The Kahului, HI metro area housing market is experiencing a notable shift as of January 2025, characterized by declining prices and a significant increase in inventory. The Median Sales Price has decreased to $945,000, marking a 10.0% decline year-over-year. Similarly, the Median List Price has fallen to $1,200,000, reflecting an 11.0% decrease from the previous year.

Price Per Square Foot metrics also indicate a downward trend. The median Price Per Square Foot is now $871.22, a 3.1% decrease year-over-year, while the Median List Price per square foot has dropped by 10.9% to $1,011.24. These figures suggest a cooling market where sellers are adjusting their expectations to align with current demand.

Sales activity has slowed considerably, with only 112 Homes Sold, representing a 26.8% decline from the previous year. Pending Sales have also decreased by 30.7%, with 140 transactions currently in the pipeline. Despite these declines, New Listings have remained stable at 255, showing no change year-over-year.

Inventory levels have surged, with a 55.5% increase year-over-year, bringing the total to 1,235 homes. This rise in inventory has contributed to a significant increase in the Months of Supply, now at 11 months, a 580.0% increase from the previous year. This indicates a shift towards a buyer's market, where supply is outpacing demand.

The Median Days on Market have increased by 40.0% to 105 days, suggesting that homes are taking longer to sell. The average sale to list ratio has decreased to 95.0%, a 3.0% drop year-over-year, indicating that buyers are negotiating more aggressively. Additionally, the percentage of Homes Sold above list price has fallen to 8.0%, a 9.6% decrease from the previous year.

Price Drops have become more common, with 18.8% of listings experiencing reductions, a 5.6% increase year-over-year. Meanwhile, the percentage of homes going off the market within two weeks has decreased by 9.5% to 22.1%, further highlighting the slower pace of sales.

Overall, the Kahului housing market is undergoing a period of adjustment, with declining prices and increased inventory creating more opportunities for buyers. Sellers may need to be more flexible in pricing and negotiations to attract buyers in this evolving market landscape.