May is one of the best months to be in West Maui because of its perfect weather. Similarly, it seems to reflect one of the best months for home sales, according to the Realtors Association of Maui (RAM) report.
West Maui remains one of the best luxury spots for a grand Hawaiian residence or vacation resthouse. That is why there’s never a shortage of robust buyers who are also aware of the low mortgage rates. Various properties are available in the area, from single homes, condominiums, vacant land, beachfront, or oceanfront real estate.
Sales prices are surging because the demand outnumbers the market supply. And for this month of this year, condominium sales are soaring, reaching record highs of 346.3% closed sales. The best way to learn more about the increasing interest in condos in the area is to talk to a Maui realtor because they can direct you to the best sites for these properties.
Maui continues to be a very healthy real estate market, which also means it is an area of profitable business ventures. This month, there is a total closed sales of 292.3% increase in all properties and a 1.3% increase in the median sales price in all properties. The real estate market is selling fast in this area of Maui as the total number of homes for sale drops to 55.5%.
If you ever want to own a property on Maui, the healthy market trend is enough to tell you that people are buying fast, and you just might run out if you don’t start looking. Here’s a rundown of the real estate trends for May in Maui, courtesy of RAM, to give you a better overview.
Maui market highlights of May 2021
There is currently a limited number of existing properties. It is up to the home builders to meet the increasing demand in the real estate market in the Maui area. Here’s a quick look at the real estate numbers.
Why are they buying? Condominiums are flexible, convenient, and easy to maintain living spaces that are high in demand as rental or vacation homes. These have become high in market demand as the median sales price dropped this month to $615,000 from $680,000 last April, a 9.6% drop. However, the limited number of properties for sale may change the trend. Property prices may still increase depending on the coming trends.
- New listings increased from 138 last month to 155 this May, a 12.3% increase.
- Closed sales increased 346.3% from a mere 54 last month to a whopping 241 this month.
- Pending sales are also promising, with a 231.3% increase, from 64 in April to 212 this May.
The number of days the property stands on the market until sales also decreased from 166 to 146 days. People are buying, and condos in Kapalua and Kaanapali may just be the next booming real estate trend in the area.
Not to be overshadowed by the rising interest in condominiums, single daily homes remain strong and in demand. Their numbers remain steady with a good increase this month in sales and median price.
- New listings increased from 101 last month to 129 this May, a 27.7% increase.
- Closed sales increased by 188.1%, from a mere 42 last month to 121 this month.
- Pending sales have a 57.3% increase, from 75 in April to 118 this May.
Single-family homes sold slightly faster but at a steady pace, with days on the market decreasing from 136 to 135 this month. Interestingly, the increase in median sales price, from $800,000 last month to a considerable boost to $1,039,000 this May. Average sales price also increased to $1,739,177 this month, a 35.1% increase from just last month.
Supply and demand
In the RAM report, one thing is highly noticeable—the significant decrease in inventory of homes for sale and months supply of inventory for both condominiums and single homes. Here are the numbers:
- Inventory of homes for sale – From 440 to 203 this month, 53.9% decrease
- Months supply of inventory – From 5.3 to 1.8, 66% decrease
- Inventory of homes for sale – From 593 to 224 this month, 62.2% decrease
- Months supply of inventory – From 5.4 to 1.4, 74.1% decrease
The numbers of inventory are significantly low, dropping to more than half. While it is an excellent number for sellers and realtors because it means the sale rates are surging, it is disturbing because there will be fewer properties to sell in the coming months. According to RAM reports, this decrease in supply may continue in the coming months due to many factors.
One is due to the increase in construction materials and labor rates in the area, making it difficult for builders and contractors to take on projects at this time. Because of the pandemic, it is challenging to acquire materials, with many establishments closed down, causing changes in the supply chain. These increases in materials and labor costs will be passed down to buyers, increasing property costs, making it very difficult to sell.
As the restrictions also ease this pandemic, more real estate agents will be running about, and competition will be more challenging. There will be more sales but low availability of existing properties, which will further decrease the supply and inventory of homes in the coming months.
This early on, it is best to get in touch with experienced Maui luxury Realtors in the area to see what remains of the existing properties for sale. Also, be on the lookout for developers planning to build in the area.
The best locations to look into first would be the Kapalua and Kaanapali areas, where the best seaside views are located. West Maui is one of the best places to live in the world. It’s not surprising more and more people are clamoring to get to their own property in the area.