Median prices for single-family houses and condominiums on Maui increased by double-digit percentages in May as low inventory prompted buyers to snap up properties at a rapid pace.
Single-family houses rose 12.4 percent to $700,000 from $622,500 in the year-earlier period as the number of days they remained on the market until being sold declined 20.5 percent to 132 from 166, according to data released Saturday by the Realtors Association of Maui. Similarly, condos’ median price increased 13.5 percent to $479,000 from $422,000 as days on the market fell 5.8 percent to 147 from 156.
The median price is a point at which half the sales are for more and half for less.
Inventory continued to shrink as available houses for sale decreased 12.1 percent to 528 homes while condo inventory fell 21.5 percent to 679.
HOME SALES
The number of homes sold on Maui in May with the median price and percentage change from the same month last year.
HOMES | SALES | MEDIAN PRICE
May 2017 | 95 | $700,000
May 2016 | 94 | $622,500
Change | 1.1% | 12.4%
CONDOS | SALES | MEDIAN PRICE
May 2017 | 129 | $479,000
May 2016 | 119 | $422,000
Change | 8.4% | 13.5%
Source: Realtors Association of Maui
“Home prices across the U.S. are reaching all-time highs, prompting worry over another boom-and-bust scenario like we experienced roughly 10 years ago,” the trade group said in a statement. “Yet, as we glance across the state of residential real estate, what is clear compared to the last extended run of price increases is that lending standards are now much stronger than they were before. Incomes must be verified, a reasonable amount of money must be paid toward the home prior to purchase and a more stringent loan approval process is in place to prevent a repeat performance of the Great Recession.”
The number of sales showed relatively small gains as the 95 single-family houses sold in May was just one more than the year-earlier month. Condo sales rose 8.4 percent to 129 from 119.
In what is widely regarded as a sellers’ market, sellers on Maui last month received 97.2 percent of the listed price for single-family houses and 96.9 percent of the listed price for condos. Those percentages are in line with what sellers have received through the first five months of the year.
“Although we continue to battle an inventory shortage in much of the country, optimism remains high for a successful summer for buying and selling homes,” the trade group said.
The Realtors Association of Maui counts both new and previously owned homes in its sales data. That differs from the Honolulu Board of Realtors, which counts only resales of previously owned homes in its report for Oahu.
