It has been a minute, several minutes in fact. For those of you who we haven't had the opportunity to connect with, Barb and I did lose our home, as did all of our neighbors at our beloved Aina Nalu. Aina Nalu was only 1 of 10 condo complexes in Lahaina that were totally or partially destroyed by the fire. Dickenson Square, right across the street from Aina Nalu, where our office was located, was also destroyed. So, needless to say, we've been feeling rather displaced and a little off balance.
The agents of Aloha Group wasted no time in recognizing that the needs of our keiki, especially the mental health needs, needed more support. They immediately started raising funds and quickly began distributing funds to the kids and their families. Follow this link for more about the Keiki Fire Relief Fund.
We also continue to be thankful for all the volunteers that have come from near and far to help however they can, and there have been so many of you! There are still so many unknowns, and our idyllic life as we knew it has been irrevocably changed, but time waits for no man, so we put our chins up and continue.
On the brighter side, we are in our new condo in Kihei, and we just put the finishing touches on our office. And no, I did not use any curse words while putting together our chairs or desks.
Though we feel a bit far from our community and Lahaina is still home; we are so grateful to have a place to hang our hats. There are so many who are still looking for a semi-permanent roof, and many who are feeling like they many have to move off island, if only until we can start rebuilding. Emotions are still all over the place, particularly as more and more people have been allowed into Lahaina and are able to sift through the ashes of their home. Grief at what was lost, but glimmers of joy at small treasures and memories that were found. The Banyan Tree has become a beacon of hope; it continues to sprout green leaves and thrive beneath the layers of devastation.
The great news is that the rest of Maui is open! Kapalua to Kaanapali, Central Maui, East Maui and South Maui are all welcoming visitors with open arms.
So, what is real estate doing on Maui?
Sales are the number of properties that actually closed escrow. These properties likely went under contract anywhere from 2 to 8 weeks before closing.
At above 7%, interest rates are the highest level they have been in 23 years, causing some buyers to delay their home purchase and wait it out. On the other hand, inventory is still low causing some buyers to want to hurry to purchase a home or second home.
Maui real estate is still sitting in the Seller's Market category, but as it stands, 56.1% of homes sold in the last month were sold at below asking prices; which seems to indicate that selling prices were too high or some sellers were impacted by the fires in August? However, considering the median sold price on a home is up 18.6% since September 2022, sellers are still able to sell at higher prices.
Inventory tells us how many units are available for sale in each category.
In December of 2022 and January of 2023 there were 271 homes for sale which steadily dropped off to 187 homes for sale in August. However, and somewhat surprisingly, considering the market and the fires, inventory increased to 212 in September, which isn't too far off from the 236 that were listed for sale in September of 2022.
Inventory for condos, which is still low, has been fairly steady throughout this year, but has had a significant increase compared to the 155 listed for sale year to date. Inventory fell in August, again not surprisingly, but like home inventory, increased in September.
Pending Sales represent properties that are under contract but have not yet closed. Pendings are the pipeline that tell us how many sales are likely to happen in the next couple of months.
Pending sales are down for both homes and condos in September, which is not surprising in the wake of the August fires across the island. Not only Lahaina was impacted; there were fires in Kula in Kihei. We expect October numbers to mirror that performance due to the disruption and impact on the island economy.
SELLING PRICES: average and median sold price
We look at Average and Median prices in all categories. A lot of people like to know the average price; however, we tend to use median for most of our analysis, because the median is less likely to be skewed by outliers of a few very high priced or very low-priced sales.
Nationally, home prices were up 4.6% from last year according to FHFA Purchase Only House Price Index. On Maui however, the median selling price of $1,294,500 for homes is up 27.3% from this time last year. That's about how I feel every time I buy groceries.
The median selling price for condos at $789,500 is down 1.3% for September 2022. Which considering many of our condo sales came from Lahaina that doesn't seem too bad a number. We do expect it will continue to drop when compared year-over-year.
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Overall, we remain positive that the Maui market will stay strong, though not without some bumps along the way. There have been a surprising number of new listing in the last week (23 new homes, 25 new condos) and we continue to meet with folks who are interested in listing their property. Buyers may have less competition now because there is less activity on the island.
We are here to help and would appreciate the opportunity to assist anyone who wants to make a change, whether buying or selling, in this shifting market.
Get more information and details
To get more information on property and trends, you can search all properties listed for sale at www.AlohaGroupMaui.com. If you can’t find what you’re looking for there, send us an email to email@example.com, and we’ll do our best to get an answer for you. As we get more requests for information, we’ll add new sections to the website, newsletter or both.
About Aloha Group Maui
Aloha Group Maui was founded by L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. Our team consists of talented professionals; Cheri Miller R(S), Suni Novotny R(S), Keri Nicholson R(S), Myra Plant R(S), Anthony Freda R(S), Courtney Stice, R(S), Kathy Becklin, R(B), Heather Zidell, R(S), Magdalena Odonnell R(S), Sarah Twitchell R(S), and Tony Brown R(B). We are businesspeople, and we treat our clients with the same care and service attitude that we would like to receive when we do business. We are in business for pleasure and profit. We expect that most of our clients will enjoy the property they own in Maui (pleasure), and it would be nice for everyone if your property performs well for you (profit). Real estate can be highly speculative, and profits are never guaranteed. So if you are buying property in Maui, it’s a good idea to surround yourself with a professional team.
Lee Potts is the former President of an international software company and former Marketing VP of a publicly traded franchise organization. Lee and Barbara are both licensed under Keller Williams Realty Maui.
Barbara Potts was a CPA with Ernst and Young before joining Apple Computer back when both Steve’s were there (Jobs and Woz). She was also Director of Strategic Marketing for Grass Valley Group, a division of Tektronix, and a business broker in California.
Copyright 2023 L. Lee Potts
Statistical information in this newsletter is based on actual sales information reported to the Realtors Association of Maui, Inc. While this information is deemed reliable, it is not guaranteed. This newsletter is for informational purposes only and not intended as advice for investment or any other purposes. Real estate is considered to be highly volatile, and purchasers and sellers of real estate should always seek expert outside advice before investing.