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Paia Real Estate 2015 Midyear Market Update

Paia town has grown in acclaim over the last 15 years. Back in the 80s and 90s, Paia was only really a destination for windsurfers. It is still a big draw for water sports enthusiasts, but now it attracts a broader cross section of people. People are drawn to its plantation style charm, bohemian vibe, assorted boutiques, good restaurants and yoga studios. Paia has been featured in national publications and made lists as one of the Best Beach Towns in America. While demand and awareness has grown for Paia Real Estate, the community has seen very limited growth in housing inventory over the last 20 years. North Shore Village was the last new development in the town, and construction on that community was completed in 2003. Prospects for increased housing inventory remain limited in the near term as the community is hemmed in by cane fields. The static supply and growing demand has helped to fuel strong growth in pricing.

Earlier this week, we did a midyear update on the Spreckelsville market. Today, I wanted to look at the community of Paia. Spreckelsville is actually considered to be a neighborhood of Paia. Properties in Sprecks are part of the Paia MLS listings. Last year we decided to split the communities of Paia and Spreckelsville when we did our market analysis. We feel that they are different enough markets that they merit a separate discussion. This post will look exclusively at Paia and the neighborhood/community of Kuau located just to the East of Paia.

The map above shows the homes that sold as well as the homes that are currently under contract. If you click on the individual pins, you will find information on the sales price, closing date and property specifications.

There were 9 homes sold in Paia during the first six months of the year with a median price of $599,000. There were 5 homes sold in the first six months of 2014 with a median price of $644,500. There was also a condo sold at Kuau Plaza in the first half of 2015 compared to two condos sold during the first half of 2014. There were no land sales in Paia thus far this year compared to one during the first half of 2015. There were some other things that I thought were notable about the Paia Real Estate market during the first half of the year.

  • The Skill Village area was the busiest neighborhood for sales activity with three sales and an additional four home sales pending currently. Kuau Point also saw three homes sell, although one of those sales was a private sale that did not involve Realtors.
  • That private sale closed for $1,200,000. That was the highest priced transaction in Paia to start the year. The property is located at 4 Kaiholo street right next to Mama’s Fish House. Based on Public Records, it appears as if it was purchased by the owners of Mama’s.
  • There was only one other sale over $1,000,000 in Paia during the first six months of 2015. It was for a four bedroom, two bath condominium home on Kuau Point.
  • Kuau Bayview was quiet in terms of sales activity with only one close and no properties currently listed on the market. That said, the one sale was a new record high for the neighborhood.

This was a pretty good first six months of the year for the Paia Real Estate market. The bulk of the activity was focused on the entry level of the market. It was the increased activity with lower priced properties that drove the decrease in median sales price compared to last year. If anything, the increased activity at lower price points has resulted in rising prices. Neighborhoods like Skill Village and Lower Paia are right below the all time high sales prices that we saw in the last real estate boom. There are potentials for records to be broken among the pending sales.

While the low end market saw strong activity, the Paia high end market and specifically the oceanfront market have been quiet. There have been nine different properties listed for sale on the ocean during the first six months of the year. There are eight oceanfront homes listed currently. There have been no sales and no properties under contract. You can get a sense of the location and additional information on the current Paia oceanfront home inventory via the map below.

With eight ocean and beachfront homes on the market, Paia has more oceanfront inventory than any other community on the island. Many of those homes have been on the market for a considerable amount of time. I would imagine that there might be some opportunity for oceanfront buyers based on the depth of inventory. It will be interesting to see if any buyers step forward for these properties before the end of the year.

The overall Paia market looks like it will continue to see a fair amount of activity at lower price points. There are 5 properties under contract under $700,000 as it stands currently. That part of the market has the potential to cool off if expected interest rate increases occur sometime in the fall. There is a bit of gap in inventory between the entry level of the market and the oceanfront inventory. There are only two properties listed for sale for more than $700,000 that aren’t oceanfront. This could be a good time to go to market for potential sellers in Kuau Bayview or for non-oceanfront owners along the ocean side of Hana Highway. Well priced properties in those areas should be attractive to buyers. You can see the current Paia Real Estate Inventory on MauiRealEstate.com. Contact The Maui Real Estate Team if you have questions on Paia or need assistance buying or selling property. Our office is located in downtown Paia. We keep a close eye on the market and our ears open for unlisted properties.


Maui County Property Tax Rates 2015/2016

The first property tax bill of the 2015/2016 fiscal year went out to Maui Property owners last week. That was a good reminder for me that we have yet to publish the property tax rates for this fiscal year on this blog. This post gives prospective property buyers a sense of what type of property taxes they might expect when purchasing a place on Maui. This is another year where we have seen a decrease in rates. Maui County Council has been trying to offset increases in assessed values by decreasing the rates per assessed value. Here are the rates for the next fiscal year as compared to the rates from last year.

  • The Residential rate decreased from $5.57 to $5.40.
  • The Apartment rate decreased from $6.20 to $6.00.
  • The Commercial rate decreased from $6.83 to $6.60.
  • The Industrial rate decreased from $7.07 to $6.85.
  • The Agricultural rate decreased from $5.86 to $5.75.
  • The Conservation rate decreased from $6.06 to $5.90.
  • The Hotel and Resort rate decreased from $9.11 to $8.85.
  • The Time Share rate decreased from $15.07 to $14.55.
  • The Homeowner rate decreased from $2.78 to $2.75.
  • The Commercialized Residential rate decreased from $4.46 to $4.35.

All of the rates above are per $1,000 of assessed value. Homeowners are also eligible for a $200,000 exemption which may be deducted from their assessed value. For example, someone who qualifies for the homeowner classification that has a property assessed for $700,000 would have $200,000 deducted from their assessment for a net taxable value of $500,000. Applications for homeowner exemptions should be submitted to the county by December 31st. Check with the county for the latest and most up to date eligibility guidelines. The minimum property tax rate bill for Maui County is $150. Taxes are paid in two installments with bills sent in August and February. The county has an online resource available entitled Understanding Property Taxes which goes into more details on assessments, how properties are classified and timelines.


By » 7/27/2015 » in

Spreckelsville 2015 Midyear Real Estate Market Update

Over the last few years, the community of Spreckelsville has established itself as one of the hottest real estate markets on island. The strength of the market is evidenced by a number of high dollar sales and numerous properties that have sold without ever hitting the MLS. The community has become a popular choice for both Kama’aina and second homeowners. Residents are drawn to the community due to its great beaches, access to world class water sports, the Maui Country Club, proximity to Paia town, and the overall convenience to island amenities. After a scorching year of sales in 2014, we suspected that the 2015 market might have a tough time replicating last year’s volume of transactions. Now that we are over six months into the year, let’s take a look at what has happened in Spreckelsville thus far this year.

The map above shows the location of and information about the four properties that sold in the first half of 2015 as well as the two properties that are actively listed. The four properties sold is a decrease from the seven that were sold during the first half of 2014. Here are a few noteworthy items about the Spreckelsville sales from the first half of the year.

  • The four sales consisted of two homes, one Sugar Cove condo and one parcel of land.
  • A significant number of sales in Spreckelsville over the last few years have been unlisted properties. This proved to be true in the first half of 2015 as two of the four sales were sold prior to listing.
  • The sale of 161 Makahiki set a new high price for a home in the Kai Holu subdivision. The Kai Holu Subdivision consists of 17 agriculturally zoned lots in the middle of the neighborhood along Makahiki Street and Cane Place.

There is going to need to be a significant uptick in activity during the second half of the year for 2015 to come close to matching last year’s 14 total sales. With only two properties on the market currently in Sprecks, I have a tough time foreseeing us making up the difference. You never know though, we have already mentioned how this neighborhood is known for unlisted property sales. You can check out photos and more details for the current inventory of Spreckelsville Real Estate Listings on MauiRealEstate.com. Contact The Maui Real Estate Team if you have questions on Sprecks or to see if one of us might have a line on an unlisted property or two. Our broker and one of our agents call the neighborhood home. They can literally say that they know this neighborhood like their own backyard.

Haiku Acreage Near Jaws

Last week, we brought a great new land listing to the market in the North Shore Community of Haiku. This 17 acre parcel of land is located on the ocean side of Hana Highway just a short distance from the world renowned, big wave surf break Jaws. The lot includes two installed county water meters, substantial Hana Highway frontage and a perfect building site tucked away from the rest of the property. The building site offers beautiful ocean and East Molokai views and a preferred Northwestern orientation. The acreage makes the property a good fit for someone looking for an equestrian property or an agricultural operation. The views, location and the privacy make it well suited for someone looking for an estate.

4505 Hana Highway Makai Views

Ocean Views along the private road leading to 4505 Hana Highway

4505 Hana Highway in Paia with Mauka Views

The property is roughly 15 minutes from Paia town and ten minutes from Ho’okipa Beach Park. With good restaurants, good yoga studios and a new grocery store coming to Haiku, you don’t even have to venture that far for nice amenities. This property is offered for $1,195,000. Check out the 4505 Hana Highway listing page for additional photos and details. You can contact The Maui Real Estate Team with questions or to arrange a viewing of the property.

By » 7/17/2015 » in

Sneak Peek at the June 2015 Maui Real Estate Statistics

It is hard to believe we are already midway through 2015. It seems like time moves faster and faster. I think my own personal time space continuum has ramped up with a 19 month old running around the house. Since we are midway through the year, our “Sneak Peek” at the June Maui Real Estate Stats is going to be somewhat abbreviated. This month’s edition is going to be more limited on the analysis. I have some additional posts scheduled for later in the month that will look at the mid year numbers for a number of communities around the island. Those stats posts will have a little more analysis specific to individual communities. In the interim, here are the June 2015 stats.

June Maui Real Estate Sales Volume and Median Prices

June 2014 and June 2015 Maui Real Estate Sales Volume Comparison

The chart above compares the sales volumes for homes, condos and land in Maui County, Hawaii during June 2014 and June 2015

By my count, Maui Realtors reported 99 homes sold last month with a median price of $650,000. That compares to 93 homes sold at a median price of $530,000. That calculates to a 6% increase in volume and almost a 23% increase in median price when comparing the two Junes.

I counted 98 condos sold with a median price of $528,184 in June of 2015. The previous June, there were 94 condos reported sold with a median price of $444,500. That is a 4% increase in sales volume and roughly a 19% increase in median.

There were 13 parcels of land sold in June with a median sales price of $395,000. Last June, there were 18 lots sold with a median sales price of $545,500. That is a 28% decrease in sales volume and a 28% decrease in median price.

I have just one quick comment on the numbers above. If you are a regular reader of our stats posts, you have heard this before. That said, it is worth repeating. The change in medians above are not a direct reflection of the change in property values. The increase in median in sales price for homes and condos is influenced in large part to the decrease in inventory on the low end of the market and an increase in activity at higher price points in the market.

Other Notable Numbers From the June Maui Real Estate Sales Activity
While compiling the sales volumes and medians, I came across a few more notable numbers worth sharing.

  • The highest price home to sell last month was 102 Honolua Place in Kapalua. The four bedroom, five and a half bath home in the Plantation Estates Subdivision has over 6,500 square feet of living space on 2.8 acres of land overlooking Honolua Bay.
  • This was a pretty strong month for luxury home sales with Honolua Place just one of 12 total sales over $2,000,000 last month. There were 2 other sales in Kapalua, 3 homes in Lahaina, 3 in Wailea, and 1 each in Kula, Kihei, Molokai and Ka’anapali.
  • It is pretty rare to see high end Molokai sales. This is the first Molokai sale over $2,000,000 reported on the Maui MLS since 2006.
  • While I am not sure it is significant in the scheme of things, I thought it was interesting that the sales over $2,000,000 included one bank owned property and one short sale.
  • The highest priced condo transaction last month was $3,000,000 for a three bedroom, three and a half bath unit in Ho’olei. This particular unit was on the top row of the development. Due to superior views, the top row units sell at a premium.
  • While the luxury home market was particularly busy, the luxury condo market was comparatively quiet. There were only two other sales over $1,500,000 in addition to the Ho’olei close. Those sales were at the Royal Mauian in Kihei and the Ironwoods in Kapalua.
  • There were two lots that sold for over $1,000,000 last month. Both of those sales were in Kapalua.
  • There were 13 bank owned or REO sales reported on the MLS last month. In June of 2014, there were 13 REO sales.
  • There were 8 short sale transactions that closed successfully in June of 2015. By comparison, there were 13 short sales that closed in June of 2014.
  • Pending Sales in June
    The June sales are a reflection of buyer demand largely in March, April and May. We like to track the pending sales so that we have a better sense of more recent market demand.

    June 2014 and 2015 pending sales comparison

    The chart above compares the number of properties in Maui County, Hawaii that went pending in June 2015 with June 2014.

    June was a good month for pending sales with homes, condos and land all performing better than last June. The condo pending numbers were somewhat striking as condo sales for the first half of the year have lagged behind what we saw in 2014.

    June Wrap Up
    The June sales numbers suggest that market conditions have been fairly consistent throughout 2015. Buyers will find that the lower price points of the market have limited inventory and well priced properties can be particularly competitive. As you go higher in price in the market, there is more inventory to choose from. That said, well priced properties can still go quickly. Sellers will find that market conditions vary depending on town, price point and neighborhood levels. Well priced and well cared for homes are generally selling quickly. If you want to sell quickly, look closely at recent sales in your neighborhood. Sellers who are priced well above comparable sales will find that buyers are being more discerning and looking for value. Contact The Maui Real Estate Team if you have questions on the stats or if you are interested in buying or selling property on Maui. We would welcome the chance to sit down and learn about your needs. Stay tuned for more posts looking at the mid-year sales numbers around the island.


    Haiku High End Real Estate Market Sees an Uptick in Sales

    The recovery of the Maui Real Estate market since the last downturn has been uneven. Some communities and some price points have seen a strong recovery, while other places and price points have languished. The community of Haiku on Maui’s North Shore has seen reasonably strong demand for homes under $1,000,000. Well priced properties in that price range can sell very quickly. Once you got over $1,000,000, the demand has been more limited. Or I should say, it has been more limited prior to the start of this year. It appears as if the higher price points of the Haiku market are starting to come to life.

    Haiku Million Dollar Home Sales Volume Chart

    This chart shows sales of homes over $1,000,000 in Haiku, Maui at six month intervals starting in 2008

    The chart above shows the volume of home sales over $1,000,000 in Haiku in six month intervals starting all the way back in the first half of 2008. The Maui Real Estate market remained a little more resilient than some other parts of the country during the last boom cycle. That is reflected in a pretty strong six months of sales in the first half of 2008. As the overall economic picture deteriorated in the second half of 2008, the Haiku high end market couldn’t avoid the impacts of the real estate and overall real estate crash.

    After the market tumble in the second half of 2008, the Haiku high end market remained stuck in the doldrums for the better part of six years. There were no more than 5 sales every six months with the exception of the first half of 2013 when there were 7 sales. Throughout this period, there was typically 20-30 homes listed in Haiku for more than $1,000,000. That means we have gone through periods where there has been 3 or more years of inventory on the market.

    While the Haiku high end market floundered, we saw a strengthening high end market in other parts of the island. This wasn’t just limited to the resort communities. Spreckelsville and Paia are just 10-15 minutes West of Haiku, but the gulf in market performance couldn’t have been greater. The Paia area has seen the three highest sales prices ever for the community since 2010. In Spreckelsville, a significant number of the homes went under contract before ever making it on to the MLS. It was this growing gap in value between Haiku and Paia that made The Maui Real Estate Team think that Haiku would eventually see a recovery. When the gulf grew too wide, the comparative values of the Haiku market were going to become appealing.

    The first half of 2015 appears to be the tipping point where the value of the Haiku listings over $1,000,000 became more desirable to the market. We have seen 10 sales through almost six months of the year with an additional four homes that are currently pending. The 10 sales included the two highest priced residential sales in Haiku history.

    • 355 Haiku Road also known as “The Baldwin Estate” sold for $9,750,000. This estate property included two parcels, 39 total acres of land and a 10 bedroom, 10.5 bath home with 8,716 square feet of living space. It also includes a pool area and a number of outbuildings.
    • 2651 Kalanikahua also known as the “Haiku Farm” sold for $5,650,000. This property is located right across the street from 355 Haiku Road. This property consists of 26.8 acres with 7 dwellings and 6 water meters. The Haiku Farm offered subdivision potential or the opportunity to create a stunning estate property.

    Despite these recent sales, there is still quite a bit of quality inventory and a number of good values listed for over $1,000,000 in Haiku. The Maui Real Estate Team has some listings that are great options for potential Haiku Buyers.

    Our listing at 680 East Kuiaha Road is a great opportunity for an eco-minded buyer who wants to live close to nature.

    330 West Kuiaha Road is quite simply one of the best luxury home values on the island.

    The Mea Makamae Ranch is a stunning property with almost 39 acres of land, a beautiful home, a deluxe cottage and lots of equestrian infrastructure.

    The Brando Estate offers 26.7 acres of beautiful land in the Huelo area of Maui. This off the grid home is perfect for those seeking a private and quiet refuge.

    The properties above are just some of the current inventory on the market in Haiku. You can see the full inventory of Haiku Homes for Sale at MauiRealEstate.com. Contact The Maui Real Estate Team if you would like to talk to someone about the current inventory in the Haiku market.

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