Market Intelligence: Insights on South Maui’s Historic Seller’s Market
It’s hard to believe that we’re already in Q2 of 2022! And the data from Hawai’i Life’s Q1 2022 Report reveals that faster sales are fanning the flame of an already hot seller’s market. Let’s take a look at some of the key insights from the Q1 2022 report, with regard to South Maui’s historic seller’s market:
Rising Interest Rates Drive New Home Purchases
If the pandemic taught us anything, it’s that there is no crystal ball allowing us to forecast what will happen in a year. For the moment, however, interest rates and inflation are going up, the stock market is unstable, and the impact this is having on the South Maui market is undeniable.
Rising interest rates will likely continue throughout the remainder of 2022 and possibly into 2023. In recent months, this reality has motivated more people to purchase a new house in an effort to lock in a mortgage rate that is lower.
Low Inventory Fuels Higher Sales Prices
According to the Hawai’i Life Q1 2022 Report, inventory of homes for sale is at an all-time low. In the first quarter of 2022, the inventory of homes for sale decreased by 16% compared to March of 2021. In March of 2022, there were 173 active residential listings on Maui. These numbers indicate just how low the inventory of homes have been, which may be pushing prices higher.
With fewer homes on the market, the average sales price for single-family homes in South Maui steadily grew to $1.63M during Q1 2022, a 1.6% increase that I attribute to the low inventory of homes for sale.
Drop in DOM Proves That Seller’s Market isn’t Weakening
While single-family homes were on the market for an average of 75 days at this time in 2021, sellers didn’t have to wait around that long this quarter. The average DOM in Q2 2022 is down to 41 days, a trend that further confirms the strength of the seller’s market.
Buyers are just as attracted to Maui’s gorgeous sunsets, friendly people, farm-to-table restaurants, and accessible beaches as ever. As far as specific areas in South Maui, I can tell you firsthand that people are continuing to choose Wailea, Makena, and Kihei, because of the lifestyle. These South Maui areas are world’s away from the hustle and bustle of city life, without being too far from stores and activities.
To produce a favorable outcome for clients, we as real estate professionals have to stay on top of changes in the market. That means going deeper than just keeping an eye on the quarterly reports for Maui. For me, it means recognizing that what’s impacting the South Maui market may not be as influential on the West Maui or Central Maui markets. And it means picking up on the nuance between the luxury space and the mid-priced market.
If you’re looking to buy, invest, or learn about what this quarter’s data means for you as a homeowner, reach out to me via cell, text, or email today!