August 2025 Market Report for Maui

Sep 2

The U.S. housing market showed signs of resilience in August, with existing-home sales rising 2.0% month-over-month and 0.8% year-over-year, according to the National Association of REALTORS® (NAR). Sales reached a seasonally adjusted annual rate of 4.01 million units, exceeding economists’ forecasts of 3.92 million units (Reuters).

Regionally, sales increased in the West, South, and Northeast, while the Midwest saw a modest decline. This regional split highlights how localized market dynamics continue to shape buyer and seller behavior in 2025.

Maui Real Estate Market Highlights

Closer to home, data from the REALTORS® Association of Maui, Inc. (RAM) shows a shifting landscape as we head into the fall season.

New Listings and Pending Sales

Single Family Homes:
- New listings jumped 23.1%, signaling fresh inventory hitting the market.
- Pending sales surged 19.6%, showing strong buyer activity despite higher borrowing costs.
Condominiums:
- New listings fell 9.7%, tightening supply in a segment popular with second-home buyers and investors.
- Pending sales rose only 2.0%, suggesting slower momentum compared to the single-family market.

Inventory Trends

Inventory climbed 22.3% for Single Family homes and 13.3% for Condos compared to last year.
The Months Supply of Inventory (MSI) rose sharply:
- +31.7% for Single Family homes
- +31.6% for Condos
This indicates a gradual shift away from the extreme seller’s market conditions seen in recent years, moving toward a more balanced playing field.

Pricing Shifts

Median Sales Price:
- Single Family homes declined 3.6% to $1,277,000.
- Condos saw a dramatic 35.0% decline to $650,000, reflecting both affordability pressures and a higher mix of lower-priced units entering the market.

Days on Market

Single Family homes: +10.5%, meaning listings are taking longer to sell.
Condominiums: -1.8%, showing steady demand in this segment despite fewer new listings.

National Context: Inventory at Highest Level Since 2020

Nationally, 1.55 million units were listed for sale heading into August:

+0.6% from the previous month
+15.7% compared to last year

This represents a 4.6-month supply of homes at the current sales pace, the highest inventory level since May 2020. Increased supply has helped cool the rapid price growth of recent years.

National Median Existing-Home Price: $422,400 (+0.2% YoY).
While prices remain elevated historically, the slowdown in appreciation suggests more breathing room for buyers.

What This Means for Buyers and Sellers in Maui

For Buyers:
Rising inventory creates more opportunities and negotiating power. The sharp condo price drop could present unique entry points for first-time buyers or investors seeking rental properties.
For Sellers:
With homes taking longer to sell and inventory levels climbing, pricing strategy matters more than ever. Homes priced correctly from the start are moving faster, while overpriced listings risk stagnation.
For Investors:
The divergence between condos and single-family homes suggests different strategies. Condos may offer short-term opportunities, while single-family homes remain long-term equity plays in Maui’s constrained land market.

Final Takeaway

The U.S. housing market is stabilizing with increased inventory and modest price growth, while Maui’s real estate market is showing more dramatic shifts. Buyers are gaining leverage as inventory grows, but sellers can still achieve strong results with the right pricing and marketing approach.

As we enter Hawai‘i’s traditionally busier fall and winter seasons, market watchers should expect continued adjustments—especially if interest rates or national economic conditions shift.

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Mick St John https://stjohnhawaii.com/