Impact of Maui Catastrophe: Potential Effects on Sales and Rental Pricing in the Big Island
Active Market, but for how long?
The recent catastrophe in Maui is expected to have a significant impact on our sales and rental pricing in the Big Island for the foreseeable future. The majority of the Maui residents are currently staying in resorts while they await funds for re-building. The restructuring of Lahaina will heavily impact all islands and based on my observations, I believe that people from Maui will prefer the Big Island. Oahu is an island that is very populated and Kauai is very remote and it is not as developed as The Big Island. Our hearts continue to be with Maui and we are all hoping that the families recover from this very tragic event.
While observing metrics from MLS, we can note that our inventory continues to be limited. As of today, there are 165 active listings that encompass land, condo, and residential. Due to recent events, I foresee that prices are likely to either increase or remain stable for the rest of the year and beyond. Unfortunately, this is not good news for first-time or financially constrained-buyers who were hoping for a drop in prices and interest rates to make a purchase. Only time will reveal the true outcome, but I can tell you from experience on the field that there are homes that are still receiving multiple offers when priced competitively.
Fortunately, North Kona is performing as anticipated. We have 130 pending transactions, and we typically close half of them each month. Our normal closing rate ranges between 50-60 per month, but during the second quarter, it can reach 80-90. The available inventory has had minimal changes, and there have been some listings that have surprised me when they have gone contingent. There are still buyers out there that need housing and the demand for living in paradise continues.
As for residents potentially moving from Maui, we are uncertain of the exact numbers. However, if you have condos or houses available for rent, please inform me so that I can direct you to reliable sources. Our West Hawaii association has put together a list of available inventory for Maui residents who were directly affected by the fire. It will be my pleasure to connect you with a reliable source.
# of Sales on The Big Island of Hawaii – August 2023
144
150
41
News and Economy
August Updates
Rock and Crab Kona
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Property Highlight
Sea View Lots
Purchase Price: $650,000
Home needs TLC but offers amazing ocean views!
TAR UPDATES
Do you have a vacation rental on the island or are you hosting a vacation rental? The county has released a community engagement tool that helps the community voice their opinion about their proposed bill. Please feel free to create an account and add your comments for consideration.
”Finding a way to reach your goals is possible, even when faced with obstacles. Don't waste your energy on a closed door. Explore alternatives, it always pays off 🤙
Maly RomeroReal Estate Consultant
