At mid-year, the median price for single-family homes and condos reached record levels fueled by limited inventory, increased competition, and low-interest rates. While many are wondering when this hot market will cool off, all signs point to it remaining consistently strong through 2021. As with any market, it is nearly impossible to time the top or the bottom, so those thinking about making a move should be prepared to act quickly and take advantage of any opportunities they see.
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Condos Bounce Back
Viewed unfavorably during the initial COVID-19 pandemic, due to their limited size and close proximity to others, demand for condos has bounced back nicely. For the first six months of 2021, condo sales doubled compared to the same period last year and have really picked up in recent months.
Scroll below to see current median price points of condos island-wide and click the various regions to view active listings.
Region Spotlight: West Maui
Compared to the first half of last year, West Maui home sales increased an astounding 114%. Combined there were 673 single-family home and condo sales in 2021 vs. the 314 sold in the same time period of 2020. Led by Kapalua, median home prices have increased 31.5% for single-family homes and 11% for condos.
Interest Rates Remain Low
Low mortgage interest rates are playing a big part in the housing market as the low rates benefit buyer purchasing power, which alleviates some of the pressures of increasing home prices for buyers.
- In June 2021, the average 30-year fixed mortgage interest rate was 2.98%. A year ago, rates were 3.16%
- Looking ahead, Freddie Mac has forecasted rates to average around 2.9% through the end of the year.
Sales for the Record Books
The luxury market is in high demand, as 59 single-family homes and condos sold for over $5,000,000. In the history of Maui real estate there have only been two sales over $20,000,000 in a year twice – first in 2018 and again in 2021.
Value of a Condo Bedroom
As buyers seek space, the number of bedrooms can be a huge selling point for many, especially in condominiums. When you consider if a condo is short-term vacation rental eligible, the difference is quite noticeable. It is important to remember, like the overall real estate market demand can vary greatly from building to building, unit stack to unit stack, and neighborhood to neighborhood.
A Seller’s Market
By definition, a balanced market has six months of remaining inventory, meaning that if no new homes came on the market and sales remain the same, the market would sell out in six months.
As of June 2021, Maui single-family homes have 2.26 months of remaining inventory, while condos have less than one month! Some relief does seem to be insight as the number of new listings has been creeping up in recent months, but more is certainly needed.
Why work with Coldwell Banker Island Properties
As the #1 real estate firm on Maui, and a market leader on Hawaii Island and Kauai, we know homes. Our network of over 400 agents spans 5 islands and covers 16 offices statewide. With over 25 years of leadership in the Hawaii real estate market, our clients benefit from local expertise and global reach. In everything we do, our mission is to make you feel at home in Hawaii and the results are in the numbers:
1 Home Sale Every 3 Hours
$7.7 Million in Sales Every Day
We sell homes 23 days faster than the industry