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Stunning. That is the only word to describe the current demand for Maui Real Estate. In May, Maui breached the $1,000,000 mark for median price of single-family homes for the very first time at $1,039,000. Last month, that high point was completely blown away with median home prices coming in at $1,117,500—a gain of $78,500 month over month!
Perhaps even more stunning is the 44% year over year gain (appreciation) from June of 2020. Inventory remains historically low which continues to drive prices up, but it seems the balance point may have been reached where there are just not enough homes on the market to choose from anymore. Pending sales have slowed somewhat. While the numbers on condo sales are not quite as dramatic—you can click on the link below and see for yourself—they are still significant.
More importantly, it continues to beg the question of what is driving the present frenzy—and whether it will be sustainable over time. Here’s my personal take on the matter:
Much credit, or blame if you will, has been directed to the pandemic. Families leaving metropolitan areas seeking safe harbor from Covid, with a little more sunshine and lifestyle thrown in with the deal, is no doubt a factor for choosing Maui. A realization that business and commerce can, for the most part, be conducted from home in a now virtual world has contributed. The fact that single-family homes have seen the greatest rise in prices rather than condos suggests that relocating and longevity are factoring in as well. All true.
In my opinion, it’s more than that. Truth is, Maui real estate has always been under-valued compared to other highly desirable destination locations.
Point in fact—my career in real estate began in 1989 in Santa Cruz, CA. I was a Top-Producer with Coldwell Banker for 14 years before re-locating to Maui. Santa Cruz has always been (and continues to be) a highly desirable beach community with its special set of amenities revered throughout the Bay area and beyond. If I’m not mistaken, my Realtor friends in Santa Cruz will verify that median home prices left behind $1,000,000 as a median price point long ago. Maui is just now catching up.
If you believe the hypothesis, then it’s easy to believe the conclusion that $1,000,000+ median home prices for Maui are here to stay—sustainability. Certainly prices will not continue to escalate at the current pace forever—if for no other reason than we will run out of houses for sale! I never thought I’d see my lovely Kihei home hit the $1,000,000 mark, but it certainly has! Wanna buy it?
Click here for complete June Statistics
The news is all good here, so here it is in a concise, bullet-point list:
As of July 8, there are now two ways to avoid a 10-day quarantine when visiting Hawaii 1) proof of a negative Covid-19 test within 72 hours prior to your visit, or 2) providing proof of vaccination, with the final injection at least 15 days prior to your arrival.
- Go to the Hawaii Safe Travels site at travel.Hawaii.gov/#/welcome to upload a copy of your vaccination certificate (or bring a hard copy) or…
- Upload a copy of your Covid-19 test result from one of Hawaii’s Trusted Testing and Travel partners.
- While outdoor masks are no longer required, many residents and visitors choose to still wear them outdoors. Social distancing and masks indoors are still mandated here on Maui (yes, even Costco).
- Restaurants have been approved for 75% occupancy and most restaurants with cocktail lounges (bars) allow seating at the bar—again, 75% occupancy.
- The rental car situation is still a bit vague—Britney Spears was just here and acknowledged she was having a good time even though she’s “driving around in an old car”. Adam Sandler and family were recently spotted, as well.
So, while Hawaii is not offering any perks for being vaccinated as far as I know, just being able to avoid the Covid test may be enough incentive for some!
That’s a wrap for July! Yes, our very warm weather is upon us once again with little rain in sight for the leeward side of the island (Kihei, Wailea, Makena). But if you’re planning a visit for a week or two, and especially if you like to spend time in the water you won’t be bothered by the heat and will appreciate the sunshine. Remember, if you are interested in Maui Real Estate, simply send me your contact information and criteria and I will get back to you right away with a list of properties and other tips.
Malama Pono,
Michael Blaz
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