Featured Properties

Kamaole Sands 4-301

Kihei, HI 96753

Rare single-level 2 bedroom, totally private end unit with partial ocean view

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240 Kulamanu Cir

Kula, HI 96790

Kulamanu gem! Ideal location in this lovely neighborhood in the heart of Kula. Fabulous ocean-view home with 5th bedroom/mother-in-law quarters (has separate entrance, kitchenette, laundry & garage).

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154 Cooke Rd

Kula, HI 96790

Imagine driving up a private lane lined with Jacaranda and Eucalyptus trees to where this Classic Kula Kama'aina Estate awaits you.

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Aloha ~

Can you feel it? The market is shifting …

April/May numbers are in, and new home sales fell 19% nationally - to their lowest levels since April 2020. For the week ending June 3, mortgage applications also dropped 20.5% from the same week in 2021, and 40% from their peak within the pandemic!

By now we’ve all heard about the Fed’s strategy: slow inflation by putting the brakes on the housing boom. And we’ve all watched as the average rate on a 30-year fixed mortgage rose from 3.11% in December to 5.49% in late June.

So, what do we get when we combine months of rising interest rates and ongoing increases in home prices nationwide? At some point in time, we get a clear dip in demand. And experts say that time is now.

Yes, a housing market correction has begun, and it even has a name: The Great Deceleration.

No need to panic, though! What we’re talking about here is just the end of a boom; in most areas, home prices will now simply flatten out. For some regional markets (like Boise and Phoenix), where homes are significantly overvalued at the moment, prices may fall 5% to 10% over the next 12 months or so.

But we’re not talking about the kind of housing bust we saw in 2008. Why not? Well, according to sources like Moody’s Analytics, there are three major differences between the 2008 market and today’s:

Homeowners are in better financial shape than they were in 2008.
We no longer have a widespread issue with subprime mortgages.
If prices did begin to drop significantly nationwide, the Fed could always adjust mortgage rates downward again to right the ship.

And keep in mind that if you’re a buyer, this market shift could signal good news at last!

Here on Maui, there were 203 active home listings and 224 active condo listings at the end of May. Home inventory was down 37% from the end of December 2021, and condo inventory was down 68%!

Because of that low inventory (and because so many people recognize the value of Maui real estate!):

61% of homes and 66% of condos sold at or over list price in May.
The median single-family home price ($1.21 million) was up 19% year-over-year, while the median condo price ($715,000) was up 16.7%.

However, for the fifth straight month, the total number of sales declined year-over-year. And if a decrease in demand continues, it creates an opportunity for inventory to increase.

Speaking of Maui inventory, we wanted to make sure you know about Wai`olu Estates! This new development is one of the last opportunities to build a custom home in the master-planned community of Kehalani, just south of Wailuku.

And speaking of life on Maui, if you were here in June, did you catch the World Whale Film Festival or the Kapalua Wine & Food Festival? Or maybe you have plans to attend the Slack Key Guitar Festival at the MACC later this month? And if you’ll be on island in July, will we see you at this year’s Maui Film Festival?

Last but not least when it comes to local news, did you hear that we may soon have a new way to island-hop? Check out this article , about a new seaglider transportation network in Hawai`i!

We love keeping you informed about all things Maui - reach out to us today with any questions you may have about real estate or island life. A hui hou!