Navigating the Maui Condo Market in 2025: Challenges, Clarity & Silver Linings
The Maui condo market is facing some undeniable headwinds in 2025. With higher interest rates, rising insurance premiums, and an increasingly cautious buyer pool, it has become more challenging to sell condominiums. But as with all market shifts, there are silver linings—and opportunities worth exploring for both buyers and sellers.
What’s Weighing on the Market
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Interest Rates & Affordability
Elevated mortgage rates have tightened buying power. Some buyers who may have qualified for higher price points in previous years are now having to adjust expectations—or wait on the sidelines. -
Insurance Rate Spikes
Hawaiʻi’s condo associations have been hit hard with dramatic increases in insurance premiums. These rising costs are often passed on through higher HOA dues, which further affects affordability and investor ROI. -
Buyer Uncertainty & Minatoya Confusion
One of the less-talked-about but equally impactful factors: confusion surrounding Mayor Bissen’s proposed changes to vacation rental zoning, often referred to as the Minatoya proposal. Read article here.
While the proposal aims to limit transient accommodations in apartment-zoned areas, it does not typically affect condos used as long-term rentals. Yet many buyers are unaware of the nuances and assume that all condos in these zones are at risk of losing their rental income potential. Please contact your real estate professional to confirm the viability of any condo for your intended use.
This is exactly where working with an experienced, well-informed local real estate agent becomes critical—someone who can read beyond the headlines, and give you clarity on what is (and isn’t) changing.
But Here’s the Silver Lining…
Even with these challenges, there are clear advantages to both buying and selling a condo in today’s market—especially when guided by the right strategy.
For Buyers: Why It Might Be Your Window of Opportunity
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Price Corrections: The median condo price on Maui fell to $822,500 in March 2025, down nearly 37% from a year earlier (source). This means properties that were once out of reach may now be accessible. Click here for Maui Real Estate Reports.
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Less Competition, More Leverage: With buyer hesitation, there are fewer bidding wars and potentially more room to negotiate on price, terms, and closing costs.
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Lifestyle + Long-Term Value: Buying in a thoughtfully managed complex with long-term rental ability still offers lifestyle and potential income value—especially for those who plan to invest for the future.
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Improved Inventory = More Choices: Today’s market offers more selection, allowing buyers to be more discerning about view, layout, and condition—without panic buying.
- Get Ahead of the Next Cycle: While we’re in a market correction now, history shows that once interest rates normalize, demand tends to rebound quickly, tightening inventory and driving prices back up.
For Sellers: The Right Buyer Is Still Out There
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Seriouis Qualified Buyers Still Shopping: Buyers moving to Maui for lifestyle reasons (relocating, retirement, downsizing) are still active—especially if your condo is well-maintained,presented well, and priced to reflect the current market.
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Opportunity Cost of Waiting
Holding onto a condo comes with ongoing carrying costs—property taxes, maintenance fees, utilities, insurance,etc. If the property no longer fits your life plan or financial goals, now may still be a strategic time to sell, even in a slower market. Keep in mind that when you sell, you then may become a buyer and can take the opportunity in today’s market. -
Working with a Skilled Agent Makes All the Difference: In this nuanced market, marketing, negotiation, and navigating misinformation (like zoning or vacation rental rules) require professional expertise. A sharp, data-informed strategy can still get results.
Conclusion: The Market Has Shifted—Not Disappeared
The Maui condo market in 2025 is not “down”—it’s evolving. For both buyers and sellers, it’s no longer about riding the wave of a hot market—it’s about strategy, clarity, and being properly informed.
This isn’t the same Maui condo market we saw in 2021 or even 2023. This requires sharper strategy, clearer education, and better representation.
Whether you’re buying or selling, the key is to work with someone who’s tracking the data, and cutting through confusion!
📩 Let’s talk about your specific goals.
Email me at JeannieKongEvarts@gmail.com
📞 Or call/text 808-276-1832
I’ll help you move forward—smartly, calmly, and with clarity.
Photo taken by Jeannie. Just like Maui’s rare silversword, this island is one of a kind—resilient, breathtaking, and full of beauty. From sun-drenched shores to misty uplands, Maui’s microclimates remind us that beauty doesn’t wait for perfection. So don’t wait for the “right” moment—move toward your dream.
