Maui’s $3M+ Market Remained Steady Throughout 2023

Events on August 8th profoundly impacted Maui. We acknowledge the significant impact on those affected both directly and indirectly, and emphasize our ongoing support for our Maui communities. Due to the location of the fires, the $3M+ home market remained somewhat level throughout 2023. More luxury homes are coming on the market compared to the end of 2021 and 2022. The number of active listings at the end of 2020 of 96 is only 3 higher than the end of 2023. Compared to historical averages, luxury properties on Maui are selling quickly in just about 3 months. This time frame is slightly higher than 2022 which was 82 days versus 91 days in 2023, and is still well below the historical range of 150 to 200 days. Sales volume in 2023 was below 2021 and 2022, but higher than pre-2021 levels.

Median Sales Price

Both the median sales price and average sold price per square foot were down slightly in 2023. Median sales price was only down by -8% and the average price per square foot was down by -6.7%. The sold price to list price percentage was at 94%. The smaller impact of the events of August 8th, 2023 on the luxury market compared to the overall market can be best explained by where the fires were located compared to where most of the $3M+ properties are located on Maui.

Both the median sales price and average sold price per square foot were down slightly in 2023. Median sales price was only down by -8% and the average price per square foot was down by -6.7%. The sold price to list price percentage was at 94%. The smaller impact of the events of August 8th, 2023 on the luxury market compared to the overall market can be best explained by where the fires were located compared to where most of the $3M+ properties are located on Maui.

Days on Market

The average Days on Market (DOM) shows how many days, on average, a property is on the market before it sells. While some of the previous 12 months have been outliers, the overall trendline shows that average DOM is increasing. 2023 reported the average DOM as 58, an increase of +41.5% compared to 41 average DOM in 2022. This increase is a bit misleading. In 2021 the average DOM was 55 days and previous years were higher yet. Housing on average going under contract in less than 2 months is a sign of a strong market.

Months of Inventory

Months of inventory signifies the time it would take to sell all current listings at the current sales pace without new listings. The current months of inventory on Maui is 3.7 months, a +23.1% increase from 3 months in 2022.

Forward Outlook

Due to the events of August 8th, parts of Maui have been profoundly changed. In the immediate aftermath of the fires, concerns arose about the future of the Maui real estate market. These initial reactions, while rooted in a genuine sense of uncertainty, have proven to be more cautious than necessary. We acknowledge the significant impact on those directly affected and emphasize our ongoing support for every individual impacted. Despite the challenges, the fires touched only a limited area of the island. The larger part of Maui has remained resilient, showing signs of a rapid return to normalcy in real estate activities. The market is now experiencing positive developments: declining interest rates, rising inventory levels, and strong median sales prices, setting a promising stage for 2024.