Maui home sales up but median price languishes

Sales in Maui County’s housing market jumped in May, but the median prices for single-family homes and condominiums were flat to down amid shrinking inventory.

Condo sales soared 31.5 percent to 171 from 130 in the year-earlier period, according to data released Friday by the Realtors Association of Maui. Single-family home sales jumped 14.7 percent to 109 from 95.

But it was a different picture for the value of the properties. The median price for condos was $475,000 to match the year-earlier price, while the median for single-family homes slipped 0.7 percent to $695,000 from $700,000. The median price is a point at which half the sales are at a higher price and half at a lower price.

Inventory has been gradually falling and was down 19.5 percent for single-family homes from the year-earlier period. The 462 homes available for sale in May was the lowest in the last 12 months. Likewise, condo inventory was off 20.3 percent from the year-earlier period. The 574 condos for sale were also the fewest in the last year.

“Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest,” the Realtors Association of Maui said in its report. “As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.”

The association said demand for housing remains “quite strong” due to payrolls trending upward and unemployment trending downward.

“Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly,” the report said.