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
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
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
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.