WAILUKU, Hawaii (AP) — The median sales price of a single-family home in Maui County dropped below $1 million last month as people priced out of the market have chosen to pause their home buying.
The Maui News reported Monday the median sales price for a single-family home in the county stood at $996,500 in September. That's up 27.3% from the same month last year. But it's below levels from May through August, when the median topped $1 million for four straight months.
Median sales prices for single-family homes in Kauai and Honolulu counties have also topped $1 million this year.
The September report from the Realtors Association of Maui said that declining affordability has had “a significant impact” on homebuyers who have been priced out of the market.
Association President Keone Ball said Sunday he believes prices will go back up.
“The problem is the volume, you know, there isn’t enough for sale," he said.
Low inventory and high demand for affordable housing is also a nationwide problem, he said. Across the country, existing home sales were down slightly in August, falling 2% after two consecutive months of increases, according to the National Association of Realtors.
“We’re just not building enough and that’s what economists have said for years, we’ve been behind for decades of not building enough,” Ball added.
Pending sales decreased 4.3% for single-family homes in Maui County, but increased 5.7% for condominiums.
Ball said investment in condos may have spiked due to the settling of the COVID-19 pandemic, the affordability and condominiums being “the only option.”
The median sales price for condominiums was up 46.6% to $729,125.