Maui’s Real Estate Market Report, Q3 2021: How Low Inventory and a Decrease in DOM is Impacting Maui’s Housing Market
Just released by Hawai’i Life, our Quarter 3 2021 Maui real estate market report indicates that the number of homes available for sale has dramatically decreased when comparing Q3 2020 to Q3 2021. What’s more, the homes that are available don’t spend nearly as much time on the market (only about 50 days)! With so few properties selling at such a rapid pace, it’s no surprise to see prices continue to rise.
Fewer Listings Give Sales Prices a Boost
As we look back on Maui’s real estate market over the past year, each month has seen fewer and fewer active listings. Specifically, current inventory is 195 active residential listings, down by nearly half from 336 in Q3 2020. The past 12 months have been characterized by this decline in inventory of more than 42%, while the volume of sales has increased by over 17.7% over the same period.
At this rate, current months of inventory available is 1.7 months in Q3 of 2021. That’s a whole 54.5% less than 3.7 months in the same quarter last year. This downward trend in inventory has spiked the average sales price up 60.6% on Maui, from $1.147M in Q3 2020 to $1.842M in Q3 of this year.
Hale Makana Ola, Lahaina, Maui – $12,990,000
Residential Properties Command More Value Per Square Foot
To get a firm grasp on the direction that property values are headed, it’s important to look beyond the average sold price and median sold price to the average sold price per square footage, which we’ve found to be a more reliable indicator.
over the last 12 months, residential properties have continued to command more value per square foot. By the end of September 2021, the year over year increase reached $802.51 per square foot. Considering that the average price per square foot was $587 in Q3 2020, that’s an increase of 36.8% for Maui.
Although some of the previous 12 months have been outliers, the average number of days a property was on the market before it sold is down 27.1%, from 70 days in Q3 2020 to 51 in Q3 2021. With the trendline confirming this dip in days on market (DOM), it’s hardly an understatement to describe the seller’s market as competitive.
Sold listings were up from 294 property sales in Q3 2020, affirming the demand that is driving this seller’s market. At 346 sales in Q3 of this year, that’s a notable increase of 17.7% for the Maui real estate market. There was a slight increase of 6.5% in pending properties, with 346 properties currently under contract versus the 325 homes under contract in Q3 the previous year.
The pinnacle of the pandemic-instigated housing rush may be behind us, but with buyer demand continuing to surpass supply, the market remains lucrative for sellers. For buyers, standing out in this competitive market is the priority.
The professionals at Hawai’i Life are well-versed in helping the buyer submit an aggressive offer, decide what concessions to make, and ultimately have the best possible chance to beat out other eager house hunters.
Access the rest of the Q3 Hawai’i Market Reports Now
The Real Estate Market Report covers quarter three of 2021, providing a wealth of knowledge from Hawai’i’s most experienced real estate brokers.
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