December 2022 Market Updates for Maui
Updated: Feb 10
2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
New Listings decreased 8.6 percent for Single Family homes and 50.9 percent for Condominium homes. Pending Sales decreased 22.5 percent for Single Family homes and 60.3 percent for Condominium homes. Inventory increased 31.7 percent for Single Family homes and 29.6 percent for Condominium homes.
Median Sales Price increased 0.6 percent to $1,081,250 for Single Family homes and 10.5 percent to $773,500 for Condominium homes. Days on Market increased 30.8 percent for Single Family homes and 16.4 percent for Condominium homes. Months Supply of Inventory increased 100.0 percent for Single Family homes and 111.1 percent for Condominium homes.
Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.
All data from the REALTORS® Association of Maui, Inc. Report © 2022 ShowingTime.
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