Highlighted News Stories from Mid-February.
Home Prices Rise in Some Regions but Fall in Certain Cities.
Despite median home prices increasing by 4% to $378,700 in the fourth quarter of 2022, according to the National Association of Realtors (NAR), 11% of individual housing markets tracked by the NAR saw home price declines in the same period. Lawrence Yun, the chief economist for NAR, noted that a few markets might see double-digit price drops, especially in more expensive parts of the country that have also seen weaker employment and higher rates of residents moving to other areas. However, the good news for buyers is that the median price hike in Q4 2022 is smaller than the 8.6% increase in Q3, and price increases are fewer, with far fewer markets experiencing double-digit price gains in the fourth quarter. Read more about the home prices.
Maui County Single-Family Home Prices Remain High, While Condo Sales Hit a Low.
The median sales price for single-family homes in Maui County was $1.16 million in January, slightly higher than the previous month. Although the median sales price for homes dipped in the year’s second half, the January price was similar to last year’s. However, in January, condo sales hit a low, with a median price of $657,500. New listings and closed sales continue to be below what they were a year ago, with a decrease of 45.2 percent and 37 percent, respectively. Homes were on the market longer, giving buyers more negotiating power, and seller concessions have returned. The US housing market has remained cautious, with many buyers and sellers waiting to see where the market is headed. Learn more about Maui home prices.
Maui Resident Survey from the Department of Business, Economic Development & Tourism.
The results of a recent survey by the state Department of Business, Economic Development & Tourism’s Fall 2022 Resident Sentiment Survey reveal that 81% of responding Maui County residents agree that the island is being run for tourists at the expense of locals. However, most residents agree that tourism creates job opportunities, supports local businesses, and creates shopping, dining, and entertainment options for residents. The report also highlights the balance between economic benefits and the quality of life as a significant factor in residents’ attitudes towards tourism. Additionally, the survey shows many residents express concerns about over-tourism and its impacts on the environment, quality of life, and cultural resources. Overcrowding, environmental damage, higher living costs, and lack of respect for the culture were cited as the most significant problems by 73%, 71%, 70%, and 70% of respondents. Most respondents agreed that visitors must be educated about protecting Hawaii’s natural environment and cultural resources. However, many still believe they have no say in tourism matters. Read more about the survey.
The Governor of Hawaii proposes additional budget requests for housing, healthcare, education, and more.
Gov. Josh Green has requested additional funding for various projects in Hawaii, including affordable housing, mental health services, climate change mitigation, and education. The proposed budget requests include $900 million for affordable housing and infrastructure, $12.3 million for mental health services, $9 million in the fiscal year 2024 for the Kahului Civic Center, and $38.8 million for expanding preschool access. Green also aims to increase Medicaid reimbursement rates and modernize the unemployment insurance system. The governor emphasized the state’s strong financial position and the need to provide relief to people in Hawaii. Learn more about the funding requests.
Note: Parts of this post were written using ChatGPT, with stories gathered from Maui News.
South Maui Market Update.
We offer many educational resources so that you can stay up-to-date with Maui Real Estate. If you are considering buying or selling in Wailea, Kihei, or Makena, take a look at the following South Maui market report.