The ZERO Effect of COVID on the Maui Real Estate Market
Aloha! And welcome to another weekly Maui Real Estate Market Watch Report from Eric West at Keller Williams in Whalers Village.
Here is what's new and developing for the week of August 24th 2020. To see the entire Google Sheets spreadsheet please click here
The big question people ask me every week…”How’s the market doing on Maui?” Many people are expecting a major downturn in demand and subsequent 20-50% reductions in asking prices.
Not so much.
In a nutshell, the Maui Real Estate Market is holding steady, very steady.
Let’s compare the last 8 months of 2020 with the exact same time period in 2019.
Now keep in mind, in 2019 the market was in FULL swing with a FULL capacity of visitors on the island (we average 6,000 new arrivals daily!) and zero travel restrictions.
Whereas in 2020, we have essentially been on lockdown with no visitor travel whatsoever since March!
The total net net reduction in sales for homes, land and condos is only 12%! While median and average home and condo prices climb.
That 12% number is comprised from three distinct segments of the market - homes, condos and land. (And land has seen the lion share of reduction in sales)
Total YTD sales of those three categories has been $1,400,758,293.00. The exact same time period in 2109 yielded $1,590,954,906 in total sales. Meanwhile the average and median home and condo prices have RISEN. The median price of a condo has risen 9% from $515K to $565K, and homes are up 3% from $752K to $775K.
The only real tangible negative effect on the market is the average time it takes to sell (called Days on Market or DOM) has risen 18 days for homes and condos. Which makes sense since buyers are unable to look at properties without first quarantining for 14 days. Which honestly, most people have no problem hunkering down in an ocean front condo or home with a high speed internet connection, Netflix account, blender and a tub of sunscreen!
Of the three segments, homes, land, condos.....land has really been affected the most. With a total 38% reduction in sales so far. The total Year To Date (YTD) sales in 2019 was at $120,056,906 VS $73,885,012 so far in 2020.
Next up is condos. That market has seen a 13% reduction in sales since in 2020 with only 810 units selling up to August 27, 2020 versus 1065 in the same time period. Interestingly enough though, the average price and median price ROSE 14% and 9% respectively.
And finally Single Family Homes in the Maui Real Estate market have been the least impacted by COVID with only a 6.5% reduction in total sales volume YTD 2020 vs the same period of time on 2019 ($683M in total sales/625 units vs. $731M and 703 units 2019) Meanwhile the average and median homes prices rose 5.1% and 3% respectively.
So the "ZERO" effect simply means real estate on Maui is not losing any value. Quite to the contrary. Average and Median home and condo prices are rising, despite a slightly longer days on market to sell and an average 12% reduction in dollar sales volume. Pent up demand is sure to kick in once the travel quarantine is lifted to regain these temporary setbacks.
If you ARE a buyer, thinking about when is the best time to make an offer.....NOW is the time to take advantage of any perceived adverse market effects sellers have in their mind as a result of trying to sell during the COVID era. It might be the only softening you'll see in the Maui Real Estate market in the foreseeable future.
This week we had another 37 price reductions averaging 8% and a total dollar discounting of just over $3M. (Click Here to see every listing that was reduced in price)This is on par with what have been seeing during this Coronoa Virus time period.
My three favorite price reductions this week:
14 Aekai Pl with a $158,000 reduction in price (7% off original asking) This is hands down one of my all time favorite neighborhoods in West Maui - Kapalani Estates Homes for sale. Especially if your home is located close to the pool! Then it’s almost like your own private pool that you don’t have to maintain. I also love, love, love the S-Turns surf break located seconds from the neighborhood.
Masters Unit 2804 with a $100K reduction (9% off original asking). My folks live in this complex and they just can’t say enough good things about the day in day out lifestyle of The Masters in Kaanapali~ I recently shot a “LIVE” video at the complex. Check it out Here.
Aina Nalu Unit G107 Located at 660 Wainee St. with an $80,000 price reduction 14% off original asking! I also recently made a video tour of this fantastic condo complex in Lahaina Town. Click here to watch it
For the week the Maui Real Estate market saw 57 closings for a total sales volume of just over $65M.
Notable Sales include a big one, right here from our office in Whalers Village! 1 Kapalua Place a 1.7 acre beachfront vacant land offering sold this week for $8M.
The Kapalua Land Market has been very active lately as second homes sales and construction start ups are starting to boom!
A record 188 new land, home and condos offerings hit the market this week on Maui!
You can visit this link to see them all!
Please visit my weekly Maui Market Watch to see my Maui Property Tax Calculator, All Foreclosures and Bank Owned Properties for Sale, a list of every sale on Maui in 2020, 2019 and 2018 and of course my Top 20 Picks of Best Deals on Maui for Homes, Land, Vacation Condos and Long Term Condos.
Here are links to my top picks from each category.
$16,000/Acre Land in Kula (which is very low for Maui!)
The big news this week is that Governor Ige and Mayor Caldwell once again forced a total lockdown stay at home order on the island of Oahu while also pushing back the re-opening of trans-Pacific travel to October 1, 2002 by continuing to enforce a mandatory 14 day self quarantine for all travelers arriving to Hawaii. The State had previously announced plans to lift the quarantine August 1, but then reneged the announcement just 2 weeks prior to proposed re-opening. Speculation is the State is not ready logistically to handle the new testing protocols needed for the “safe” reentry of travelers. My personal prediction is visitors will be allowed to travel to Hawaii by mid-November with a negative COVID test 3 days prior traveling.
What are your thoughts?
To see a spreadsheet with all of the real estate closings in Maui YTD 2020 Click Here
My passion is sharing the Maui lifestyle with the world on the largest video platform on earth - YouTube. With an audience of over 3 billion (and growing exponentially) you simply cannot find a better platform to market real estate for sellers and to meet buyers. My Youtube channel is by far the most watched real estate channel in the State of Hawaii. Check it out https://www.youtube.com/hawaiirealestateorg If you are looking to buy or sell a home, land or condo in Hawaii, I'd love to help! Feel free to call or text me at 808-298-2030 or email firstname.lastname@example.org
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