The real estate report from the Realtors Association of Maui for March 2021 showed the increased sales activity in this part of the island. This positive trend is due to two significant reasons – normal spring and the relaxing of COVID-19 protocols. March has been very busy in the West Maui real estate market as the demand for properties increased exponentially despite the rising mortgage rates as well as the prices of homes. People who sell their homes remain low along with new construction activities.
West Maui Real Estate Market
As anticipated, the real estate market in West Maui grows strong when it comes to the median sales price and total sales of properties, especially in Kaanapali and Kapalua. The huge demand for luxury homes in these parts of West Maui continues dramatically, thanks to dreamy locations and other perks.
However, the increasing cost of lumber and other construction materials and the backlog of the supply are delaying the home building activities. Hopefully, the current demand for luxury homes and condos will continue to balance the market in the coming months. The option of utilizing 3D printed homes and several new methods of construction are being eyed as alternatives. However, it remains to be seen if it will make an impact in West Maui markets.
Key takeaways in March 2021 RAM report
The statistics show the following significant figures for the West Maui real estate market.
- A positive 47% increase in the number of Closed Sales of all available properties. It showed 391 sold properties compared to 266 sold in the same period last year.
- A positive 19.8% change in the number of Median Sales Prices of all properties. It reflected the median selling price of $779,000 compared to last year’s March selling price of $650,000. The median selling price of Single Family homes increased by 17.4% or at $980,000, while the Condos median selling price increased by 15.3% or at $640,000.
- A positive 29.1% growth rate in the Average Sales Price of Single-Family homes or at $1,552,328 from $1,202,852 during the same period in 2020. In the condominium market, the Average Sales Price in March was positive 24.8%, from $784,442 last year to $978,643.
- The New Listings increased 48% for Single-Family homes as 48 properties were sold. For condo properties, there was a -4.5% with 170 sold units compared to 178 units sold in March 2020.
- Pending Sales showed positive 137.7% for Single-Family homes and about 414.8% for Condominium properties. 149 Single-Family homes were sold compared to 145 during the same period in 2020 and 278 Condos compared to 54 units sold in March 2020.
- The Days on Market until sale decreased 10% for Single-Family properties and 2.7% for Condos. From 130 days in March 2020, the days decreased to 117 for Single-Family homes. For Condos, the days decreased from 150 to 146 this year during the same period.
- The Housing Affordability Index represents the capability of people to buy properties in the region. The higher the figure, the greater is the opportunity to qualify for median-priced homes under the prevailing interest rates. In the Housing Affordability Index, there was a 6.8% reduction for Single-Family homes from 44 last March 2020. There were only 41 during the same period this year. For Condominiums, the 6% reduction rate amounted to 63 this year compared to 67 during the same period last year.
- The Inventory of Homes for sale decreased 54.1%, with only 221 from 421 during the same period in 2020 in Single-Family homes. For Condos, there was a -37.7% reduction from 576 in March 2020 to 359 during the same period this 2021.
- For Months Supply of Inventory, RAM’s report showed a negative 60.4% for Single Family homes with only 2.1 compared to 5.3 during the same period in 2020. For Condominiums, there was a negative 43.5% or 2.6 this year in comparison to 4.6 in March 2020.
West Maui Luxury Real Estate
West Maui is your ultimate place to live when you want an island lifestyle amidst luxury. This paradise-like part of Hawaii is home to world-class resorts, golf courses, shopping centers, restaurants, and more. If you’re considering ownership of luxury real estate properties, the two best locations are Kaapanali and Kapalua.
Kaapanali condos showed a staggering 160% sales increase for single-family homes while there was a 230% growth rate in pending sales for condos compared to March 2020. The median sales price of residential homes in Kaapanali is at $2,400,000 after a 14.3% increase. There were 7 single-family homes sold in March or a total of $21,015,500. For condominiums, the median selling prices have shown a 0.3% increase at $925,000 per unit. The slight increase is almost the same in 2020. There were 24 units sold this March for a total of $34,012,000.
Kapalua’s high-end properties displayed a low of -56.3% in March 2021, while the months’ supply inventory of condos revealed a -73.5% reduction. Only one single-family property was sold for a price of $4,850,000. However, from January to March or during the first quarter, five single-family homes were sold compared to 3 properties in 2020. For condominiums, the first quarter has been robust with 24 closings or a 242.9% increase compared to 7 sold condominium sales during the same period last year. In March alone, 19 condo homes were sold for a total of $16,741,750.
Furthermore, there were eight lands sold in Kaanapali, amounting to $4,915,000 with a median sales price of $505,000. In Kapalua, one land property was sold for $850,000.
For hassle-free and fast transactions-from searching to signing documents of ownership, make sure to get professional help from trusted real estate agents. They are well-trained and experienced when it comes to matching your needs, budget, and preferences to available properties in West Maui. For more details, contact us today.