Aloha, e komo mai! As you know, the island of Maui – and the state of Hawaii in general – are currently in the midst of an absolutely scorching real estate boom in the marketplace. As we’ve been reporting on, the median sales price for a single-family home on the Valley Isle has gone over $900,000 multiple times in 2021, according to the stats released by the REALTORS® Association of Maui. Although Hawaii has always been a homeowner’s paradise, it certainly does beg the question: just how long can the 2021 real estate housing market stay red hot?
Easier Said Than Done
Indeed, trying to put a precise number on just how long a real estate ‘boom’ period can last is a little like trying to time the stock market for maximum gains: extremely hard to do, and ill-advised to boot! There are a number of factors at play that work in tandem to produce market forces in real estate, not the least of which include global trends, local construction, inflation, and the amount of homes currently listed for sale. What’s more, Hawaii has often benefitted from a natural elevation in the real estate market due to its desirable location and overall scarcity of properties for sale. While it’s true that there are sometimes more houses on the market than at other times, the COVID-19 pandemic has driven the market into a frenzy that shows no signs of slowing down as we near the midway point of the year.
As a buyer, it can be particularly hard to figure out the best time to buy, especially in a market as sought after as Hawaii. Ultimately, deciding on the right time to purchase your home is far more about your current financial outlook and overall goals than it is the market factors. Making sure that your goals and your buying budget are in harmony comprises a far more important step than attempting to capitalize on any predictions of a market cooldown.
Conversely, as a seller, it definitely means that you want to strike while the iron is hot! Although history strongly suggests that the bottom will not fall out of Maui’s real estate market anytime soon, it can also reasonably be said that this perfect storm of housing unit scarcity, global market conditions, and insatiable buying thirst will cool off at some point yet to be determined in the future. Hawaii’s natural beauty will likely always serve as a buffer towards any long-term, ‘down’ market trend, and with buyers literally lining up to make competing offers on a house, now is likely the time to maximize your return.
No matter if you’re looking to secure your new place in paradise or hoping to maximize your profit by selling your home, the GM Maui Team is ready and rarin’ to go to work for you! We are honored to be Maui’s premier real estate team, and we’d love to make you a part of our ‘Ohana: drop us a line and schedule your free, 15-minute consultation. A hui hou!