Home prices in Maui County top $1.2 million
Record-high rates could be cooling competition, report says
A housing market that’s already put a strain on prospective local homebuyers reached new record heights in April, cracking the $1.2 million threshold for single-family home prices.
The median sales price of $1,242,500 for a single-family home in April was the most since the Realtors Association of Maui started keeping track in 1993 and a 27.4 percent increase over the median price of $975,000 a year ago.
It’s a trend that’s discouraging local buyers but may help cool competition moving forward.
“Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat,” according to a report from the association that was released Wednesday.
Maui County median home prices surpassed the $1 million mark in May 2021 and have only dipped below that threshold in two of the past 12 months.
Inventory continues to decline, amplifying prices and pressure. In April, there were 176 homes for sale, a 24.8 percent decline from the 234 homes on the market in April 2021.
Last month also saw fewer new listings at 88, a 25.4 percent decline from the 118 new homes listed in April 2021, and closed sales at 106, a 21.5 percent decrease from the 135 closed sales a year prior.
Central Maui continued to be a popular market, as 23 single-family homes were sold in Wailuku with a median sales price of $887,000. Another 14 homes sold in Kihei, with a median price of $1,547,500, while 12 homes were purchased in Kahului with a median price of $950,000.
Condominiums in Maui County are following a similar trend as homes, with growing prices and declining inventory.
Median sales prices for condos soared to $815,000 in April, an 18.1 percent increase over the median price of $690,000 in April 2021.
Inventory plunged to half of what
it was, going from 316 units for sale in April 2021 to 158 units last month.
New listings were also down from 193 to 148, a 23.3 percent decline year over year, while closed sales fell from 264 to 176, a 33.3 percent drop.
In Kihei, 60 condos sold with a median sales price of $742,500, while 32 units sold in the Napili-KahanaHonokowai area with a median price of $740,000. WaileaMakena saw the third-highest number of units sold with 19 and a median price of $1,795,000.
In addition to rising sales prices, mortgage rates have also played a role in whittling down the field of buyers, the report said. The average 30year fixed rate mortgage exceeded 5 percent in April, the highest level since 2011, according to Freddie Mac.
“The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70 percent compared to this time last year,” the report said.
“As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.”