Home Prices on the Rise

Median single family home price $700K

In December the median price of a single family home rose to $700K, the highest it has been since 2006, 27% higher than the median home price of $550K in 2015. Economists predict home prices to continue to rise throughout the year.

The main factors driving prices up are the low inventory, low interest rates and we are currently in our “peak season.” Many homes are receving multiple offers which further drives up prices and atests to the issue of low inventory.

Many local residents and fixed income buyers are priced out of the market. A lot of buyers are from California or other parts of the West Coast and are buying as investments and second homes with cash. We have seen less Canadian and Japanese buyers than in years past though Korean buyers are now showing an interest in the Maui real estste market.

There were 1,076 single family home sales in 2016. The most were in central Maui, at 346 sales it was 14% lower than 2015. Sales in Kihei increased 10% to 162 single family home sales. Maui Meadows increased sales by 25% and Lahaina increased 31%. The highest priced single family homes were in the Wailea/ Makena area with a medain sales price of $2.8M.

The condo market increased 10% overall over 2015 with 1,310 sales at a median price of $415K. Kihei had the highest number of condo sales at 457. We can anticipate a slow, steady and progressive year.