Q: What can you tell me about the Median Price of Homes on Maui? A: According to an article in the Maui News, dated February 10, 2005 by staff writer Harry Eagar:

The median price of a single-family house on Maui reached a record $612,000 in January, according to figures from the Realtors Association of Maui….

"It is startling, isn't it?" says John Stephens of Equity One Real Estate…(when) the country wide number of sales was lower than last month, as it has been for several months, though Stephens says, "It's too early to say that it is a trend."

One thing holding down the number of sales was the lack of offerings. The scarcity of either new houses or of older houses after several years of red-hot sales has helped contribute to accelerating prices. "There's a shortage of housing in all sectors," says Stephens, "not just affordable housing. And that's going to get worse before it gets better."

Stephens says there are reasons to think it can go on for some time. The National Association of Realtors economic forecast, taking account of demographic and other factors, is for a continuing strong real estate market.

Locally, Paul Brewbaker, chief economist at the Bank of Hawaii, visited the Maui board a month ago and told them, Stephens says, that the strong statewide market should sustain itself into the next year.

There is some question, Stephens says, whether Maui is leveling off, but the national association says that even with the high prices sellers are getting, many buyers are enjoying mortgages that amount to a lower percentage of debt to income than their predecessors took in the early 1980's. That was a time of record-high interest rates, and today's rates continue to stay well under 6 per cent. Also, says Stephens, many buyers are able to make large down payments with money they got by selling their old homes.

In January 2004, the median price of a Maui resale single-family home was $520,000… In December, the median was $595,000, also a record. Maui prices lead the state, although Oahu broke the $500,000 median-priced barrier in January 2005.

The scene with condominiums is the same. The median in January here was a record $415,000, up from $355,000 in December and far ahead of the $275,000 median in January 2004.

<< BACK TO FAQ