The Maui market of 2021 has seen record home sales prices, thanks to three primary factors: 

1. A major shift (brought on by the pandemic) in the number of people who can work from home, giving many the freedom to live wherever they choose.

2. A significant increase in the number of buyers wishing to take advantage of historically low interest rates. 

3. An ever-decreasing inventory of available homes on the Valley Isle.

By September, Maui had seen four consecutive months of median home prices above $1 million. According to year-to-date data from the REALTORS®️ Association of Maui, homes on island have sold for an average of 98.6% of their list price, often as a result of receiving multiple offers. With no sign in sight of a drop in demand for Maui properties, you may have given some thought to the idea of selling your house or condo.

So what’s stopping you from listing? Perhaps a fear that you’ll find yourself moving from place to place if you can’t get settled into your own new home quickly enough?

We understand why any homeowner would be reluctant to list their home for sale if it meant potentially having to move more than once. But we’re here to assure you: that outcome is extremely unlikely.

First, keep in mind that many Maui properties are second homes. Based on a recent report from the Hawai`i Budget & Policy Center, over 70% of the houses and condos sold in Maui County in 2020 were purchased by “investor owners,” rather than being classified as owner-occupied.

In fact, the percentage of investor-owned properties on Maui has risen steadily since 2016. And if the new owners aren’t in a rush to move out of their own home and into the one they’re buying from you, they're less likely to have a tight timeline for closing.

Next, consider these staggering specifics about the limited home inventory on Maui: compared to September 2020, September 2021 saw a 44.3% drop in single-family homes for sale and an 82.3% drop in condos for sale (based on data from the REALTORS®️ Association of Maui). Fewer available properties means greater competition. And with so much competition for the same properties, many buyers find themselves willing to do whatever it takes to get the home they want.

Under these circumstances, sellers have unique negotiating power to ensure they don’t end up either burdened by the carrying cost of an extra home or worrying about having no place to live.

Homeowners can protect themselves using a variety of methods, such as including a disclosure in their MLS listing saying that the sale of the home is “subject to seller finding suitable housing.” This provision can also be included in the purchase contract, and/or the closing date can be pushed well out, giving the seller plenty of time to conduct their own home search. After all, the seller can always come back to the buyer if they end up being ready to close sooner.

In a market like the one we’re currently experiencing on Maui, sellers have the distinct advantage of being in the driver’s seat when it comes to the terms of a home sale. For more details about listing your home while demand and prices are high, contact the Romvari Realty team today!