Maui Real Estate Blog
Maui Market Update May 29, 2020
Somehow in this strange time space continuum that is the Covid-19 pandemic, another week passed. Once again, that means its time to take a look at the weekly real estate activity in Maui County. This week’s numbers are almost identical to the numbers from last week. Keep reading for more of the details.
Maui Realtors reported 32 pending sales in the seven day period between May 20th and May 26th. That is the same number of pending sales as last week. It is 49% of the 63 pendings from the same seven day period last year.
Having followed Maui real estate statistics pretty closely over the last seventeen years, I am reticent to read too much into a couple of weeks of data. That said, the chart above isn’t looking like a V shaped recovery. It is looking a little ragged if it is a check mark shaped recovery. It will be interesting to see the the numbers of the next couple of weeks to see if anything resembling a trend emerges.
Some Notable Numbers from This Week’s Pending Sales
- The 32 pending sales broke down into fifteen pending home sales, 14 pending condo sales and 4 pending lots.
- Pending home sales have outpaced pending condo sales for all but one week since the stay at home orders.
- This is three straight weeks where pending home sales are down from the week prior. I am reticent to read into this too much as of yet. That said, this will be something to monitor going forward.
- The vacation rental/second home condo market continues to outpace the non-vacation rental condo market. Eight of the thirteen pending sales are in complexes that allow vacation rentals.
- The land market continues to fluctuate. The four pending sales for the week is tied for the most since the start of stay at home orders. This comes after zero pending lot transactions the week prior.
This Week’s Closed Transactions
Only 16 transactions closed in the seven day period between May 20th and May 26th. That is one fewer transaction than last week. It is 20% of the 80 transactions that closed during the same seven day period of 2019. These two weeks reflect the really slow pending sales of late March and April. I would be surprised if we don’t start to see an increase in closings either next week or the week following.
A Quick Look at Inventory
Last week’s post looked at the number of new listings since the pandemic. I would like to put together charts showing weekly new inventory since the start of the pandemic, but I am limited by time constraints. I may try to address that on a future post. That said, new listings continue to lag behind last year’s numbers. There are 204 new land, condo and home listings for the month to date. Last year, there were 254 new listings over the same period. That is a 20% drop in new listings.
While the drop in listings is less than the drop in pending sales, it is worth noting that inventory levels were pretty constrained prior to the start of the pandemic. There is another point worth consideration. Quite a few sellers pulled their property from the market since the start of Covid-19. Since March 1, 2020, 364 sellers pulled their listings off the market. Over the same period of time last year, 249 sellers pulled listings off the market. That is a 46% increase. While inventory is growing, there is far from a glut of properties for sale.
The Big Picture
There were a couple of significant announcements related to the local economy over the last week. As of June 1, medium risk businesses will be opening on Maui. That includes restaurants with reduced capacity, fitness centers, and most county parks. As of yesterday, the governor indicated that the mandatory 14 day quarantine for inbound visitors will be extended through at least July 1.
The announcements over the last week points to a local economy that will be opening some, but the main economic engine of tourism will remain throttled for at least another month. I don’t think I am going out on too big of a limb by saying that a lack of tourism will continue to constrain the island’s second home market. While some second home buyers are comfortable with the current norm of sight unseen purchases, not all buyers share that sentiment.
The Maui Real Estate market continues to see activity albeit at reduced numbers. With still no tourism and a struggling local economy, it speaks to the desirability of a home on Maui. We live in a special place. There are local residents who still desire a home to call their own. There are off island residents who still want a place for when it is safe to fly back to Maui. Contact The Maui Real Estate Team if you are thinking of entering the Maui Real Estate market. We look forward to be of assistance.