Maui Real Estate Market Update July 31, 2020

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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.

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