Aloha, this is Lahaina Lee and this is your Maui real estate advisor May edition.
Well, things have been hot here on Maui, and not to make light of a bad situation, but fire season has officially started here. During the week of May 9, there were several incidents, the largest being a 30 acre burn area near the Veterans Highway, which is the highway from Kahului down to Kihei. Needless to say, high winds and fire make a lot of us very nervous.
The housing situation on Maui is still kind of upside down. The Maui News reported that the non-congregate FEMA sheltering program has been extended to June 10. According to the report about 85% of individuals and families have successfully transitioned out of the program. However, that still leaves about 600 families and more than 1,500 people in the program that have to be transitioned out.
At about the same time, Civil Beat is reporting that FEMA is still spending millions of dollars on nearly 500 empty condos, apartments, and houses.
There are obviously some serious disconnects here. One big issue for people who lost their homes, but are still staying and working on the Westside, is that potential housing on other parts of the island simply isn't doable for them.
I was talking to a food and beverage manager at one of our Westside restaurants he told me they were losing one of their good employees. This fellow has a low paying job and the only place available for him, that he can afford, is going to be on the south side of the island. Now you, especially those of you who live on the mainland and have a commute, might think commuting form Kihei to Kaanapali doesn't sound like a really big deal. However, if you don't have a car, and you're dependent on Maui's public transportation or riding your scooter back-and-forth over the Pali two times a day, sometimes in the dark, its just not a solution that's going to work.
In another case, a young woman that we know who works on one of the boats that goes out of Kaanapali found her own housing in Kihei. She had a car and did the commute six days a week. Her gas bill running $150, she was finally fortunate enough to find something on the Westside.
There have finally been some new housing starts for "affordable" housing. Some of it is making very good headway, but we are clearly on a timeline here.
As a solution to this situation, Maui Mayor Bissen, has announced he is putting a bill that would repeal the right of Minotoya condo owners in both West and South Maui to do short term rental. This proposed bill faces plenty of opposition and even if passed would not begin to go into effect for over a year.
There are so many logical, financial, and certainly, emotional reasons that this will not be a solution. However, we will do a separate podcast on that topic coming to you soon.
In the meantime, how is all this affecting the real estate market on Maui? Well, let's look at the numbers.
In April, home sales remain strong with 69 closings. That's down a little bit from last month, but it is still the second most closings since June of last year.
The inventory of homes for sale remained flat with slightly fewer for sale in April than in March. Hovering at just over 260 homes for sale, that's higher than any other time in the last year, except for March. The stronger inventory level is being supported by new listings. The new listings are up 22.5% in 2024 over the same time in 2023.
That's the good news, and if you are a seller, that is still the good news. For buyers, the months of inventory level is still below four, which keeps us firmly in the seller's market.
After a good increase in March, selling prices remained strong. In April, the average home was selling for over $1.8 million, and the median price was maintaining its level at an even $1.3 million.
To give that a little more statistical context, the median price for the first four months of 2024 is up 13.3% over the same time frame in 2023. Given the current low levels of inventory, I do not see prices easing in the foreseeable future.
So, what's happening with condos?
Condo sales exceeded 100 units for the first time since August. Sales have been quite strong with more than 90 units selling in each of the last five months, except for February.
It appears that condo sales are being aided by rising inventory. Condominium inventory bottomed out back in August with just over 184 condos for sale. In April, we reached 518 condos for sale, which is an increase of about 260%. New listings are up 40% over the same time last year on a year to date basis. That is a huge injection of inventory. But, with increased sales, we still have under five months of supply.
Even though the market still slightly favors sellers, at least according to rules of thumb, you would think that big jump in inventory would have an impact on selling prices. However, the median price for condos is up 8.4% in April over the same month in 2023. Year to date, through four months, selling prices are up 7.3%. Average selling prices all out of whack due to some rather large closings way down in Makena.
So, despite what we read in the papers, specifically tourism is done, prices are too high, Maui condos are still in high demand and prices have continued to rise. Most of us have been of the opinion that the unfriendly position of the Maui government would have an effect on the value of condos on Maui. Clearly, people are concerned based on public opinion, but that is not being reflected in prices at this point.
So take that County Council.
That is this months snapshot of real estate on Maui. We will keep you updated on trends and posted on developments here on everyone's favorite island.
If you have questions or comments, drop them in comment section down below. If you have answers, don't wait. Call me.
We'll see you next month and remember, nobody knows real estate on Maui like Aloha Group Maui.
From Kihei, this is Lahaina Lee saying ALOOOHA.
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 lee@alohapotts.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.
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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), Keri Nicholson R(B), Anthony Freda R(S), Courtney Stice, R(S), Kathy Becklin, R(B), Heather Zidell, R(S), Magdalena Odonnell R(S), Sarah Twitchell R(B), 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 2024 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.
