Along with a slowly improving economy comes the demand for housing and vacation rental investment properties. And while the real estate market for Maui isn’t as hectic as it was at the beginning of 2021, it remains robust and steady. There were 1667 condos and 926 single-family homes sold on the island between January and August. That is a 98% and 43.6% increase compared to the same period in the previous year when tourism was at an all-time low.
South Maui continues to have one of the most dynamic markets in the Maui real estate industry, and rightly so. The region is a favorite among tourists and locals for its easy access to stunning beaches, high-end shopping, and outdoor activities. Buyers frequently check out the posh communities of Wailea and Makena real estate and the beach-combing area of Kihei for prime properties.
Acquiring a home in South Maui is a good investment. But choosing the right time to purchase property is a challenge. It is almost impossible to predict price changes without the help of experts. For this reason, astute investors seek the advice of Maui realtors to help them understand the movements of the real estate market, including property inventory. To find out how the real estate market in South Maui is doing, here are the latest trends.
Kihei Homes for Sale
Everywhere in Kihei is 5-minutes away from the sea, making it a genuine beach paradise. Known as the sunniest place in Maui, Kihei features 6 miles of beautiful beaches, from where you can catch stunning panoramas of Molokini, Kahoolawe, and in some areas Lanai. The quaint community also has everything you need for fun and convenience, including schools, shops, restaurants, nature parks, walking trails, and outdoor spaces. More importantly, Kihei boasts premium houses that range from modest bungalows in quiet neighborhoods to luxurious beachfront estates.
- 17 single-family homes in Kihei were sold in August.
- The same number of residences were sold in July.
- The median sale price increased from $1,076,000 to $1,150,000.
- It indicates that Kihei is a seller’s market, wherein inventory is scarce, causing the prices to rise.
Kihei Condos for Sale
Kihei has around 80 condo communities scattered across seven miles of its shoreline. Many condominiums are on choice oceanfront locations, with prices ranging from relatively modest to multi-millions. Almost all properties possess a laid-back resort ambiance, catering to the needs and preferences of tourists. Although most condos are vacation rentals, there are also several units designed for permanent owner-occupants.
- 62 condos in Kihei were sold in August
- A minimal drop from the 63 units bought in the previous month.
- The median sale price increased from $540,000 to $612,125
- Which, once again, shows a seller’s market.
Wailea Homes for Sale
Wailea is 1,500 acres of breathtaking beaches, world-class resorts, top-notch restaurants, and stellar golf courses. This affluent community features opulent private residences configured for luxurious and comfortable living. Despite the droves of tourists that visit the area, Wailea remains serene and exclusive, making it the perfect place to retire, relax, and relish the finer things in life.
- The number of single-family homes in Wailea-Makena dropped from eight in July to two in August.
- The median sale price rose from $3,224,500 to $9,875,000.
- The data reveals that properties in the area continue to be in high demand.
Wailea Condos for Sale
Famous for its spectacular sights, luxurious living, and warm weather, Wailea is one of the most visited destinations in Maui. Tourists who come to this chic and charming community usually prefer to stay in vacation rental condos. Many savvy property investors buy condos in the Wailea-Makena area and turn them into part-time or full-time vacation rentals, making a lucrative profit out of their real estate investment.
- In July, the number of condo units sold in Wailea totaled 37 but dropped to 21 in August.
- The median sale price grew to $1,550,000 from $1,500,000 in the previous month.
- The data confirms that although there is a decrease in the monthly sales volume, condominium properties in Wailea remain a seller’s market.
General Maui Real Estate Market Overview
The rising demand for housing but low supply has impacted the price of listed homes. The August statistics show a 40.2% increase in closed sales for all properties but a 65.8% decrease in inventory. These changes resulted in the median sales price rising by 9.9%.
New listings for single-family homes in August 2021 remain unchanged at 116. But new listings for condominium homes dropped to 48%. Overall, inventory for single-family homes fell by 45.1% and about 83% for condo properties. The median sales price for single-family residences grew 30.2% ($1,040,000) but decreased 2% for condo homes ($650,000).
Meanwhile, the nationwide 7% decline in the house starts affected the construction of single-family homes (4.5% decrease) and multi-family homes (13% decrease). Homebuilders struggle to keep up with buyer demands, as labor shortages, supply-chain holdups, and mounting material costs delay the completion of projects.
In general, the current outlook of the real estate market in Maui is favorable for sellers. Demand is booming while inventory is limited, shooting up prices. Now could be a great time to sell for owners who are not using their homes. However, there are several factors that sellers must consider before listing their property, which is why consulting a realtor in Maui is a must.
Prospective buyers need not worry about low property inventory. There may not be drastic shifts in market conditions any time soon, but the steadily recovering economy promises relief in supply in months to come. If you’re interested in buying or selling property in South Maui, feel free to contact us for a consultation.