Maui Real Estate Blog

Maui Real Estate Market Update August 8, 2020

The Maui Real Estate market concluded another pretty busy seven day period between July 29th and August 4. It was the third busiest week for new pending sales during Covid-19. Sales activity was the strongest since the end of March. While new inventory was up this week, that increase wasn’t uniform across all property types. Keep reading for more details and numbers.

This Week’s New Pending Sales

Weekly pending real estate sales in Maui County by property type during Covid-19
Weekly new pending real estate sales by property type in Maui County during the Covid-19 pandemic. This is the best indicator of current buyer demand in the Maui Real Estate market.

Maui Realtors reported 57 new pending sales over the seven day period between July 29th and August 4th. That is a 7% decrease from last week and 14% higher than the same seven day period of 2019. This is the second week in a row when pending sales this year exceeded the same seven day period of 2019. It is only the third time this has happened during Covid-19.

Notable Numbers from This Week’s Pending Sales

  • The 57 new pending sales include 21 homes, 29 condos and 7 lots.
  • Demand for homes is outpacing demand for condos through most of the pandemic. Over the last month, condo activity seems to be picking up while home sales are down a little. I can’t give a definitive reason why, but I surmise scarce home inventory could be a factor.
  • Of the 29 new pending condo sales, 19 are in complexes that allow vacation rentals.
  • Two homes listed for over $2,000,000 went under contract this week.
  • The demand for land remains consistent on a weekly basis. This week there were 7 new pending lot sales. Over the last six weeks, we are averaging 6 new pendings per week.

This Week’s Closed Real Estate Transactions

Weekly closed real estate transactions by property type during the Covid-19 Pandemic in Maui County, Hawaii
Weekly closed real estate transaction by property type in Maui County, Hawaii during Covid-19. Sales are a lagging indicator of buyer demand. Most contracts take 30-60 days to close in Hawaii. With some new developments, the contracts may date back a couple of years prior to the start of construction.

Maui Realtors reported 65 sales over the seven day period between July 29th and August 4th. That is a 59% increase over last week and down 8.5% from the same seven day period of 2019. This is the busiest week for sales since the last week of March. The higher sales numbers are reflecting the increased buyer activity in June. The numbers also received a boost from ten sales in new developments. Nine of those sales are from contracts written in 2019. One sale at Makena Golf and Beach Club goes all the way back to a contract agreed upon in 2017.

This Week’s New Inventory

A chart displaying weekly New inventory during the Covid-19 pandemic.
Weekly new inventory by property type during the Covid-19 Pandemic in Maui County, Hawaii.

Maui Realtors brought 72 properties to market in the last week. That is 26.3% more than last week. It is 9% lower than what came on the market during the same seven day period of 2019.

Once again, more new condo inventory came to market than any other property type. The 43 new condo listings exceeds the 29 that went pending in the last week. The difference between new condo inventory and condo pending sales isn’t quite as drastic as it was a month or so ago, but there is still a net increase in condo inventory.

As mentioned over the last couple of weeks, the increase in inventory isn’t occurring in all parts of the condo market. It is more pronounced in some vacation rental friendly condo developments and the entry level non-vacation rental developments in Kihei. We are starting to see the impact of increased inventory as some sellers are reducing prices below recent comparable sales.

There were 23 new home listings between July 29th and August 4th. That is slightly above the 21 homes that went pending. The inventory of homes for sale on island remains limited overall. The limited inventory supports and in some cases means upward pressure on current home values depending on location and price point.

Between July 29th and August 4th, 6 land listings came to market. That is less than the 7 lots that went under contract over the same period. Inventory in the land market grew over the first few months of the pandemic. Over the last month or more, inventory stabilized. Pricing for land across most of the island is stable to slightly up depending on location and price point.

Contact The Maui Real Estate Team

While the situation in the world remains wildly unpredictable, the national real estate market remains resilient. While that is true for Maui in general, we are seeing potential signs of market bifurcation. Some parts of the market remain strong while others are starting to soften. We continue to monitor the island’s various market segments closely. Contact the Maui Real Estate Team if you are considering buying or selling property on Maui. We welcome the chance to learn about your needs and offer our market expertise.

Pete Jalbert

Maui Real Estate Blog

Maui Real Estate Market Update July 31, 2020

The seven day period between July 22nd and 28th was the second busiest for buyer activity since the start of the Covid-19 pandemic. Sales activity was the second strongest since April. The amount of new inventory coming to market decreased. Find out more details on recent Maui Real Estate market activity in the paragraphs below.

This Week’s Pending Maui Real Estate Sales

A chart that compares weekly new pending real estate sales in Maui County during the Covid-19 pandemic
This chart compares weekly new pending sales by property type during Covid-19. This chart is a good gauge of current demand from buyers.

Maui Realtors reported 61 new pending sales over the seven day period between July 22nd and July 28th. That is a 20% increase in new pending sales over last week. It is a 15% increase over the same seven day period of 2019. This is only the second time since the start of the pandemic that weekly pending sales outpaced the same seven day period of 2019.

Digging Deeper into This Week’s Pending Sales

  • The 61 new pending sales included 32 homes, 23 condos and 6 lots.
  • After two weeks of stronger pending condo sales, home sales rose back to the top. This is in line with the overall trend during Covid-19.
  • Of the 23 new pending condo sales, 14 are vacation rentable. One more is a higher priced condo in Wailea that prohibits short term rentals.
  • New pending lot sales totaled six for the fourth time in five weeks. The one exception was pretty darn close with five pending sales. The land market activity is up from earlier in the pandemic and seems to be plateauing. That of course means that next week’s numbers will likely be either significantly higher or lower.
  • The luxury home market continues to see pretty strong activity with four homes priced over $2,000,000 going under contract between the 22nd and the 28th.

The Latest Closed Transaction Numbers

Weekly Real Estate Sales by Property Type in Maui County during Covid-19
A comparison of weekly real estate sales by property type in Maui County during Covid-19. This is a lagging indicator of buyer demand. Typical real estate transactions on Maui take 30-60 days to close.

Maui Realtors reported 41 sales over the seven day period between July 22nd and July 28th. That is down 5% from the week prior and down 36% from the same seven day period of 2019. That said, this last seven day period is just one of three weeks since late April when sales numbers exceeded 40.

Comparing this week’s numbers to the same week in 2019, the biggest decline in sales is in the condo market. Condo sales are down 46% compared to the same week last year. Home sales are only down 22%. Land sales are down 25%, but that is a bit of a misleading number. There were four sales last year vs 3 this year.

New Inventory Numbers for the Week

Weekly New Inventory by Property Type during Covid-19
A Comparison of Weekly New Inventory in Maui County by Property Type During Covid-19.

Maui Realtors brought 57 new listings to market between July 22nd and July 28th. This is down 26% from the week prior and 14% from the same seven day period of 2019. This is the slowest week for new inventory since May.

Staying true to recent trends, more new condo inventory came to market than other property types. When factoring in pending sales, there was a net decrease in active condo inventory albeit not drastic. On previous market updates, we noted the increase in condo inventory at selected developments around the island. We surmised that the growing inventory could lead to a softening market. Our broker talked to an appraiser this week who closely tracks the market. The appraiser noted a handful of West Maui Vacation Rental Condos and entry level condos in Kihei where sales over the last week or two were below recent comparable sales.

Single family homes are not following the same trends. New inventory for the last seven day period was lower than the number of homes that went pending. We continue to see shrinking inventory in the home market. This in turn is causing continued upward price pressure.

While land inventory increased earlier in the spring and early summer, this marks four out of five weeks when pending sales exceeded new listings. Values in the land market appear to be stable to potentially increasing depending on location and price point.

Contact The Maui Real Estate Team

Looking at the numbers above, it is clear that the Maui Real Estate market continues to be resilient despite the current state of the economy and continued issues with Covid-19. That said, there is variability in market conditions based on property type, price point and location. Contact The Maui Real Estate Team if you are considering buying or selling property on Maui. We would welcome the chance to listen to your needs and discuss market conditions specific to your interests.

Pete Jalbert

Maui Real Estate Blog

Weekly Maui Real Estate Market Update July 24, 2020

The seven day period between July 15th and July 21st brought an increase in buyer activity on Maui. We also saw an increase in sales over this period as closed transactions start to reflect stronger buyer demand in June. New inventory was down slightly from the previous two weeks. Find out more details below as we review last week’s numbers.

This Week’s New Pending Sales

A chart that shows weekly new pending real estate sales by Property Type during Covid-19.
Weekly Pending Real Estate Sales by property type in Maui County, Hawaii during the Covid-19 Pandemic. New pending sales are the best indicator of current market demand.

Maui Realtors reported 51 new pending sales during the seven day period between July 15th and July 21st. That is a 24% increase over last week’s pendings, but still 22% below the same seven day period of 2019. After a drop in activity the week prior, more buyers took the plunge during the last seven day period. I would expect to continue to see fluctuations in activity.

Notable Numbers from This Week’s New Pending Sales

  • This week’s new pending sales include 20 homes, 26 pending condo sales and 5 lots.
  • This is the second straight week when new condo pendings outpaced home pendings. I am reticent to call this a trend at this point. Throughout Covid-19, overall demand has been higher for homes than condos on Maui.
  • The 26 condo pendings is the highest seven day total since the end of February and the beginning of March.
  • Of the 26 new condo pending sales, 15 were vacation rentable. One more was a resort condo that prohibits vacation rentals.
  • The five pending lots is down slightly from last week’s six. That said, buyer activity for land is higher over the last month compared to earlier in the pandemic.
  • This was a pretty busy week for high end buyers with four properties priced over $2,000,000 going under contract. The week prior, a home priced for $15,500,000 became the highest priced property to go under contract during Covid-19 to date. It held that distinction for just one week. A beachfront home in Kapalua listed for $16,500,000 went under contract this week establishing a new high water mark.

This Week’s Closed Transactions

A chart showing weekly closed transaction by property type in Maui County, Hawaii during Covid-19
This chart compares weekly closed transactions by property type in Maui County during the Covid-19 pandemic. Keep in mind that sales are a lagging indicator of buyer demand. Transactions typically take 30-60 days to close once a property goes under contract.

Maui Realtors reported 43 sales in the seven day period between July 15th and July 21st. That is 30% higher than last week and 23% below the same seven day period of 2019. The 43 sales is the second highest weekly total since late April. Sales should be a little higher over the next few weeks as they reflect the increased buyer activity in June.

This Week’s New Inventory

A chart showing new listings by property type in Maui County During Covid-19
Weekly new inventory by property type during the Covid-19 Pandemic in Maui County, Hawaii

Maui Realtors brought 77 new properties to market between July 15th and July 22nd. That is a 7% decrease from the week prior and 5% below the same seven day period of 2019. I would say this is still a pretty healthy supply of new inventory.

Once again, new condo inventory led the way with 45 new listings. While this was a pretty big week for pending condo sales, there was still a net increase in condo inventory. This is a continuation of overall trends. Condos are the one part of the market where growth in inventory merits watching. Some developments on island are starting to see elevated inventory levels.

While there were more new home listings this week than pending sales, the overall trend in the home market remains a general decrease in inventory. The lack of inventory is particularly acute at lower price points in the market.

There were only 3 new lots that came on the market this week resulting in a net decrease in inventory. That said, the more recent trend is an increase in land listings.

Contact The Maui Real Estate Team

The Maui Real Estate market remains surprisingly resilient considering the state of the world. We are supporting a number of buyers and sellers as they navigate these unusual market conditions. Contact The Maui Real Estate Team if you are considering buying or selling property on Maui. We would welcome the chance to talk and learn more about your real estate needs.

Pete Jalbert

Maui Real Estate Blog

Weekly Maui Real Estate Market Update July 18, 2020

The first seven days of July was the strongest week for real estate activity during Covid-19. The seven day period between the 8th and the 14th was considerably quieter. New pending sales were down substantially. Sales were up slightly. It was another week when a substantial amount of new inventory came to market. Keep reading for more details on this week’s numbers.

This Week’s Pending Real Estate Sales

Weekly pending sales by property type in Maui County During the Covid-19 Pandemic.
Weekly new pending real estate sales by property type in Maui County, Hawaii during the Covid-19 Era.

Maui Realtors reported 41 new pending sales during the seven day period between July 8th and 14th. That is down 34% from last week. It is 23% lower than the same seven day period of 2019. While this week’s numbers dropped somewhat precipitously, I am reticent to read into things too much. One week does not make a trend and the chart above shows plenty of fluctuation.

Notable Numbers from this Week’s Pending Sales

  • This week’s new pending sales include 16 homes, 19 condos and 6 lots.
  • The dip in pending home sales was particularly pronounced after 38 pending home sales last week. This was the slowest week for pending home sales since the doldrums of April. My gut tells me that this is more a function of variability than the start of a trend. We will see over the coming weeks.
  • Of the 19 condos that went under contract, 14 were vacation rentals. This comes on the heels of two weeks when there were fewer vacation rental pending sales.
  • This is the third straight week of 6 new pending lot sales. This is a bump from earlier in the pandemic when we were averaging just under 2 pending lot sales per week.
  • There were three pending sales over $2,000,000 this week. That includes an oceanfront home in Kahana listed for $15,500,000. That is the highest priced home to go under contract on island since Covid-19.

This Week’s Closed Transactions

A chart that tracks weekly Real Estate Sales by Property Type in Maui County During Covid-19
Weekly Real Estate Sales by Property Type in Maui County During Covid-19

Maui Realtors reported 33 sales in the last week. That is up 22% from last week. It is 45% below the same seven day period of 2019. With the exception of the last week of June, sales numbers have been pretty consistent over the last four or five weeks. It seems like we are due for a bump in sales sometime in the coming weeks as the properties that went under contact in early June begin to close.

This Week’s New Inventory

This chart shows weekly new inventory by property type in Maui County during Covid-19
Weekly new inventory by property type in Maui County during Covid-19.

Maui Realtors brought 83 new listings to market this week. That is down 12% from the week prior and 9% from the same seven day period of 2019. It is worth noting this is still the second biggest week for new inventory on the chart above including the seven day period in late February and early March.

The biggest increase in new inventory was in the condo market with 50 new listings. It marks another week that there were far more new condo listings then pending sales. While we aren’t seeing any price decreases, there is a notable increase in inventory in some condo developments around the island. Those include a handful of vacation rental condo complexes and a couple of entry level condos complexes in Kihei.

There were 27 new home listings that came on the market last week. That is a small bump over the number that went pending last week. That said, home inventory remains relatively tight across most areas of Maui.

The land market only saw 5 new listings. That is less than the 6 pending sales last week. Overall, the land market is seeing a net increase in inventory, but it has not been substantive enough to impact pricing.

A Couple of Big Picture Comments

It is worth noting that the state has delayed the reopening of Hawaii to tourism. The mandatory 14 day quarantine will remain in effect through the end of August. With testing challenges and more widespread outbreaks on the mainland, the state will need more time to ensure a safe reopening.

Its unclear what the net impact of the delayed reopening will be on the real estate market. It will have an impact on the local economy. Some vacation rental condo owners will feel a little more pain as it postpones a resumption of income. For some thinking of relocating to Hawaii because it feels like a safe haven, the delay may heighten Maui’s appeal. Prognosticate with certainty at your own peril.

Contact The Maui Real Estate Team

Our office continues to remain busy helping buyers and sellers close transactions. Contact the Maui Real Estate Team if you are thinking of buying or selling property on Maui. We welcome the chance to connect and learn more about your needs.

Pete Jalbert

Maui Real Estate Blog

Weekly Maui Real Estate Market Update July 10, 2020

This week marked the first time since the start of Covid-19 that pending sales outpaced pending sales during the same seven day period of 2019. Closed transactions dropped a bit this week. While more new inventory came to market than at any other time since the start of Covid-19. Find out more details in the paragraphs below.

This Week’s New Pending Sales

New pending real estate sales by property type in Maui County during Covid-19
New Pending Real Estate Sales in Maui County, Hawaii by Property Type During Covid-19

Maui Realtors reported 62 new pending sales over the first seven days of July. That is an 11% increase over last week and a 7% increase over the same seven day period of 2019. While many mainland markets have been seeing higher sales volume than normal, this is a first for Maui in the age of Covid. This is also the highest weekly total for new pendings since late February and Early March.

Notable Numbers from this Week’s Pending Sales

  • This week’s 62 new pending sales include 38 homes, 18 condos and 6 lots.
  • The 38 new pending home sales is a high water mark for the Covid-19 period. The home market continues to be stronger than other market segments on Maui reversing recent pre-Covid trends.
  • Of the 18 condos that went under contract, 4 were vacation rentals and 2 were resort area condos that prohibit short term rentals. Vacation rental condos have outpaced condos that prohibit short term rentals during Covid. However, this is two weeks in a row where vacation rentals lagged behind other sales.
  • The 6 new pending lot sales ties last week’s number. I cheated and looked at sales activity to start the latest cycle and there are 4 more pendings over the last 3 days. It seems like demand for vacant land may be growing.

This Week’s Sales Numbers

Weekly Real Estate Sales in Maui County During Covid-19
Weekly Real Estate Sales by Property Type in Maui County During Covid-19

Maui Realtors reported 27 sales last week. That is a steep 49% decline from last week and 44% down from last year. I wouldn’t read too much into those numbers as there typically are more closes in the last week of June than the end of July. Also, while the general trend was an increase in pending sales through May, there were fluctuations up and down. I would expect sales to fluctuate similarly.

This Week’s New Inventory

Weekly New Inventory in Maui County during Covid-19
Weekly new inventory by property type in Maui County during the the Covid-19 Pandemic

Maui Realtors brought 94 new listings to market in the first seven days of July. That is 45% more than last week and 45% more than the same seven days of 2019. This was a big week for new listings although the number is a little inflated by a couple of agents that changed brokerages. When that happens an old listing will show as new with the brokerage change. A total of 9 new listings fit that criteria.

There were 35 new home listings this week. While that is the largest weekly total for new home listings on the graph above, it is still less than the number of homes that went pending this week. Home inventory remains tight on island thanks to healthy levels of demand.

The 50 new condo listings is the second highest number of new condo listings in the chart above. It is well above the number of condos that went pending this week. This means increasing inventory. It seems to be a trend at this point with more condos coming onto market than those going under contract.

We talked to an appraiser this week and he said he hasn’t seen anything to suggest that condo prices are dropping anywhere. That said, we are seeing inventories increase in some complexes giving buyers more options and potentially a little more leverage. There are also condo developments where inventory remains pretty tight. There are variations in market conditions by price point, location and development.

Land inventory is slowly ticking up. Although there is a slight uptick in demand over the last couple of weeks. While land inventory will be something to watch going forward the market does not appear to be too saturated. It is also worth noting that the land market seems to be slower to shift on pricing. In general, a lot of lots are owned outright as opposed to mortgaged. In the last year, over 60% of the lots sold were purchased with cash. With lower monthly overhead, my experience is that many land owners can hold out longer.

Contact The Maui Real Estate Team

Our office remains busy and active in these extraordinary times. That said, we welcome the opportunity to meet with new clients. Contact The Maui Real Estate Team if you are thinking of buying or selling property on Maui. We would welcome the chance to talk, e-mail, zoom, Facetime or meet in person to learn more about your real estate needs. We look forward to being of service.

Pete Jalbert

Maui Real Estate Blog

Maui Real Estate Market Update July 3rd, 2020

The Maui Real Estate market showed another strong week of buyer demand to close out the month of June. Weekly pending sales hit a new pandemic era high. Meanwhile sales levels are continuing to rebound as we move past the influence of low buyer demand in early April. Find out specific numbers and more details in the paragraphs below.

Weekly pending real estate sales in Maui County during the Covid-19 Pandemic.
New weekly pending real estate sales in Maui County by property type during the Covid-19 pandemic. My seven day tracking period runs from Wednesday through Tuesday.

Maui Realtors reported 56 pending sales over the seven day period between June 24th and 30th. That is a 24% increase over last week’s pending sales. It is 14% below the same seven day period of 2019. This was the strongest week for pending sales since the seven day period from February 26th-March 3rd.

Notable Numbers from this Week’s New Pending Sales

  • The 56 new pending sales include 28 homes, 22 condos and 6 lots.
  • The 28 pending home sales ties the highest weekly number during the Covid-19 era.
  • Last week, I noted that it was a particularly slow week for non-vacation rental condos with only 3 new pending sales. I cautioned about reading too much into that number. I feel somewhat vindicated as non-vacation rental condo activity rebounded this week. There were 12 new non-vacation rental pending sales.
  • The six pending land sales is the highest seven day total since the period between March 4th and March 10th.

This Week’s Real Estate Sales

Weekly Real Estate Sales in Maui County by Property Type During Covid-19
Weekly real estate sales by property type in Maui County during the Covid-19 Pandemic.

Maui Realtors reported 53 sales last week. That is 66% more than the week prior yet 22% below the same seven day period last year. The 53 closed transactions is the highest seven day total since the last week of March. This can be attributed to two things. First and foremost, sales are a lagging indicator. Some of the low sales totals we saw in May and June were due to low buyer demand in April. The current sales total reflects the impact of stronger buyer demand and increased new pending sales in May. The other factor is that the last week of June is traditionally a strong week for sales with the 30th being particularly strong. That was true of the last day of June this year with 18 transactions closing in just that one day.

This Week’s New Inventory Numbers

Weekly New Inventory During Covid-19 in Maui County, Hawaii
Weekly new inventory by Property Type in Maui County during Covid-19

A little less new inventory came on the market compared to recent weeks. Maui Realtors listed 65 properties this week. That is 8% below last week and 7% below the same week last year. There was more new condo inventory than other property types with 33 new listings. The 27 new home listings was slightly lower than the 28 homes that went under contract last week. The 5 new land listings are a little below the 6 pending transactions that happened last week.

Overall, inventory remains relatively low on island. Home inventory is below the same period last year. Demand for homes is higher than other property types. This is sustaining and even increasing home prices modestly depending on where you are on island and price point. The condo inventory is gradually increasing. Inventory levels are actually higher than the same time last year. While demand isn’t quite as strong for condos, as of now the balance of inventory vs demand is supporting market prices.

That balance between supply and demand in the condo market will be something I will be watching as the summer progresses. Will we see a continued growth in supply? What about demand? While a number of off island buyers are using tools such as video and 3D tours to purchase sight unseen, does the chance to see property first hand cause more buyers to pull the trigger? The extent to which the local economy is revived by the return of tourism is also likely to impact both the number of local buyers and the supply of inventory for the non-vacation rental condo market.

Contact The Maui Real Estate Team

The Maui Real Estate market is pretty diverse. While this post speaks to the overall market conditions, supply and demand vary by community, neighborhood and price point. Contact the Maui Real Estate Team if you are considering buying or selling property on Maui. We would welcome the chance to listen and learn about your real estate needs. We would also be happy to brief you on market conditions specific to your interests.

Pete Jalbert