This week marked the first time since the start of Covid-19 that pending sales outpaced pending sales during the same seven day period of 2019. Closed transactions dropped a bit this week. While more new inventory came to market than at any other time since the start of Covid-19. Find out more details in the paragraphs below.
This Week’s New Pending Sales
Maui Realtors reported 62 new pending sales over the first seven days of July. That is an 11% increase over last week and a 7% increase over the same seven day period of 2019. While many mainland markets have been seeing higher sales volume than normal, this is a first for Maui in the age of Covid. This is also the highest weekly total for new pendings since late February and Early March.
Notable Numbers from this Week’s Pending Sales
- This week’s 62 new pending sales include 38 homes, 18 condos and 6 lots.
- The 38 new pending home sales is a high water mark for the Covid-19 period. The home market continues to be stronger than other market segments on Maui reversing recent pre-Covid trends.
- Of the 18 condos that went under contract, 4 were vacation rentals and 2 were resort area condos that prohibit short term rentals. Vacation rental condos have outpaced condos that prohibit short term rentals during Covid. However, this is two weeks in a row where vacation rentals lagged behind other sales.
- The 6 new pending lot sales ties last week’s number. I cheated and looked at sales activity to start the latest cycle and there are 4 more pendings over the last 3 days. It seems like demand for vacant land may be growing.
This Week’s Sales Numbers
Maui Realtors reported 27 sales last week. That is a steep 49% decline from last week and 44% down from last year. I wouldn’t read too much into those numbers as there typically are more closes in the last week of June than the end of July. Also, while the general trend was an increase in pending sales through May, there were fluctuations up and down. I would expect sales to fluctuate similarly.
This Week’s New Inventory
Maui Realtors brought 94 new listings to market in the first seven days of July. That is 45% more than last week and 45% more than the same seven days of 2019. This was a big week for new listings although the number is a little inflated by a couple of agents that changed brokerages. When that happens an old listing will show as new with the brokerage change. A total of 9 new listings fit that criteria.
There were 35 new home listings this week. While that is the largest weekly total for new home listings on the graph above, it is still less than the number of homes that went pending this week. Home inventory remains tight on island thanks to healthy levels of demand.
The 50 new condo listings is the second highest number of new condo listings in the chart above. It is well above the number of condos that went pending this week. This means increasing inventory. It seems to be a trend at this point with more condos coming onto market than those going under contract.
We talked to an appraiser this week and he said he hasn’t seen anything to suggest that condo prices are dropping anywhere. That said, we are seeing inventories increase in some complexes giving buyers more options and potentially a little more leverage. There are also condo developments where inventory remains pretty tight. There are variations in market conditions by price point, location and development.
Land inventory is slowly ticking up. Although there is a slight uptick in demand over the last couple of weeks. While land inventory will be something to watch going forward the market does not appear to be too saturated. It is also worth noting that the land market seems to be slower to shift on pricing. In general, a lot of lots are owned outright as opposed to mortgaged. In the last year, over 60% of the lots sold were purchased with cash. With lower monthly overhead, my experience is that many land owners can hold out longer.
Contact The Maui Real Estate Team
Our office remains busy and active in these extraordinary times. That said, we welcome the opportunity to meet with new clients. Contact The Maui Real Estate Team if you are thinking of buying or selling property on Maui. We would welcome the chance to talk, e-mail, zoom, Facetime or meet in person to learn more about your real estate needs. We look forward to being of service.
