Welcome to our latest edition of the Maui Real Estate Market Update! In this post, we'll dive into the data from October, analyzing new inventory, pending sales, closed transactions, and more. We'll also discuss the current market conditions and the impact of recent events. So grab a cup of coffee and let's dig in!
October Market Activity
Let's start by looking at the market activity in October. Compared to the previous years, new home listings were down about 5% from October 2022. However, new condo inventory saw a 5% increase during the same period. Although it's a positive sign, it's still below the levels of previous years.
Now, let's take a closer look at new pending sales. Unfortunately, October 2023 proved to be a quiet month for new pending home and condo sales. Both categories experienced significant decreases compared to the previous year.
Moving on to closed transactions, we observed a decline in the number of homes and condos sold in October 2023 compared to past years. This could be attributed to various factors, including the aftermath of the recent fire incident and higher interest rates.
End of October Maui Home Inventory
To provide a comprehensive view of the market, we've included charts showcasing the active and pending home inventory by price points and communities at the end of October. These numbers serve as valuable context for understanding the current market conditions.
Five Notable Things About the End of October Home Inventory
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Active inventory of homes for sale increased by 7.5% between the end of September and the end of August. This growth seems to stem from relatively low buyer activity rather than an influx of new listings.
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When examining active home inventory by price point, we noticed that all price points below $3,000,000 saw an increase in inventory. On the other hand, inventory remained unchanged at all price points above $3,000,000.
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Pending home sales experienced increases at three price points, decreases at two price points, and remained unchanged for all price points over $3,000,000.
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Looking at active inventory by community, most districts did not witness any change in active listings. However, there were increases in four communities, with Kihei and Haiku seeing the most significant growth. Conversely, active inventory decreased in just one community.
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The pending home sales by community presented a mixed picture. Pending sales decreased in seven communities, remained unchanged in two communities, and increased in four districts. Notably, the Lahaina district experienced the most significant increase in pending home sales, primarily in the Launiupoko neighborhood.
End of October Maui Condo Inventory
Now, let's turn our attention to the condo market. During the last days of September and October, active condo inventory increased by almost 16%. However, pending condo sales fell just over 9% during the same period.
Similar to the home market, active condo inventory saw increases in most price points, with a few exceptions. Conversely, pending condo sales decreased in most price points, except for a few outliers.
When examining active condo inventory by district, almost all districts experienced an increase in active listings. Ka'anapali and the Napili, Kahana, and Honokowai area saw the most significant growth, while Kahului remained unchanged. It's worth mentioning that all condo complexes in Lahaina were impacted by the recent fire.
Five Notable Things About the End of October Maui Condo Inventory
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Active condo inventory increased in all but three price points. Notably, there continues to be no inventory under $250,000.
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Pending condo sales decreased in all but four price points. The only increases occurred in the $750,000 to $999,999 range and for condos priced over $10,000,000.
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Analyzing active inventory by district, most districts witnessed an increase in active listings. However, Lahaina had no active listings due to the fire incident.
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Pending condo sales decreased in five districts between the end of September and October. Curiously, the Wailea district experienced the most substantial decrease, while Kapalua, Kihei, and the Napili, Kahana, and Honokowai area saw modest increases.
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The impact of both the fire and high interest rates is evident in the Maui condo market. The fire's aftermath resulted in increased condo inventory in Ka'anapali, while high interest rates deterred buyers from purchasing.
Market Thoughts
Needless to say, October was a quiet month for the Maui Real Estate market. The combined effects of the August fires and higher interest rates have contributed to the slowdown.
The impact of the fires can be observed in West Maui, particularly in Ka'anapali. Condo inventory in this area has increased significantly, reaching the highest monthly total since May 2022. Other West Maui districts, like Napili, Kahana, and Honokowai, have also seen notable increases in condo and home inventory.
The recent surge in interest rates has had a pronounced effect on the market. Condo purchases and home sales in October had a high percentage of cash transactions, indicating that more financed buyers are being priced out of the market.
Interestingly, unlike other fire-affected areas in the past, Maui has not experienced a surge in pending sales. This is likely due to the combination of insurance challenges and the impact of high interest rates.
While it's important to analyze the market from a real estate perspective, it's crucial to acknowledge the human component. Many island residents are still struggling to find long-term rentals in the aftermath of the fire. If you're a Maui property owner with available housing, please consider signing up online at Maui Hale Match to help those in need.
To brighten this post, here's a stunning image of Hawaii Green Sea Turtles resting on the beach along Maui. Take a moment to appreciate the beauty of our island paradise.
That wraps up our Maui Real Estate Market Update for Q4 2023 Vol. 1. Stay tuned for more insights and analysis in the future. Mahalo for reading!
