The summer of 2012 marked a turning point for the Maui Real Estate market. What had been a slow recovery, began to accelerate rapidly as buyer demand increased strongly and inventory shrank significantly. One of the “hottest” neighborhoods on the North Shore of Maui has been the Kuau Bayview in Paia. The map below shows the six sales that have occurred over the last six months.
View Kuau Bayview Market Update in a larger map
Three of the sales are worth highlighting to show the current state of the Kuau Bayview Market.
- 24 Laenui-When this property came on the market in January, the $849,000 asking price raised a few eyebrows in the real estate community and the neighborhood. The home was priced above the all time high for the neighborhood. The last sale in the 800s had occurred in 2006. Much to the surprise of many, the property went under contract shortly thereafter and ended up closing in March. The sales price of $835,000 established a new high for Kuau Bayview.
- 34 N Laelua-One sale does not define a market. A single high sale can be dismissed as an outlier. The sale of 34 N Laelua showed that 24 Laenui wasn’t exactly a fluke. This home is situated right above Hana Highway. The homes on this side of N Laelua typically take longer to sell and sell at a lower price due to road noise. 34 North Laelua went under contract quickly and established a new high for properties abutting against Hana Highway with a sales price of $750,000.
- 43 S Laelua-This was an unlisted property that never hit the MLS until it was sold. The sale price of $712,000 was the second highest cost per square foot close in neighborhood history. The cost per square foot price was 25% higher than the last sale of the same floor plan which had only closed in December.
While many neighborhoods around the island are making modest recoveries above bottom of the market prices, Kuau Bayview is selling right around peak market pricing. There are a few factors that are driving this stronger recovery.
- Scarcity-The Paia Real Estate market is experiencing tremendous scarcity. At this time, there is only a single active listing for sale under $1,000,000. All other properties in this range are under contract. When homes come to market in Kuau Bayview, it is typical that there is usually only one or two on the market at the time. Overall, Paia has seen limited new construction over the last decade. The community is hemmed in by active Sugar Cane fields with very few parcels of vacant land ever for sale.
- Demand-While supply has been limited in Paia, demand has continued to grow. Paia has grown in notoriety as a place to live and to own second homes. Residents and second home owners are attracted to area beaches, water sports, the charm and funkiness of Paia, and great shops and restaurants just to name a few things. The profile of the town has been raised by recent media publicity from the New York Times and Sunset Magazine.
- The neighborhood itself is unique in the Paia market.-Kuau Bayview offers consistent pride of ownership. It is walking distance to town via sidewalk. It is family friendly with a community park and cul-de-sacs that make for lesser through traffic. There are also lots of homes with ocean views in Kuau Bayview. Last but not least, there are few other options in Paia in this price range.
All of the above make Kuau Bayview one of the most in demand neighborhoods on Maui let alone the North Shore. The Maui Real Estate Team has been the leading brokerage for buyer and seller representation in Kuau Bayview over the last three years. If you are a buyer interested in the neighborhood, we would be happy to keep you informed of new opportunities in the neighborhood. If you own a home in the neighborhood, we would welcome the opportunity to sit down with you to discuss how recent market dynamics have impacted your home’s value. Contact The Maui Real Estate Team to arrange a free consultation.