End of Year 2017 Sales Statistics
Sales and prices rise
But inventory is the story
“THIS IS NOT A DRILL”
Just a few minutes ago, someone asked me if the prices of homes in Maui are “going up?” That’s what he asked, but what he was really asking was if the value of his home is increasing.
It sounds like a straight forward question. After all, we get reports every month from one financial news source or another about housing and the median selling price of homes in the US.
The general answer is that the price of both homes and condos rose on Maui in 2017. However, the median selling price for a house rose 9% on the year, while the average rose only 6%.
The reason is simple. Houses selling at the lower price points are in short supply with high demand. Diminishing supply forces buyers who have the desire and the means to buy at higher prices. Buyers in this price range, more often than not, need a place to live, they need to buy something. So, the median price rises and it’s a seller’s market.
Houses selling at higher prices are plentiful. Many, but not all, of the buyers shopping for homes priced at $1,500,000, $2,000,000 and up are looking for 2nd homes and investment property. They would like to find a house, but there is usually no real urgency. They don’t need to buy a house. So, there is less demand and more supply, creating more of a buyer’s market.
So, the answer to my friend’s question is that prices for houses like his are moving up slightly, but at a low rate. In his particular area, Kahana, selling prices for higher end homes, $1.2 million and up in this area, are actually down.
Condos had a big year. Sales volume and average price percentage increases hit double digits. Inventory dropped over 36% compared to the previous year, and there is currently only 5 months’ worth of condos for sale.
Based on current inventory, it is a seller’s market for both homes and condos.
So, if you are looking to buy, be ready, be decisive, and have a good agent that knows the market and how to win – call us! If you are looking to sell – call us!
So, if condos are in short supply, why hasn’t this one sold yet?
The number of condo sales on Maui increased from 1,310 to 1,453, 11%, in 2017 over 2016.
The average price was up 10%, topping $700,000, and the median selling price climbed to over $450,000.
We averaged 121 sales per month in 2017. We currently have 660 condos for sale. That is just over 5 months’ worth of supply.
So, why hasn’t that one that you spotted (or have for sale) sold yet?
There could be a few reasons. The average length of time from listing to a closed sale, we call it Days on Market, dropped slightly throughout the year, but the trend reversed in December. We’ll have to watch that to see if it is a trend.
Other reasons usually come down to price, condition, issues within the complex or lease issues. We’ll take a deeper dive into those in another blog.
The hottest spot on the island for sales was Kihei with 580 sales on the year. That accounts for more the 1/3 of the total sales on Maui for 2017. Kihei sales were up 19% for the year and prices were up over 10%. There must be something about Kihei.
Compare that to the number 2 sales volume area - the West Side’s Napili/Kahana/Honokowai, which had 222 sales, down 6% compared to 2016. Prices were up by almost 5%, but that still lags the Maui norm.
Another big hot spot on Maui’s West Side is Kaanapali. Kaanapali sales were off significantly compared to the previous year, down 13.5%. The median selling price also fell by 11%. A lack of inventory is partially to blame, but the price point is more than double the prices in either Kihei or the Napili/Kahana/Honokowai area.
Lahaina and Kapalua round out the West Side, and both had rosier results than their neighboring areas.
Kapalua had a surge in sales, up 68% over the previous year. Kapalua properties likely got a boost due to their pricing. The median was off by 1.6% for the year.
Lahaina sales were up 4% on the year with prices up about 5%.
Three other noteworthy areas on the island include the resort districts of Wailea and Maalaea, as well as the more residential condos of Wailuku.
Wailea had an eye-popping 34% increase in sales and 7% median increase in prices.
It seems like buyers have finally discovered one of the best kept secrets and maybe some of the best values on condo-tels on Maui in Maalaea. Maalaea sales jumped 59% and median prices stayed flat.
Central area sales, specifically Wailuku, dropped on the year by just over 8%. That is primarily due to declining inventory. Prices still rose 8.5%.
Single family home sales up, but slowing
Prices are up and inventory is down
Single family home sales rose in 2017, but only by 2%. The median selling price hovered just under $700,000, an increase of over 9%, and inventory dwindled to just 549 homes for sale at the end of December. That is only 5.5 months of supply at the current rate of sales.
Of course, we like to look at the high end as compared to the more, um, affordable end.
There is good news for buyers. If you are looking for that one in a million luxury home there are lots to choose from.
The good news for sellers is that homes priced from $1.5 million and up are selling.
In 2017 there were 126 homes priced at $1,500,000 or more that sold. There are currently 236 in that price range for sale. So, at the current rate of sales, if nothing new came on the market, we wouldn’t get through all of the available inventory this year.
However, if you are in that price range, and your home has been on the market for a while, rest assured that sales are happening.
At the other end of the price range, the good news mostly favors the sellers.
The price point for the lower half of the homes sold last year was $695,000. There were, on average, 46 homes sold per month. There are currently 106 homes on the market listed in that price range. That gives us 2.2 months of inventory.
The good news for buyers in this lower price range is that there are some new projects for workforce housing and even market priced homes on the west side and Kihei coming to market. Some are selling now.
Starting with the most prominent luxury markets: Wailea/Makena was a winner, Kapalua was not and Kaanapali held even with 2016.
Wailea homes sales were up 16.7% in 2017 over 2016. The median selling price was up 16.5% on the strength of several sales in the $7,000,000 - $15,000,000 price range. However, the median slipped 26.6% from the previous year indicating the predominance of $2.2 million and under sales.
Kapalua sales slid 43%, and the average selling price dropped 28%.
Maui’s Central District of Wailuku and Kahului had 362 sales, accounting for over 1/3 of all home sales on Maui. In both locales the median price was up 7.5% to 9.3%. This is still the lowest priced major district on Maui.
Kihei posted another 190 sales, up 8% on the year with a median price increase of over 12%.
On the west side, Lahaina sales were down slightly, off 5.7%. The median price skyrocketed 43.5% from $766,500 to $1,100,000!
Sprecklesville/Paia sales tailed off as prices jumped 69% on the year. Makawao and neighboring Pukalani sales also dropped on comparatively small price increases of around 10%.
Rounding out upcountry, Kula stayed strong with a 23.4% increase in homes sold, but the median selling price was unchanged.
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Aloha Group Maui is a part of KW Island Living, the Keller Williams Maui franchise. We can help you buy, sell or exchange a home or condo - for you to live in full time, part time or as an investment. Learn more about Maui Real Estate in our Maui Real Estate 101 resources section.