Maui Real Estate Blog
Weekly Maui Real Estate Market Update August 22, 2020
Maui Real Estate activity was a little quieter over the seven day period between August 12th and 18th. New pending sales dipped. Closed transactions went down substantially. Listing agents were busy though with lots of new condo listings coming to market. Learn more details about this week’s numbers in the paragraphs below.
This Week’s Pending Sales
Maui Realtors reported 52 new pending sales between August 12th and 18th. That is a 16% drop in buyer activity from the week prior. It is a 2% increase in activity compared to the same seven day period of 2019. This is the fourth week in a row when 2020 pending sales exceeded the same seven day period of 2019.
Notable Numbers From This Week’s Pending Sales
- The 52 new pending sales include 28 homes, 21 condos and 3 lots.
- In something of a shift, only 7 of the 21 new condo pending sales are located in vacation rental friendly complexes. Remember, one week does not make a trend.
- The 3 new pending lot sales represent a dip from recent activity. Again, I am reticent to read into one week’s activity.
- Activity increased in the luxury real estate market this week. There were 5 pending sales over $2,000,000 including 4 homes and 1 condo.
This Week’s Sales Activity
Maui Realtors reported 37 sales over the seven day period between August 12th and the 18th. That is a 43% drop in closings from the week prior. It is a 3% drop from the same seven day period of 2019. It was a particularly quiet week for condo and lot sales with only 12 and 1 closed transactions respectively. I am not sure that the quiet week of activity is indicative of too much other than variability in the market. Keep in mind, sales are a lagging indicator of buyer demand.
This Week’s New Inventory
Maui Realtors brought 80 properties to market between August 12th and 18th. That is almost a 10% increase over the week prior. It is a 20% increase over the same seven day period of 2019.
Of the 80 new listings that came to market, 58 are condos. Of the 58 condo listings, 35 are vacation rental condos. The growth in condo inventory continues. Whether it is due to lack of access or the pain of holding costs with no rental income, more vacation rental condo owners are choosing to bring their condos to market. As mentioned in recent updates, this increase in not universal across all condo developments. In those where the increase in inventory is more pronounced, values are starting to show some downward pressure.
The home inventory appears to be following a completely different trajectory than the condo market. Maui Realtors only listed 19 homes between the 12th and the 18th. That is well below the 28 that went under contract. The contracting home inventory is supporting and in some cases putting upward pressure on current market values.
Only 3 new lots came to market between the 12th and the 18th. With 3 lots going pending this week, active land inventory levels managed to stay steady. Overall, land inventory is slightly decreasing over the last month or two. The decrease in inventory is supporting current land values over most of the island.
Contact The Maui Real Estate Team
While this may have been a little quieter week for transactions on the island, Maui’s real estate market remains resilient. Buyers are taking advantage of the historically low interest rates. We also may be experiencing a bump from what Zillow CEO Rich Barton coined “the great reshuffling.” This is a nationwide trend towards remote work. Some buyers are taking their companies offer to work anywhere as an opportunity to work from Maui. Contact The Maui Real Estate Team if you are thinking of buying or selling property on Maui. We continue to work hard to meet the needs of buyers and sellers during this unique time. We look forward to our first conversation to learn more about your real estate needs.