Sales Down in 2019 as Prices Up 3 to 4%
Out-of-state residents bought about a third of homes on Maui in the first three quarters of last year, with the trend expected to continue.
Mainland buyers represented 30.4% and foreigners 2.2% of Maui purchases of homes for the first 3/4 of 2019.
Over the last decade, out-of-state residents made up nearly half of Maui home-buyers. Locals purchased 51.9%; Mainland residents, 42.4%; and foreigners, 5.7% from 2008 to 2019.
Sales of single-family homes and condos were both down in 2019, compared to 2018. Single-family home sales dipped 1.9% to 1,117 units, and condos dropped 3.1% to 1,606.
Median prices rose in the 3 to 4% range for the year for homes and condos. The median price for homes was $741,355, up 4.4% from 2018; for condos, the price was $515,500, up 3.1%.
The affordability index for homes fell 4.3 percentage points to 45 and 3.1 percentage points to 65 for condos. An index of 120, for example, means the median household income is 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means great affordability.
Wailea-Makena's median sales price for the year was $2.5 million, up 38.5%. For Wailuku, the median price was $675,000, up 2.3%, and $682,500, up 5.2%, for Makawao-Olinda-Haliimaile.
New Fines for Unpermitted Vacation Rentals on Maui
New vacation rental fines for unpermitted transient vacation rentals on Maui took effect, December 27, 2019.
Section 13-10 of the County Charter was updated after the 2018 election, to specifically state, "the penalty for the operation of transient accommodation without a necessary permit shall not exceed a civil fine of $20,000 plus $10,000 per day for each day the unlawful operation persists, unless a higher fine is authorized by State law."
The prior version of the Charter limited penalties to $1,000 initial and $1,000 per day.
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December Median Home Price Increased 4% to $740,000
Maui home prices were up 4.6% in December to $740,000 for a single-family residence; and condo prices were up 4.7% to $514,120.
Days on Market increased 7.8% for single-family homes but decreased 9.7% for condominium homes. Also noted that months supply of inventory decreased 18.6% for single-family homes and 9.5% for condominium homes.
"In 2019 home prices were up again in most markets. Buyer demand continues to be strong but with tepid seller activity still in many locations, total sales are lower than they would normally be in a more balanced market. While up from their recent lows a few months ago, mortgage rates end the year close to three-quarters of a percent lower than a year ago, helping to improve affordability and offset rising home prices.
"With low mortgage rates, low unemployment, and continuous wage growth, home buyer activity is expected to remain healthy into the new year."
"It remains to be seen whether existing homeowners will be enticed to sell by higher home prices, which could finally bring the overall housing market into greater balance."
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Hawai'i Residents Will Have More Buying Power This Year
Homebridge Financial Services in Hawai'i announced that the Federal Housing Finance Agency maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2020 will increase for the counties of Honolulu, Hawai'i, Kalawao, Kaua'i and Maui.
The new ceiling loan limit for one-unit properties in 2020 will be $765,600, a nearly $40,000 increase from $726,525 in 2019.
"This quite simply means more buying power for Maui residents in 2020. While every county is different, as a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2020 in all but 43 counties or county equivalents in the US."
In most of the US, the 2020 maximum conforming loan limit for one-unit properties will be $510,400, and increase from $484,350 in 2019.
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School Auction at Trinity Luther School in Bend, OR
"Aloha! My name is Silvia Gray and I am writing to you on behalf of Trinity Lutheran School in Bend, OR.
The reason I am writing to you is that we are currently preparing for our school auction, which will take place on April 25th, and we are looking for vacation rentals for our live auction packages. At this time, we do not have any vacation rentals that we can offer our auction attendees. While we would love to acquire a Hawaii property, we would greatly appreciate a property at any desirable vacation location.
The funds we raise during the auction help support school improvement projects, sports programs, performing arts programs, and tuition assistance. We rely on the support of businesses and generous individuals to help us raise these very important funds.
The donations are tax deductible. Please contact me at firstname.lastname@example.org or 714-878-5329 if you are able to make a donation to help our school. Thank you so much for your kind consideration of my request.