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Kai Makani 2014 Market Update

I live just up the road from Kai Makani. My family and I often enjoy the beaches that run in front of this North Kihei condo. In the summer, we enjoy playing in the summer surf on our stand up paddle boards. During the winter, the summer swell has given way to calmer waters. From the sands in front of Kai Makani, we can now enjoy the frequent whale sightings and the sun setting further south over the open ocean. Since my last Kai Makani blog post, I have kept a close watch on sales activity in this complex and wanted to give some highlights.

Ten units closed in 2014, 3 fewer than in 2013. Three apartments were 2 BR floor plans, and seven were 3BR.  High, median, and low prices were $595,000, $543,500, and $460,000 respectively. The average number of days on market was 136 days. Average price per square foot came in at $449.64.

kaimakanimedian

When comparing 2014 to 2013 median and average pricing, a first glance suggests significant rates of appreciation. Median sales price grew from $475,000 to $543,500 (14.4%) and average sales price grew from $487,923 to $541,190 (10.9%), year over year. There is likely more to the story. As it is with the Maui Real Estate Market as a whole, there are many nuances and layers of information hidden behind the numbers within a single complex and we must peel the onion to find out what’s inside.

It is interesting to note that 70% of the 2014 sales were 3 BR units, and the remainder were the largest of the 3 different 2BR floor plans. This is further punctuated by the fact that 3BR units make up only 36% of the total units at Kai Makani.  2013 was different as we saw a mix of floor plans including 3 sales of the smallest available 2Br units. Only 23% of the 2013 sales were 3BR units.

In addition to the square footage and floor plan, the location within the complex is also highly determinative of value. Units toward the front, particularly with direct ocean views command a higher price.  I mapped out the distribution of sales within the complex for both years and they appear quite similar.

Some of the appreciation we see year over year is a function of simple square footage.  There were more large units, particularly 3Br units sold in 2014 than in 2013.  But to what extent?  I wanted to try to get a handle on a more accurate representation of  value. When I eliminate the smaller apartments from the 2013 figures and run the numbers again, I’m still finding a healthy 5.5% increase in median, and a 8.6% increase in average pricing for 2014.

kaimakanisalesvolume

This chart shows the 4 year historical data on number of units sold at Kai Makani

You can check out the current inventory of Kai Makani Condos for Sale on MauiRealEstate.com. Whether you are buying or selling at Kai Makani, 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. I look forward to introducing you to this great Kihei Condo community.

The Numbers-A Rundown on the 2014 Maui Real Estate Statistics

Today’s blog is a look at the numbers for the 2014 Maui Real Estate Market. We give you the total sales volumes and the medians by property types. We also delve a little deeper looking at notable sales, communities that saw more activity and other noteworthy numbers from the past year.

Maui 2014 and 2013 Real Estate Sales Volumes by Property Type

This chart compares the Maui Real Estate Sales Volumes for Homes, Condos and Land in 2014 and 2013.

There were 941 homes sold in Maui during 2014 with a median sales price of $570,000. In 2013, there were 983 homes sold with a median price of $530,000. That is roughly a 4% drop in volume and roughly an 8% increase in median price.

There were 1,197 condos sold in Maui County during 2014 at a median price of $414,750. By comparison, there were 1,339 condos sold in Maui during 2013 with a median sales price of $374,000. That is an 11% drop in volume and an 11% increase in median price.

Maui Realtors reported 166 lots sold in Maui County during 2014 with a median price of $520,000. Last year, there were 219 lots sold at a median price of $399,000. That is a 24% drop in volume and a 33% increase in median price.

There are other notable numbers that are worth sharing from the 2014 Maui Real Estate Sales. Here are some of the highlights.

  • The highest priced home sale this year was $9,300,000 for an oceanfront estate at Makena Place. This beautiful home has four beds, four and a half baths and over 4,000 square feet of living space.
  • That was one of 61 homes sold over $2,000,000 in 2014 and one of 15 sales over $5,000,000. In 2013, there were 47 sales over $2,000,000 with 12 of those sales priced over $5,000,000. That is an increase of almost 30% on homes over $2,000,000 and 25% for homes over $5,000,000.
  • The Wailea and Makena area was the busiest market for high end sales with 14 closes over $2,000,000.
  • On the other end of the spectrum, the lowest priced transaction in 2014 was $1 for a leasehold bank owned home on Molokai. The lease for the home was set to expire in December.
  • Kihei was the busiest community for home sales in all price ranges. There were 171 homes sold by Realtors in Kihei during 2014.
  • The total dollar volume of homes sold was $818,163,161. In 2014, there was $773,479,738 of homes sold in Maui County. That is roughly a 6% increase in the total value of homes sold when comparing this year to last year and the highest dollar volume over the last five years.
  • The 941 homes sold was the second highest annual total sales volume over the last five years behind 2013.
  • This chart shows the volume of Maui Home Sales over the last five years

    This chart compares the annual volume of homes sold in Maui County over the last five years.

  • The highest priced condo sale was $8,250,000 for a four bedroom, four and a half bath unit at the Montage Residences Kapalua Bay. That condo has an impressive 4,050 square feet of living space.
  • That was one of 83 condos sold over $1,500,000. Of the 83 condos sold, an impressive 13 were over $4,000,000 in price. In 2013, there were 76 condos sold over $1,500,000 with 9 of those sales over $4,000,000. That is a 9% increase in condos over $1,500,000 and a 44% increase in condos over $4,000,000.
  • Honua Kai saw the most high end sales activity with 27 closes over $1,500,000. It also led the way for overall sales with 73 total transactions for 2014.
  • The lowest priced condo sale on Maui in 2014 was $39,500 for a two bedroom, one and a half bath condo at Harbor Lights.
  • The town of Kihei saw the most condo sales activity with 428 total units sold.
  • The total dollar volume of condos sold in Maui County during 2014 was $751,850,728. That is down from the $764,301,283 worth of condos sold in 2013. That is roughly a 2% decrease in dollar volume. The 2014 total was the second highest dollar volume over the last five years.
  • The 1,197 condos sold in 2014 was the third highest annual total over the last five years.
  • Five Year Condo Volume Maui County

    This chart shows the volume of Condo Sales in Maui County during the last five years.

  • The highest priced land transaction of 2014 was for a parcel of beachfront land in Ka’anapali. The .87 acre lot sold for $6,900,000.
  • That was one of 25 parcels of land sold for over $1,000,000 in 2014. In 2013, there were 28 parcels of land sold for over $1,000,000. That is an 11% decrease.
  • Wailea and Makena had the most activity with five sales over $1,000,000.
  • The lowest priced land sale was $35,000 for a 1/4 acre lot on Molokai.
  • Ka’anapali had the most land sales activity with 27 total lots sold in 2014
  • The total dollar volume for =lots sold in Maui County during 2014 was $119,330,445. That is down approximately 23% from last year’s total of $155,596,747. The 2014 total was the second highest total dollar volume of the last five years behind 2013.
  • The 166 lots sold was the third highest annual total in the last five years.
  • Land Sales Volume in Maui County over the Last Five Years

    This chart compares the last five years of land sales volume in Maui County.

  • There were 115 bank owned properties that closed in 2014. That was down 5% from the 121 bank owned properties that sold in 2013.
  • There were 97 successful short sale transactions completed in 2013. That is down 56% from the 220 short sale transactions that were completed in 2013. This isn’t a big surprise with the equity position of more and more sellers improving.

That’s it for the notable numbers from the 2014 Maui Real Estate market. If you missed it, you can check out our post “Four Trends That We Saw in the 2014 Maui Real Estate Market.” We still have more 2014 year end stats posts coming with additional numbers and analysis of individual condos, neighborhoods and communities from around the island. Stay tuned…

December 2014 Maui Real Estate Statistics

“Just the stats Ma’am”. To paraphrase Joe Friday, that’s the focus for this month’s Sneak Peek at the Maui Real Estate Statistics. Since it is the end of the year, I am going to limit my market analysis and focus on the numbers. Look for more in depth analysis in the bevy of other stats posts we will continue to post over the next few weeks. Without further ado, here are the numbers.

December Maui Real Estate Sales Volumes and Median Prices

December 2014 Maui Real Estate Sales Volume Table

A comparison of the December 2013 and December 2014 Maui Real Estate Sales volumes by property type.

This chart compares the real estate sales volumes for Homes, Condos and Land in Maui County, Hawaii during December 2013 and December 2014.

This chart compares the real estate sales volumes for Homes, Condos and Land in Maui County, Hawaii during December 2013 and December 2014.

There have been 63 homes reported sold in December in Maui County with a median price of $565,000. The December 2013 sales totals were 78 homes sold with a median of $512,500. That calculates to a 19% drop in sales figures when comparing this year to last year and a 10% increase in median price.

There were 121 condo sales reported in December with a median price of $380,000. There were 120 condo sales the prior December with a median price of $365,000. That is a little less than a 1% increase in sales activity and a 4% increase in median when comparing this December to last December.

There were 12 land sales reported during December 2014 with a median price of $650,000. Last December, there were 23 sales reported with a median price of $390,000. That is a 48% decrease in volume and a 67% increase in median price.

Other Notable December Maui Real Estate Sales Numbers
While compiling the sales volumes and medians for December, I came across some other notable numbers from the December Maui Real Estate Sales Activity that I thought were worth sharing.

  • The highest priced home sale in December was $2,200,000 for a home in the Pineapple Hill neighborhood in Kapalua.
  • That was one of three homes sold over $2,000,000 last month. The other two were sold in Kipahulu and Kahana respectively.
  • The highest priced condo sale in Maui County during December was $2,625,000 for a unit in the Terraces at Manele Bay on Lanai.
  • That was one of 5 condo sales over $1,500,000 in December. All four of the other sales were in Honua Kai.
  • There were two land sales over $1,000,000 in December.
  • There were 12 Bank Owned sales in December compared to 11 sales in December of 2013.
  • There were 6 successfully completed short sales in December. There were 14 short sales completed in December in 2013.

A Few Quick Thoughts on the December Stats
As mentioned above, I wanted to limit commentary and analysis in this month’s post, but there were a few numbers that deserved some comment. The condo sales were a positive sign after seeing slower activity throughout the second half of the year. December was only the 4th month of the year where 2014 sales outpaced 2013 numbers. It will be interesting to see if this month is a blip or if condo sales activity will pick up as we begin 2015. The home sales were pretty low for the month, but I would be reticent to say that is the start of a particular trend. Throughout the year, there has been a fair amount of variability in performance compared to the same month in 2013.

The land market has a more clear cut trend with six straight months of slower sales than the same month of 2013. While 2013 numbers were bolstered in part by some new development activity, the 2014 sales didn’t have the same tailwinds. Add in diminished inventory at the entry point of the market and you end up with a reduction in sales activity.

December Maui Pending Sales
Sales are in some ways a look back at past market demand. Most transactions on Maui take 30-60 days to close. To get a better sense of more current demand, we also document the pending sales for each month.

Maui County December Pending Sales Chart

This chart compares the number of properties that went under contract in Maui County by property during December 2014 and December 2013.

December can be a slow month for sales as holiday activities can put real estate purchases on the back burner. However, it looks like there was decent activity in the Maui market in December. The number of homes that went pending was particularly surprising and should translate to a fair number of closings in January.

More Stats to Come…
We will have a lot of other posts looking at year end statistics for all of Maui County as well as a handful of communities around the island. In the interim, feel free to contact The Maui Real Estate Team with questions on the market or for assistance buying or selling property.


Four Trends That We Saw in The Maui Real Estate Market in 2014

With the year coming to an end, I wanted to take a few minutes to highlight four trends that I saw in the 2014 Maui real estate market. I also wanted to give a few thoughts on what was the driving force behind those trends and my predictions on what trends may continue or emerge in 2015.

Shrinking Inventory at The Entry Level
Housing options at the lowest price points of the market have been steadily shrinking over the last 18 months. There are fewer lower priced distressed properties and rapid appreciation during 2013 meant a lot fewer options for buyers interested in getting their foot in the door. For those looking for a home, inventory under $400,000 is becoming exceedingly rare with limited options all the way up to $500,000. In the condo market, the options under $200,000 are becoming increasingly scarce. It is getting harder to find vacation rental condos under $300,000.

Slowing Condo Sales Volume
The total number of condos sold this year is going to be down roughly 12% below what we saw last year. After a couple of particularly slow sales months earlier this fall, I took a look at what may be driving the drop. In my September Maui Real Estate Statistics, I analyzed the distribution of sales via price point and found that the biggest drop in sales was occurring at the bottom of the market. This would appear to suggest that the drop in sales activity has been largely driven by an absence of inventory.

Slowing Rates of Price Appreciation
During 2013, the Maui Real Estate market saw segments that experienced extremely strong rates of appreciation. There were some entry level condos that rose in value as much as 80% over bottom of the market prices. Entry level homes saw more modest appreciation, but there were some communities that saw prices jump 20% or more in 2013 alone. With the last downturn still fresh in many buyers minds, I think some buyers are wary the market won’t be able to sustain the same levels of appreciation. I also think the jump in values of 2013 pushed the market beyond some buyers means. That makes it not much of a surprise that we saw slower rates of appreciation this year. That was most evident in entry level condos where prices have seen very limited increases in value this year.

Continued Strength in the Luxury Market
The luxury home and condo market saw continued improvement in 2014. Condo sales over $1,500,000 were up 9% over 2013. The luxury condo market was bolstered by heightened activity at the Honua Kai Resort and the popularity of the Montage Residences on Kapalua Bay. Luxury home sales over $2,000,000 had an even stronger year with roughly a 30% increase in sales activity. Another strong year in the stock market and overall improved economic conditions helped bolster luxury market activity.

Now that we have covered the four major trends that I saw in 2014, what trends do I expect to see in 2015? I expect all four trends noted above continuing into 2015. Entry market buyers are unlikely to see an influx of new listings to satiate the considerable demand for more affordable housing options. I would imagine that limited entry level inventory will keep continue to impact condo sales volumes. I am not sure if that will result in a continued decrease in activity or similar demand to what we saw this year. I would lean towards the latter. I don’t expect 2015 to be a year of double digit price increases. The one X factor could be the introduction of a broader pool of buyers due to lowered down payment requirements by Fannie and Freddie. That may boost demand a little which in turn could impact pricing.

I would expect that the luxury market will continue to perform well based on positive economic forecasts. Luxury buyers should have lots of new inventory to choose from with more units available at Montage and Honua Kai. There are two new condo developments expected to hit the market in Wailea. Last but not least, Discovery Development should be starting sales of their properties down in Makena.

One last thing that I think will be worth watching in 2015 is the impact of foreign buyers on the market. In particular, I suspect that we are likely to see fewer Canadians buying in the Maui market. Maui has been an extremely popular locale for Canadian second home buyers due to the recent strength of the Canadian Dollar. With the Looney slipping in value and the Alberta oil economy slowing due to shrinking gas prices, I would expect we may see a few less Canadian buyers.

It will be interesting to take a look back at the end of 2015 to see if my predictions come to fruition. In the interim, stay tuned to the Maui Real Estate Blog. I will have a whole lot more stats and market analysis for the island as a whole, specific communities and even neighborhoods. Contact The Maui Real Estate Team if you have questions about the market or you would like to discuss your real estate needs.


Mea Makamae Ranch Pictorial

The Mea Makamae Ranch is a 38 acre estate property listed for sale in Haiku, Maui. The ranch includes a 4,200 square foot main house with a 2,400 square foot garage; a deluxe, two bedroom, 1,000 square foot cottage; a small Christmas Tree Farm; and a tack room, round pen and seven gated paddocks for equestrian activities.

We recently had photographer Pete Swanzy pay a visit to the Ranch. Pete spent a morning last week snapping some pictures of the 4,200 square foot main home.

Mea Makamae Ranch Palms Exterior
Landscaping around the house includes soaring Coconut Palms, Tropical Flowers and Bamboo.

The kitchen of the Mea Makamae Ranch

The Stove at the Mea Makamae Ranch
The Kitchen in the main house of the ranch is well suited to entertaining with quality appliances including a gas range. There is also a big pass through to the large covered lanai.

Mea Makamae Ranch Great Room and Kitchen
The kitchen, dining and living room are open and airy. A fireplace makes for a cozy atmosphere on cool Haiku nights.

Mea Makamae Ranch Master Bedroom
The master suite is 1,000 square feet with a large private lanai that offers views over the pasture areas towards the ocean.

Mea Makamae Ranch Master Shower
The Master Bath includes a large walk in shower…

Mea Makamae Ranch Tub
…and a vintage claw foot tub.

Mea Makamae Ranch Upstairs Living Room
This is just half of the second upstairs living room that also has enough space for a home gym.

The Mea Makamae Ranch is offered for sale for $6,400,000. Check out the Mea Makamae Ranch listing page for additional photos and details. You can also check out our Mea Makamae Ranch Video and our Mishka at Mea Makamae Broker’s event to get a better feel for the Ranch lifestyle. Qualified buyers may contact The Maui Real Estate Team to arrange a tour of this beautiful Maui Equestrian Property.


By » 12/29/2014 » in

Haiku Plantation Style-Well Positioned in the Market

We are excited to announce that the sellers of our listing at 160 Laenani in Haiku have made a nice price reduction right at the start of Maui’s peak home buyer season. This home has four outstanding attributes that make it a compelling offering for North Shore home buyers.

  • Size.This property includes a three bedroom, two and a half bath home with over 3,000 square feet of living space and over 1,100 square feet of additional lanai space. There is also a separate one bedroom/one bath ohana with a carport and a nice covered lanai. The two structures are located on a spacious, fenced and gently sloped two acre lot.
  • Aerial view of a home at 160 Laenani Haiku

  • Quality. Hardwood floors, vaulted ceilings, lots of built in bookshelves, a sunken living room, granite kitchen counters and stainless steel appliances are just some of the quality features associated with this Haiku home.
  • The kitchen area of a home at 160 Laenani Street in Haiku

    Living area of 160 Laenani in Haiku

  • Views. This home boasts beautiful views of the ocean, Maliko Gulch, The West Maui Mountains and the East End of Molokai. Summer Sunsets can be spectacular.
  • 160 Laenani sunset views from the Back Porch

  • Location. It’s tough to find a better location in Haiku. You are about five minutes drive from the Haiku Cannery and Haiku Town Center. There you will find find restaurants like Colleen’s, Nuka, Maui Kombucha, Hana Hou and Veg Out; a small grocery store; a fitness center and a Yoga Studio. The home is just over five minutes from Makawao’s restaurants and shops. Paia is fifteen minutes away and the world renowned Ho’okipa Beach Park is even closer. Families will appreciate all of the good education options that are within in a short distance of this location. This home is located in a nice microclimate within Haiku with not too much rain and cool night time temperatures.

This quality Haiku property is now offered for $1,595,000. Check out the 160 Laenani Street, Haiku listing page for additional photos and details on the property. Contact The Maui Real Estate Team to arrange a showing.

By » 12/22/2014 » in

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