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Fantastic Home in Kula 200

Kula 200 is one of Maui’s most desirable neighborhoods. The area is close to some of the best schools on island. It is in an ideal climate zone, and it offers all of the best features of living Upcountry while being located less than 15 minutes from Central Maui. Our office’s new listing in Kula 200 is one of the best homes of the neighborhood. This four bedroom, three and a half bath home features modern lines, lots of amenities, big ocean views and a well landscaped two acre lot.

A sliding glass wall in the living room opens up to the lani in Kula 200

livingroomviewdoor

This home strikes a strong first impression as soon as you walk through the front door. A dramatic sunken living room is highlighted by a large lava rock fireplace, vaulted ceilings with a pyramid sky light and a glass wall that opens to the lanai and highlights the home’s ocean views.

This is just part of the impressive master bathroom area in Kula 200

The Pool area of a Home in Kula 200

The master suite features another sliding glass wall in the master bedroom. There is also a separate laundry area, a walk in shower with Italian Glass Tiles, a large spa tub and an enormous walk in closet filled with custom storage and dressers. There is even a pool right off the master suite, perfect for an afternoon dip or a moonlight swim.

This Kula 200 Home has a Palapa on the back porch which makes for a good spot for outdoor dining

From the dining room area you can see the kitchen of the Kula 200 home

The pool is just one of many great outdoor spaces at this Kula 200 home. The large lanai area includes built in seating. A palapa offers an escape from the sun or it can serve as an ideal outdoor dining space.

The house is set up well for entertaining friends and families. The kitchen is well suited for preparing big meals thanks to a six burner gas stove with double ovens.

aerialviewkula200

This fantastic Kula 200 home is offered for $2,250,000. Check out the 214 Aulii Listing Page for additional photos and details at the property. Qualified buyers may contact the Maui Real Estate Team with questions or to arrange an exclusive preview of the property.


August 2014 Maui Real Estate Statistics

September on Maui marks the start of the quiet season for visitors. The beaches and restaurants are a little quieter. Most years the real estate market slows as well. September also brings the first Northwest Swells of the season much to the delight of island wave riders. The air also starts to get a little cooler at night. I live Upcountry and I have found myself reaching for a sweater at night over the last week. The start of September also means it is time to look at the August Maui Real Estate Statistics. As usual, this post features a comparison of the number of sales and median prices verses what we saw in August a year ago. I also highlight some of the interesting notes and numbers that I came across while compiling the stats. I give my thoughts on the state of the market and what it means for buyers and sellers. This post also gives some insight into what we might expect to see in terms of sales in the coming months by looking at the pending sales for August. Without further ado, here are the numbers for August.

August 2014 Maui Real Estate Sales Volumes and Median Prices

August Maui Real Estate Sales Volume Table

This table shows the real estate sales volumes in Maui County, Hawaii during August 2013 and August 2014

Sales Volume comparison for Maui During August 2013 and August 2014

This chart compares real estate sales volumes in August of 2013 and August of 2014 in Maui County, Hawaii

There were 68 homes sold in Maui County during August with a median sales price of $567,500. Last August, there were 81 homes sold with a median price of $585,000. That is a 16% drop in volume and a 3% drop in median when comparing this August to last August.

During August, there were a total of 94 condo sales reported by Realtors in Maui County with a median price $410,000. The August 2013 condo sales figures were 113 transactions closed with a median price of $420,000. That is a 17% drop in volume and a 2% drop in median comparing this August to last August.

The August 2014 land transactions in Maui County totaled 14 with a median price of $395,000. Last August, there were 25 sales with a median price of $350,000. That is a 44% drop in volume and a 13% increase in median price comparing this August to last August.

Other Interesting Notes and Numbers from the August Maui Real Estate Stats

While compiling these numbers, I found a few other numbers that I thought were worth passing along.

  • The highest priced home sale last month was $2,500,000 for a 5,222 square foot home on 2.58 acres in the Launiupoko subdivision in Lahaina.
  • It was a quiet month for luxury home sales with only one other transaction recorded above $2,000,000. That home was located in Ka’anapali Hillside.
  • Believe it or not, the lowest priced home sale in Maui County for month and this year for that matter was $1. The leasehold home in Molokai was bank owned. Its lease is set to expire in December when the property will revert back to the lessor who owns the underlying land.
  • While luxury home sales were relatively slow, luxury condo sales were strong in August. The high sale for the month was $8,250,000 for a four bedroom condo at Montage in Kapalua. That is the highest ever sales price for a condo in West Maui.
  • That was one of eight condo sales last month priced over $1,500,000. There were three additional big sales at Montage including closes of $7,750,000 and $7,500,000. There is a buzz about Montage and we recently looked at the resort’s impact on the market in our Kapalua Real Estate Update. There were also two sales at Papali in Wailea, one sale at Wailea Elua and one at Honua Kai.
  • There were only 8 bank owned sales this year compared to 14 sold last year. This isn’t necessarily due to a lack of inventory. June and July saw more bank owned inventory hit the market than what we had seen at any time in the last 24 months. However, the banks have different pricing strategies at this stage of the market. Many of the bank owned listings are being priced above market values.
  • There were six successful short sales completed last month compared to 14 completed in August of 2013.
  • While land sales were relatively quiet, there were 2 transactions that closed for over $2,000,000 in Kapalua.

Thoughts on the August Stats

This was not exactly a robust month for sales on Maui. This is the fifth straight month where condo sales have been lower than same month in 2013. Home sales have been a little stronger than condos, but we have still seen fewer sales overall compared to last year. Land sales are also down compared to last year after two straight months of lower sales. Inventory or lack thereof is clearly playing a part in the reduced activity. Prices are higher and the selection at the entry levels of the market is limited. That is leaving some buyers on the sideline. A reduction in the percentage of cash purchases on Maui suggests that we may be seeing fewer institutional and professional investors buying properties as well.

There are also some sellers who have overshot the market. They are pricing well above what the market is willing to pay. That may also be reducing the volume of sales. Prices in some parts of Maui have surged from market lows at high rates of appreciation. Limited inventory and pent up demand helped bring prices up rapidly. However, the initial rates of appreciation weren’t sustainable over the long haul. The memories of the last real estate bubble are a little too fresh in the minds of some buyers. This phenomenon is apparent in the Kihei entry level condo market. Places like Kihei Villages and Southpointe were selling in the low $100,000s at the bottom of the market with a handful of units in particularly poor shape closing below $100,000. We started to see sales prices as high as the low to mid $200,000s by the second half of 2013. Prices have since held in that range with little or no upward appreciation. Inventory has increased and days on market has gone up significantly. We are seeing this in other parts of the market as well. Kapalua Golf Villas is a nice vacation rental friendly property in the Kapalua Resort. It saw prices bottom out in 2012 when a large assessment was required to address a big maintenance project. Prices began to rise again rapidly in 2013 with the median price rising from $480,000 to $650,000. The median for this year’s sales has pushed all the way into the $700s. Each significant increase in median has been accompanied by a decrease in sales volume.

Are there any other factors at play with the decrease in sales volumes? That is tough to say at this point. The broader economic picture appears to be good at this time. National sales of existing homes continue to increase as of the last National Association of Realtors report in July. However, California saw a decrease in the number of properties sold compared to the same period last year. That is a continuation of a trend for that state. California is far and away the biggest feeder state for Maui Real Estate buyers. Maui tends to follow the same trends as the California market albeit a few months behind.

August Pending Sales

In addition to tracking closed sales. We also like to keep tabs on the number of properties that went under contract during any one month. This gives us some sense of what the stats might look like in the next couple of months.

Pending Sales August 2014 and Pending Sales August 2013

This chart compares the number of properties that went pending in August of 2014 in Maui County with the number that went pending in August 2013.

After seeing an uptick in land and condo pending sales in July, the pending sales are down again. It appears as if the continued trend of lower sales activity will continue in the September and October sales numbers for Maui.

What Buyers and Sellers can expect under Current Market Conditions

While the market has slowed in terms of sales volume, buyers will find that well priced properties remain competitive. This is particularly true with lower priced homes. Buyers looking in this market should be pre-approved by a qualified mortgage professional as they are starting their home search. When the right property comes on the market that meets their needs, buyers will need to be decisive and act quickly to improve their odds of a successful offer. Sellers can see some of the cautionary tales reflected in the paragraphs above. Buyers are balking at overpriced properties and rates of appreciation appear to be slowing. That makes determining your go to market pricing that much more important. Both buyers and sellers should also be aware that market dynamics vary throughout the island depending on price points and neighborhoods. If you are a buyer or seller interested in Maui Property, we would welcome the chance to sit down with you for a free consultation. Contact The Maui Real Estate Team today to discuss your real estate needs.

Kapalua September 2014 Midyear Real Estate Market Report

The Kapalua Real Estate market has had a tumultuous last five years. The real estate downturn battered the Kapalua Resort’s parent company Maui Land and Pineapple. The financial difficulties and eventual foreclosure of the Ritz Carlton Residences was perhaps the biggest symbol of the recent struggles of the resort. All of that said, the Kapalua Real Estate market showed signs of life in 2013 and the Ritz Carlton Residences are under new ownership and management. The relaunch of the Residences under the Montage brand has brought a buzz back to Kapalua. While Montage brings the buzz, Kapalua wasn’t exactly going to seed. This remains one of the more beautiful resort communities on the planet with renowned golf courses and some of the prettiest beaches in the country. This post takes a look at the state of the Kapalua market for 2014. We compare how the market performed compared to 2013.We take an even deeper dive into recent market history with some of the condo complexes. We also give our thoughts on what some of the numbers mean and the current state of the Kapalua Real Estate Market.

Kapalua Condos

When comparing the first eight months of 2014 to the first eight of 2013, the Kapalua Condo market has seen a modest decrease in sales activity. There have been 22 condo sales to date this year vs 24 in the same period last year. There are seven different condominium communities within the Kapalua Resort. The difference in sales between those communities year to year has been more substantial.

A Comparison of Sales Volume at the seven different Kapalua Condo Communities

This chart compares the sales volume at the seven different condominium communities of Kapalua during January through August of 2013 and 2014.

With the differences in sales volume, I thought it might be worth delving into the market dynamics at a number of the seven different condo communities.

The Montage Residences at Kapalua Bay
Montage has grabbed the most headlines of the Kapalua Condo communities this year. The project was previously known as the Ritz Carlton Residences on Kapalua Bay. It came to market in 2009. Developer sales at the upscale condo complex were shut down in 2011 as the development faced headwinds in a more difficult real estate market. While the property has always been impressive, so were constructions costs. Coming to market in the doldrums of the real estate downturn was too tall of a task. The property was foreclosed on in early 2013. Lantern Capital, the new owners, subsequently appointed Montage Hotel and Resorts to manage the property. Montage is a well established luxury brand with a loyal following thanks to communities in Deer Park, Beverly Hills and Laguna Beach. Prior to coming back to market, significant improvements were made to what was already arguably the nicest physical plant of any condo community on island. Among the improvements was the opening of a new restaurant and bar Cane and Canoe. It has been receiving rave reviews since it opened.

The Pool Area of the Montage Kapalua

One of the Pools at The Montage Residences at Kapalua Bay

The combination of the Montage brand, the beautiful property and the five star service create a package that has been very well received since the property came back to market in June. There have been five developer sales and one resale over the last few months. This is particularly impressive considering the price points that are involved. The lowest priced sale was $4,300,000 while the highest sale was $8,250,000. The high sale was the highest priced condo sale in Kapalua history. The second and third highest priced sales in Kapalua history also occurred at Montage over the last couple of months. There was one other thing that I found to be notable among the sales that have occurred. Four of the Montage buyers were represented by Wailea based agents. While Wailea and Kapalua are both world class resort communities, they each have their own distinctive feel. You seldom have buyers torn between the two communities. The buyers tend to gravitate toward one community over another. While the agents in our office are location agnostic, you tend to see more agents who focus on one of those communities instead of both. It says something about the compelling nature of the The Montage Residences at Kapalua that you are seeing Wailea based agents, and presumably Wailea type buyers making the trek up the coast to Kapalua.

At this time, there are two additional Montage Kapalua condos that are currently under contract with five others units listed. They will slowly release the remaining developer condos out on to the MLS as other units are sold. We anticipate that this luxury development will remain a popular offering for Maui Luxury condo buyers for some time to come.

Coconut Grove and The Ironwoods
I thought it was worth touching on these properties as they formerly had the distinction of being Kapalua’s most upscale condominium developments. One might think that the introduction of Montage into the market might have an adverse effect on both of these condos. I am not so sure that will be the case. It could be argued that Montage will be a complimentary rather than a competitive offering. All three condominiums have their own diverse personalities, locations and physical plants. Coconut Grove offers a lower density complex with an incredible location right on Kapalua Beach. The Ironwoods are also lower density and have their own beautiful setting nestled between Oneloa Beach and the fifth hole of the Kapalua Bay Course. The Ironwoods are also available at a lower price point than either Montage or Coconut Grove. Both the Ironwoods and Coconut Grove are different from Montage in that they prohibit vacation rentals. Neither condo complex tends to see a high volume of real estate transactions in any one year. It will likely take a few years before we get a better sense of how those properties continue to be received by the market with Montage available as another options for Ultra Luxury Condo buyers.

Beautiful Oneloa Beach in Kapalua

Beautiful Oneloa Beach in Kapalua

Kapalua Golf Villas
The condo complex that saw the sharpest decrease in sales activity when comparing this year to last year is Kapalua Golf Villas. I would argue that the decreased activity may be a reflection of the a strengthening situation at Golf Villas rather than a weaker market. To understand my reasoning, it is worth taking some time to look at the history of the complex. Aside from the former Ritz residences, it is safe to say that Golf Villas has seen more upheaval over the last few years than any other condo complex in Kapalua. The challenges stemmed from a large assessment that was imposed on the condos. When crews began work re-roofing the condos in the fall of 2011, they started to uncover some much larger maintenance issues that needed to be addressed immediately. Each of the condo owners were required to pay a special assessment over a 24 month period. The assessment ranged from an extra $700 to well over $1,200 a month depending on the size of the floor plan. Within a couple of months of the assessment being announced, there was a flood of inventory that hit the market. The numbers below provide some interesting context for the market dynamics over the last four years.

  • In 2011, there were 11 sales at Kapalua Golf Villas and the median sales price was $510,000. The low sales price for the year was $425,000. It was November of 2011 when the need for a special assessment was announced.
  • In 2012, there were 25 sales with a median price of $480,000. The low sale was $330,000. That was one of five sales during 2012 below $400,000 at Kapalua Golf Villas.
  • In 2013, the sales volume at Kapalua Golf Villas dipped to 11 sales, but the median rose dramatically to $650,000. The low sale price was $489,000.
  • In 2014, there have 5 condos sold year to date with a median price of $710,000. The low sale was $645,000.

The flood of inventory that hit the market in late 2011 and 2012 forced some sellers at Kapalua Golf Villas to slash prices. It was clear there were owners that didn’t want to pay or couldn’t afford to pay the new assesment. As a result, you saw those five exceptionally low sales prices. The scope of work covered by the assessment was comprehensive and suggests that the heavy lifting for the maintenance should be covered for some time. The high volume of sales suggests that there were quite a few buyers who saw the upside in the improvements and the long term potential. By the beginning of 2013, the pool of discounted condos at Golf Villas was largely gone and prices began began to recover quickly. You can see that reflected in the significant increase in median prices. By 2014, sales volumes have slowed even further. Sellers have been trying to push the envelope at Golf Villas on pricing. As it stands, the low sale for this year is just $5,000 below last year’s median. This should make for lower sales volume and lower potential for appreciation the rest of the year.

The Ridge at Kapalua
The Ridge at Kapalua hasn’t seen the same tumult that was experienced at Golf Villas, but there have been some similarities in recent market dynamics. In 2011, sales at the Ridge were slow with only 3 transactions recorded. In 2012, we saw some more motivated sellers as well as a few bank owned properties hitting the market. That contributed to a stronger year for sales with a total of 14 transactions recorded. Buyers were able to take advantage of some lower priced opportunities, and we even saw some Bank owned sales in the $400s. In 2013, the lower priced inventory was gone and we started to see stronger appreciation. That said, it was interesting to note that the progression wasn’t linear. The first half of the year saw only one transaction, the second half of the year had 12 sales. Buyers appeared reticent to support the higher prices at the first half of 2013, but the barrier was broken as the comparative value of the Ridge was recognized. Well maintained grounds, beautiful views and a good location compared to comparable priced properties helped drive buyers into the market. For 2014, sales volumes have slowed and the rate of appreciation has begun to slow as well. Buyers seem to be putting a premium on quality over the lower priced units. The 2 one bedroom units that have closed have been very high quality condos in the $800s, while 2 of the 3 two bedroom units have been priced in the $1,400,000 range. I suspect we will continue to see a focus on quality for the remainder of the year.

Kapalua Bay Villas
When looking at the year to year sales, Kapalua Bay Villas has seen the same number of sales to date this year as it did over the same period last year. That isn’t necessarily a good thing in light of current inventory. There are currently 24 active listings at Bay Villas with one condo under contract. Bay Villas has had pretty extensive inventory for the last few years. I would anticipate that the depth of inventory will significantly limit the potential for appreciation. Sellers will need to listen to market feedback and adjust pricing if we are going to see any significant increase in sales volumes.

Overall, the Kapalua Condo market seems to be transitioning from a period where a good portion of the transactions were value driven. After seeing significant appreciation at condos like Golf Villas and the Ridge over the last couple of years, the opportunity for bargain hunting is limited. It is safe to say that the surge of activity at Montage is not bargain hunting. More buyers are seeking quality above all else. There is plenty of quality to choose from among the active listings. You can check out the current inventory of Kapalua Condos for Sale at MauiRealEstate.com.

Kapalua Homes

The Kapalua Home market has not been as robust as the condo market for the year to date. There have been five sales thus far with a median sales price of $3,250,000. By comparison, last year there had been nine sales by this point in time at a median price of $3,500,000. There are a few things that I thought were noteworthy about this year’s closes.

  • The five sales included one close in Honolua Ridge, two closes in Pineapple Hill and two more sales at Pineapple Hill Estates.
  • The Honolua Ridge close was a bank owned property. This neighborhood was just coming to market towards the tail end of the last real estate boom. As a result, there have been quite a few distressed sales.
  • The bank owned property was the lowest priced sale at $1,700,000. This was the only home sale under $3,000,000 in Kapalua this year.
  • The high sale was $4,700,000 for Carlos Santana’s home in Pineapple Hill. That home has 7,687 square feet of living space.

Island wide, home sales over $2,000,000 are up 32% compared to last year. It is interesting that Kapalua sales activity has dropped in light of the island wide increase in high end sales. That said, the relatively small sample size of Kapalua sales makes me reticent to read too much into the drop in activity. One thing that I can say is that there have been fewer opportunities for owners looking for bargains. Over the previous two years, a number of the homes that have changed hands have been value purchases priced at the very low end of the various Kapalua neighborhoods. This year there was just the one sale under $2,000,000. There has also just been one other listing priced below $2,500,000. The smaller pool of purchases this year appear to be skewed more towards buyers seeking quality homes that fit their needs.

Pocket Doors make for indoor outdoor living at a home in Pineapple Hill Estates in Kapalua

Moving forward for the rest of the year, Kapalua still has a significant inventory of homes available with 24 active listings. Based on the current pace of sales, that would suggest that there are at least a couple of years worth of inventory still available. While conventional wisdom indicates that more than six months of inventory can lead to price decreases, that isn’t as applicable to a market like Kapalua. Kapalua and other high dollar markets typically have much longer days on market. It is not uncommon for some of the highest priced properties to sit for years. The sellers of these homes are typically high net worth individuals with the staying power to hold on to the property long enough to wait for offers that fit their needs. There may be one or two sellers among the active listings who are motivated; the challenge lies in identifying those sellers. While values are unlikely to fall at this point, the depth of inventory should blunt any movement to push prices upward. You can see the full inventory of Kapalua Homes for Sale at MauiRealEstate.com.

Kapalua Land

The land market on Maui hasn’t seen a ton of transactions as of late. When you look at a smaller community like Kapalua, the number of transactions shrinks even further. There have been three land transactions in Kapalua this year. One sale was located in the Plantation Estates subdivision. The other two were in the Honolua Ridge area of Plantation Estates. That total is lower than the five sales that we saw last year as of this time. There are a total of nine active listings currently. They are spread amongst all of the residential communities including Plantation Estates, Pineapple Hill, Pineapple Hill Estates and Honolua Ridge. Plantation Estates and Honolua Ridge offer acreage for potential buyers with some lots in Honolua Ridge in excess of 20 acres.

Kapalua Long Range Outlook

There is much to like about Kapalua property over the long term. The resort seems to have weathered the storm of the last real estate downturn and is positioned to grow as a destination. Montage will help to draw new visitors to the resort community. Some of those visitors may find themselves compelled to own their own slice of paradise in Kapalua. Some of those will snatch up some of the remaining new developer inventory at Montage, while others may opt to look at one of the nearby condos, one of the residential neighborhoods or identify a lot to build a dream home. The natural environment, beaches, golf and other amenities make Kapalua as a whole offer a world class destination resort and make for a compelling place to own a home. Contact The Maui Real Estate Team if Kapalua appeals to you. We would welcome the chance to speak with you about the various properties available for sale around the resort. There may be one that fits you!

Sugar Beach Resort – North Kihei

Beachfront. Nestled between Haleakala and the West Maui Mountains, on the shores of Ma’alaea Bay in Kihei you will find Sugar Beach Resort. This is a vacation rentable, whole ownership condominium with 215 units in two six story buildings. Both buildings have Oceanfront and Garden wings. The well kept grounds measure just over 4 acres.

Spa Hot Tub with expansive ocean views

Two things grab my attention each time I visit Sugar Beach Resort. First, it is truly a beachfront property. Second, the majority of the units directly face the oceanfront and have unobstructed, panoramic views. These are prized features in very limited supply on Maui. Originally built in 1977, solid concrete construction and regular maintenance contribute to the ongoing appeal of this property. There have been a number of major restoration and modernization projects implemented over the past decade including the roof, elevators, spalling repair, the addition of a well, parking lot resurfacing, and the installation of solar panels. I’ll take a deeper dive on this topic in a future post.

Pool with Ocean in background

There are 203 one bed/one bath units ranging from 613-655 square feet and 12 two bed/two bath units either 1,230 or 1,260 square feet. Each unit has it’s own lanai, washer/dryer hookup, and central air conditioning. Property amenities include a gorgeous pool and hot tub, oceanfront barbecue area, putting green, and a nicely manicured front lawn for lounging just above the sand of Sugar Beach.  The property features commercial space along the North Kihei Road side of the buildings where you can find on site conveniences such as Massage Maui, Lani’s Gift Shop, Dina’s Sandwitch Restaurant, as well as an activities desk to book many off site adventures.

Sugar Beach Resort Garden wing

Upon waking to the sound of waves gently lapping the shore each morning, you have a choice of beach/ocean lifestyle activities that are enough to keep you as busy or relaxed as you may desire. My wife and I live a short walk away and frequently stroll the six mile stretch of sand that includes Sugar Beach. We often stop to chat with residents and guests fishing, snorkeling, stand up paddle boarding, body boarding or just enjoying the near constant sun of South Maui. There are two outrigger canoe clubs within walking distance, as well as the Kealia Pond National Wildlife Refuge.

Front lawn of Sugar Beach Resort West Maui Mountains in the Background

Sugar Beach Resort from Beach

There have been 3 sales at Sugar Beach Resort within the past 6 months, all were 1 bedroom units and the prices ranged from $337,000 to $470,000. The price differentials are based on the condition of each unit, the upgrades / updates and of course the views and location within the resort. Oceanfront condos typically fetch more than those in the garden wing, and upper floors tend to cost more than the lower. With only twelve 2 bedroom units at the resort, sales of these floor plans are much less frequent. A 5th floor oceanfront 2 bedroom/2bath unit closed for $920,000 in December of 2012, and a 5th floor, front row garden wing unit closed for $775,000 a year later in December of 2013. At first glance the maintenance fees may appear high ranging between $756 and $ $1,850 per month, but they are inclusive of all utilities including sewer, water, electricity, air conditioning, cable, and other items such as common area insurance, common area electric, common area maintenance and common area reserves.

You can see all of the current Sugar Beach Condos for sale at MauiRealEstate.com.

Whether you are interested in buying or selling at Sugar Beach Resort, I would love to talk further about exclusively representing your interests. Call or text me at 808-298-2741 or send me an e-mail. See you at the beach!

Cash continues to be king on Maui. 2014 Cash Buyer Update.

We have all heard it so many times before, “Cash is king” when it comes to real estate. It is no different on Maui. Sellers seek the least of amount of friction when listing their properties. Cash transactions usually result in quicker and easier closings. In a cash transaction, there are rarely paperwork delays, appraisal battles or last minute underwriting issues. Cash is still king in 2014 on Maui. For example, one of my clients recently ended up as the bridesmaid in a multi-bid situation. Even though he made the highest offer with limited contingencies, cash and a quick close proved more compelling to the Seller.

Through the end of July, just under 44% of total transactions on Maui were cash purchases, which is a slightly higher than the national average, and lower than other resort locales on the mainland US. The percentage of cash buyers rose dramatically to over 66% for transactions over $1 million; for transactions under $1 million the number is 37% or modestly lower than the national average. Jumbo loans are still available in the 3% to 4% range, and in some cases it might make sense to utilize investment capital in other areas. Some buyers have elected to utilize cash funds for acquisition, providing them greater negotiating leverage and flexibility, and then financing post purchase.

As is almost always the case, there is more to the numbers if you dig a little deeper. Over the course of the past several months, the percentage of cash transactions on Maui and in the rest of the United States has been trending down. In the first quarter the cash purchases represented almost 47% of sales on Maui. Since then they have been trending down with June and July registering at 35% and 39% respectively. Statisticians and pundits on the mainland have been calling for the percentage of cash sales to shrink as the number of hedge funds, professional investors and bargain hunters shrinks, signs that the real estate market may be starting to “normalize”. It will be interesting to keep an eye on this trend as we close out the year.

If you would like to get a better handle on current market conditions for your neighborhood, Contact The Maui Real Estate Team we’d be delighted to help.


A Perfect Day at 129 Aleiki

Our office videographer put together a great new video on our beach front listing in the Kuau area of Maui’s North Shore. This Hawaiian Plantation Style Cottage is located right on the bluff above Mama’s Beach. It is a fantastic home base for enjoying all that is offered by the North Shore lifestyle. This video captures some of the elements that could go into a perfect day at 129 Aleiki. Activities featured include reading and strumming the Ukulele on the back porch, surfing and windsurfing at nearby Ho’okipa, heading to Paia for lunch and taking in the sunset from the backyard.

129 Aleiki, Paia, Maui, Hawaii -HD from The Maui Real Estate Team on Vimeo.

This is just one example of a perfect day at 129 Aleiki. The question is what would your perfect day look like? Do you do a stand up paddle coast run starting at nearby Maliko Gulch? Do you head out to Kite Surf at Lanes or Baldwin Beach? Take a Yoga Class in Paia? Do you paddle out to surf the challenging waves that break right offshore from this property during the winter? Do you make the short stroll down the beach to have dinner at the world renowned Mama’s Fish House? Do you just spend a a lazy day soaking up the sunshine and listening to the waves break? As the new owner of 129 Aleiki, the choices would be all yours.

Aerial photo of the cottage on Mamas Beach

This home is listed for $2,750,000. Check out the Oceanfront Vintage Hawaiian Plantation Cottage listing page for more photos and details of this great lifestyle property. Qualified buyers should Contact The Maui Real Estate Team with questions or to arrange a preview.

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