Last week, the Realtors Association of Maui (RAM) released their official Maui Real Estate Statistics for the month of September. There was only one real change from what we posted in the “Unofficial September Statistics”. RAM reported one additional home sale above what we had reported at the beginning of the month. The RAM stats also offer a little more historical data and community level granularity.
When looking at the official RAM stats, the one thing we always hone in on is the monthly inventory. During September, Maui saw another drop in home and condo inventory with a slight uptick in land inventory. We have seen a steady decline in the inventory of properties on the market for the last couple of years. We have seen increased buyer activity and a decrease in the number of new listings coming to market each month as shown in the chart below.
There have been fewer bank owned properties coming to market and fewer conventional listings as well. A number of potential sellers are stuck in their homes due to negative equity. They don’t want to take a loss and are waiting for the market to rebound. This phenomenon is not limited to Maui. We are mirroring national trends.
We have talked about the potential influence of shrinking inventory for some time. The effect was first felt among entry level condos in Kihei .This was the first part of the Maui market that experienced scarcity and the first segment to see modest price increases. As scarcity impacts more parts of the Maui market, those segments of the market are starting to experience signs of upward price pressure. There are also still parts of the market where inventory is more abundant and prices are flat to declining. That being said, it is setting up to be an interesting Winter buying season on Maui. If we don’t see an influx of inventory and the economy holds steady, the recipe is in place for additional price increases. Contact The Maui Real Estate Team if you are in the market to buy or sell Maui Real Estate. We would welcome the chance to discuss the market and your real estate needs.