Featured Properties

63 Hoolei Cir B2

Kihei, HI 96753

Location, location, location! Epic ocean views and one of the finest villas in the community make Ho'olei 63-2 an exclusive and highly desired opportunity.

view property

70 Halili Ln 7C

Kihei, HI 96753-6082

Perfect Turn Key opportunity in the best location in Villas of Kenolio! Tucked away steps from the pool, gym, playground, and visitor parking

View Property

1660 Kokomo Rd

Haiku, HI 96708

Epic ocean and mountain views from this extraordinary Haiku estate. “Town and Country” best describes 1660 Kokomo Rd. which features fully renovated residences on over 2 acres of peaceful nature and paradise.

view property

HOT OFF THE PRESS:

Holiday Chill Gifts Seasonal Blessing to Buyers and Patience to Sellers

Our small island paradise remains in great demand from buyers living in West coast communities with direct flights to Maui. Despite a reduction in listings and rising interest rates Maui has not changed dramatically in comparison to other U.S. markets. Maui has gradually shifted from a great seller’s market to good seller’s market. Fewer buyers have resulted in a decrease in overall activity and competition, which has created stronger negotiation opportunities for buyers.

In October new Maui listings decreased by 15% for single-family homes and 50% for condos. Pending sales were also down 50%. Mainland home sales have seen the exact opposite, more properties on the market at lower prices. Yahoo.com reported that in western locales like Boise, Las Vegas and Phoenix prices have dropped by 10% with inventory up 150%.

Maui is an anomaly. Why is that? Why aren’t owners selling?

Many Maui owners have locked-in interest rates half of the current 6.6% average. Their homes are appreciating and their investment is a great hedge on inflation. If they were to rent, they’d make money. Even if the resident owner needs to move off island, in many cases selling is not required. If the owner has other assets, they can barrow against them or even liquidate an additional asset. That revenue can be used as a down payment on a new residence. By not selling owners are able to generate rental income and yield revenue to use towards their retirement. This low interest rate, mortgage equation applies to high, mid and low-end Maui property owners.

For those few owners that are motivated to sell, a longer period of days on market could cause the seller a greater sense of urgency. Romvari Realty had one situation where a Haiku owner, for tax reasons, wanted to close before the end of the year. For this owner the tax advantages outweighed the sale price and we were able to negotiate an excellent deal for our buyer.

In another situation Romvari Realty found a property that was not listed on the open market. Our buyer made an offer below market value. The seller felt if they waited their property value would go down. Therefore they put a high value on closing early and we got this buyer a smoking hot deal!

Realtor.com revealed, "The top reason cited by sellers for postponing listing their home was the lack of available inventory… The inventory shortage proved a catch-22 for many home sellers, who could not find an affordable next home, even when selling their current one for top dollar." Yet in anticipation of selling, 93% of sellers surveyed by Realtor.com have taken steps to prepare.

If you were a Maui property owner would you want to give up your Maui dream if you didn’t have to? Sellers have very few compelling financial reasons to sell and that is why we are seeing historically low inventory!!!

In October Maui had 172 closed transactions. Past years averaged 233. That’s a 25% decrease in inventory. To date there are 148 active condos for sale. That's less than a two-month supply for buyers. A balanced Maui market is a six-month supply.

There are only 36 short term rental condos at $1 million or under, 46 homes at $1 million and under 106 homes at $1.5 million or under for the entire island. The median price for a single-family home on Maui reached over $1 million in October. That’s a 13.5% increase from last year. Even a high median price is not motivating Maui property owners to sell.

Maui homes that did sell in October spent an average of 144 days on the market, a 44% increase from 2021. Condos also saw a 50% drop in new listings and sales from last year plus a 5% increase in days on the market.

A Realtor.com survey showed that 77% of prospective sellers nationally would accept an offer below asking price if they did not have to prepare their home for sale. Change in our marketplace is making that less likely. Sellers are advised to better prepare their property if hoping for a quick Holiday sale.

According to Zillow senior economist Nicole Bachaud, “. . . Sellers need to do things right to attract the attention of these buyers… Buyers are still out there and willing to buy when they find the right home at the right price… But sellers need to do things right to attract the attention of these buyers - pricing their home competitively and making their listing attractive to online home shoppers… Working with an experienced agent who knows the local market is valuable."

A shift to buyers isn't a Bah Humbug for Maui sellers. With less inventory to choose from, all a seller may need is a winter spruce up and highly-skilled agent to put their property on the buyers Christmas list.