Maui Real Estate Market Report and Statistics Year End 2018 and Looking forward to 2019
How did Maui Real Estate do in 2018? What can we expect in 2019?
2018 Year End Report Overview Home Prices were consistently up again in most markets in 2018. The inventory of homes for sale in 2018 was down, meaning fewer homes were on the market for sale yet the number of closed sales increased by 7.6% (includes all properties-homes, condos, land). Home Prices on Maui stayed consistently up in 2018 compared to previous year. High Demand for good condition homes and condos priced right won the race! Median Sales Price for Single Family Homes increased to $710,000. Median Price for Condos increased to $500,000.
Evidence is mounting that our inventory of properties will increase in 2019. Thus the rate of appreciation may be tempered. The fourth interest rate hike by the Federal Reserve in 2018 scared the stock market to close out the year. The Feds did indicate that the number of rate increases in 2019 will be halved, which is good news for buyers. The lower the interest rate the better the buying power.
2019 and What May Be Ahead?
Unemployment rates remain remarkably low in 2018. For Hawaii the employment rate (seasonally adjusted) is 2.6%, U.S. it is 3.7%. Wages continued to improve for many U.S. households which is generally a positive sign, but the percentage of increase on average has not kept pace with home price increases. This created an “affordability crux” in the second half of 2018. Housing affordability will be an important story line in 2019. The year of overpriced listings getting multiple offers is over. Overheated markets on the Mainland coasts may see some price adjustments. It is predicted by most economists surveyed that there will be a softening of the rate of appreciation (see chart below). This can be good news as that indicates avoiding a housing bubble. No one has a crystal ball to predict the future so we can only go by what the experts’ consensus and data reports.
“These higher rates and home prices have reduced buyer affordability. Home sellers are responding by lowering their asking price, which is reflected in the slowing growth of the CoreLogic Home Price Index.” Frank Nothaft Chief Economist at CoreLogic
Summary of Maui Real Estate December 2018
- Median Sales Price increased 3.4% to $708,750 for Single Family homes
- Median Sales Price 14.1% to $493,500 for Condominium homes.
- Days on Market decreased 21.1% for Single Family homes and 24.5% for Condos.
- Months Supply of Inventory decreased 8.1% for Single Family homes and 22.6% for Condos
- New Listings decreased 16.1% for Single Family homes and 1.7% for Condos.
- Pending Sales decreased 3.8%for Single Family homes but increased 5.6% for Condos.
- Inventory decreased 13.2% for Single Family homes and 21.6% for Condos.
Notable Maui Real Estate Sales in 2018:
Maui County Highest Single Family Sale in 2018 on MLS: 3190 South Kihei Rd. Beachfront Home 5 bedroom/7 bath home. 7331 SF. Land size approx. 0.71 acre. Located on South Maui. On Keawakapu Beach. Built in 2015. Sold Price $22,800,000
Maui County Highest Condominium Sale in 2018 on MLS: Wailea Beach Villa D-302. 3 bedroom/3.5 bath Condo (short term rentals allowed). 2934 SF. Located in Wailea, South Maui. Beachfront complex. Built in 2005. Sold Price $10,000,000
Maui County Highest Land Sale in 2018 on MLS: 36 Maluaka Place. The exclusive area of Makena, South Maui. A little over half an acre of oceanfront land 0.55 acres. Sold Price $11,500,000.
The Maui Luxury Homes Report will be coming shortly.
I study the Maui Market, it’s feeder markets and the national and global economy to BETTER SERVE YOU! Call me for the Complete Report and/or Custom Market Report for your neighborhood.
$$$$Monthly Money Saving Tip $$$$
There are rebates for up to hundreds of dollars if you upgrade your appliance to energy saving models. You could also receive rebates for hauling out your old refrigerators. Go to https://hawaiienergy.com/for-homes/rebates/appliances for details and more info.
As always, thank you for being a loyal reader. Should you require any additional info or assistance in Maui Real Estate, please don’t hesitate to reach out.
Mahalo and a hui hou (until we meet again).
p.s. For the new year, one of my favorite things to do is a strenuous (well strenuous for me) hike. This hike requires one to go up 2 walls and swim to the third waterfall. See video here of my daughter jumping off the lower ledge. Wait for the end where you can see the height of this waterfall. Met some wonderful visitors from the Washington D.C area too.