We are not yet out of the woods when it comes to the pandemic, but the real estate market has remained robust, bolstered by low-interest mortgage rates. People have been spending a lot of time indoors, causing them to reevaluate their living situations. Outdoor space is a premium, as well as access to views and fresh air.
Destinations such as Maui have become much more appealing, and the island faces a potentially low supply of available homes. Demand has been skyrocketing, and many sellers are receiving multiple offers, many of which are above the asking price. Who wouldn’t want to own property on such a beautiful island?
The Realtors’ Association of Maui reports that inventory decreased 49.3% for single-family homes and 78.1% for condominiums in July. The median sales price increased 34.7 percent to $1,050,000 for single-family homes and 41.2 percent to $713,000 for condominiums. In addition, the month’s supply of inventory decreased 62.7% for single-family homes and 87.9% for condominiums.
According to the National Association of Realtors (NAR), more sellers listed their homes in June, hoping to take advantage of rising sales prices. That said, the current inventory remains 18.8% lower than a year ago. Forbes reports that home prices are up 17.2% in June 2021 compared with June 2020. It’s a simple case of supply and demand, and given that raw material prices have increased so dramatically to the point that it’s prohibitive for many to build a new home, the existing home market prices have soared in response as well.
Outlook for Fall 2021
In more normal years, home sales would usually cool in the fall as kids are back in school, but things are far from normal still. Many experts predict that won’t be the case in 2021, and prices will remain higher than usual. That said, prospective buyers shouldn’t hesitate to get prepared if they are ready to move. It’s important to have documentation in order, including pre-qualification for a mortgage and proof of available funds.
When it comes to Maui specifically, according to Redfin, Maui County home prices were up 18.6% in July compared to last year. And homes are selling faster, too: “On average, homes in Maui County sell after 72 days on the market compared to 88 days last year.”
The View from Maui
One interesting point is that tourism rates in Maui have declined due to the pandemic, yet home sales and prices are showing a different story. People are reevaluating how they live and work. Now more than ever, it is becoming acceptable to work remotely, especially for people who run their own businesses and have such flexibility. There is less need to be chained to an office, and people are choosing to relocate farther away from typical business centers.
Many people are ready to trade in their cramped urban existences for something a bit more tropical. Hawaii is an excellent option because it is easily accessible from the West Coast and it is a part of the United States, but it’s still an exotic destination all of its own. The climate is pleasant year-round, and the lifestyle is delightfully laid back. It boasts beautiful beaches, amazing food, and rich local culture.
Maui is also an ideal place for an investment property, which could function as a vacation rental or Airbnb. Even though tourism rates have been lower, with vaccination rates increasing and travel restrictions lifting, tourism will no doubt increase. Right now is a good time to make an investment, even with current housing pricing trends on the rise.
The inventory in Maui is limited, so by this nature, there will always be a sense of competition to own a property on this beautiful island. But with the right team of real estate professionals in place, you will have an advantage on your competition. Our agents are ready to assist you, whether you are looking for an investment property or your full-time home. We are experts on the local Maui real estate market, and we will evaluate your needs to find the right property for you. There has never been a better time to invest in Maui real estate.