Maui’s already exclusive real estate market exploded in 2021 and cash buyers were uniquely able to take advantage of this. Low Interest rates, dwindling inventory and the ability to work remotely were three key factors sky rocketing Maui’s real estate market.
According to a 2021 report by Fidelity National Title & Escrow of Hawaii, sales for home, condo and land were up 30, 70, and 95 percent respectively. More than half of the homes and condos on Maui sold at or above the list price. Cash buyers, many of them from out of state, were well positioned to compete in this market, where cash deals accounted for 33% of home sales and 44% of condos sales.
With continued gains in the equity market, low interest rates, limited inventory and ability to work remotely during the pandemic, it’s likely this trend will continue and cash buyers will maintain an advantage.
Out of state buyers accounted for over 30% of the transactions on Maui and cash buyers, in particular, were advantaged in this market. According to an article in Forbes, Hawaii’s ultra-luxury real estate market saw enormous gains. The trend of low inventory and high demand is likely to continue going forward into 2022.