Maui Realtors reported another busy week for buyer demand over the seven day period between August 5th and August 11th. Sales activity tied the week prior for the busiest week since late March. New inventory ticked up over this last seven day period, but there appears to be a growing divergence in the amount of new inventory by property type. Find out more details below.
This Week’s New Pending Sales
Maui Realtors reported 62 new pendings over the seven day period between August 5th and August 11th. This seven day period ties the first week of July for the busiest week of buyer activity since the start of the Covid-19 pandemic. It is almost a 9% increase over the week prior. It is just under 35% more activity than the same seven day period of 2019. This is the third week in a row that 2020 pending sales exceeded the same seven day period of 2019.
Notable Numbers from the Pending Sales Activity
- The 62 new pending sales include 22 homes, 31 condos and 9 lots.
- This is now four out of five weeks with condo pendings outpacing home pendings. This is a reverse of what we saw through the first three and a half months of the pandemic. Scarcity may be reason for fewer homes going under contract with inventory low. We may also be seeing more buyers responding to price adjustments in the condo market. I can’t say definitively.
- Of the 31 condo pendings, 18 are located in developments that permit vacation rentals. It is worth keeping in mind that we have very few visitors on island and tourism reopening is looking more likely to be delayed past September 1. It is likely that most of these purchases are sight unseen.
- The nine new lot pending sales over the seven day period are a new high during the pandemic. I think that number may need an asterisk though. Three of the new pendings are in a Kula development where the developer reserved a number of the lots for himself. These properties went under contract on the same day the developer raised the price of these lots 18%. I am not one for conspiracy theories but…
- One home and one condo priced over $2,000,000 went under contract over the seven day period. The two new pendings are in line with recent luxury real estate market activity levels.
This Week’s Closed Transactions
Maui Realtors reported 65 sales during the seven day period between August 5th and August 11th. That is the same number as last week, and a 38% increase over the same seven day period of 2019. Last week’s sales continue to reflect the higher buyer activity in June. The numbers also received a slight bump due to four new developer closes. Those closes were all based on contracts originally written in 2019.
This Week’s New Inventory Numbers
Maui Realtors brought 73 new listings to market between August 5th and August 11th. That is a modest 1% bump over new listings during the week prior and a 38% increase over the same seven day period of 2019.
Of the 73 new listings that came to market, 52 are condo listings. Of the 52 condo listings, 36 are in developments that permit vacation rentals. While buyer activity is up in the condo market over the last month, the inventory continues to grow with more properties coming to market.
Owning a vacation rental condo comes with overhead. Vacation rental income helps offset that overhead. As of now, it has been over four months since any of these owners earned rental income to help offset these costs. At this point, it is inevitable that our reopening for tourism is going to be delayed past the current scheduled date of September 1 based on the state of affairs with Covid-19. With no immediate relief in sight, the increase in inventory should continue.
The increased inventory started to impact values at some vacation rental friendly condos over the last month. At this point, the increased inventory and the downward price pressure are not universal. Some developments still have scarce inventory and those developments are holding values. This continues to be a market worth watching.
On the other end of the spectrum, the inventory of homes listed for sale is tightening. Maui Realtors only brought 14 homes on the market between August 5th and August 11th. That is the lowest number of weekly new home listings since April. Low inventory levels are supporting values and in some areas increasing values.
Nine new lot listings came to market between August 5th and 11th. That is the same as the number of lots that went under contract over the seven day period. Land market values seem to be holding steady to modestly increasing with inventory levels holding steady to slightly decreasing.
Contact The Maui Real Estate Team
The Maui Real Estate market remains resilient albeit increasingly complex. Different parts of the market appear to be taking different trajectories. The home market is holding steady while growing inventory is beginning to impact the condo market. That said, there is variability within the different property types based on price point and location. With all of that in mind, market knowledge and good representation remain important. Contact The Maui Real Estate Team if you are thinking of buying or selling property on Maui. We welcome the chance to listen and learn about your real estate needs.