and few requests for concessions.
The impact of a knowledgeable real estate agent
While it is important to understand the current trends of the Maui real estate market, you should also be aware of the potential for change at any point. For this reason, it’s essential to team up with a professional who is highly versed in the real estate scene.
A knowledgeable real estate agent will serve as your advocate and guide as you begin the buying or selling process. For example, if you are buying a new luxury home, your agent will guide you to the listings best suited to your budget and lifestyle. They will also advise you in crafting a competitive offer and whether you can expect to negotiate for any possible repairs. If you are selling your luxury home in Maui, your real estate agent will perform a comparative market analysis (CMA) to determine a fair and appropriate price range for listing your home. In addition, your agent will provide you with a professional marketing plan to reach the most potential buyers.
Ready to move forward?
Now that you have a better understanding of the current trends of the central Maui real estate market, you may be ready to move forward in your journey. Whether buying or selling a home, you will benefit from the experience of a real estate team who knows the Maui area inside and out. This is where The Yokouchi Team
truly shines. This top-tier team has unparalleled expertise in the central Maui market and has served their community with integrity for many years. Contact The Yokouchi Team at Compass to view central Maui luxury properties
or to get started with listing your home.*Header photo courtesy of Yokouchi Team