Unofficial January 2010 Maui Real Estate Statistics

It has been a busy start to February for the Jalbert brothers. We have both been consumed with showings from both off island and on island buyers. That being said, I have been able to steal a few moments to take a look at the MLS and try to get sense of the January 2010 Maui Real Estate statistics. Here are the numbers that I found for the first month of the new decade.

There were 46 homes sold in January of 2010 at a median price of $469,000. This compares to January 2009 numbers of a 31 homes sold at a median of $558,000. The difference in sales volume amounts to a 48% increase in volume.

Condo sales volume for January was 74 units sold at median of $407,000. This compares to January 2009 numbers of 108 sold at a median of $805,000. This represents a 32% decrease in sales volume when comparing the two Januaries.

Land Sales for last month totaled 11 sold at a median of $583,000. This is a nice improvement from the numbers from January of 2009 which came in with 3 sales at a median of $70,000. This is a 367% increase in volume when comparing the two years.

Bank owned or REO listings and short sales continue to constitute significant portion of transaction volume. We saw a total of 17 bank owned properties close last month and 7 short sales. Of all of the home sales, 24% were bank owned or short sales. REOS nd short sales were 16% of the condo transactions. There was one bank owned sale among the land transactions.

The numbers above are interesting and are screaming for a little context. Home sales look strong and condos look weaker based on the year to year comparisons. The reality is actually close to the opposite of what is conveyed by the numbers.

The condo numbers for 2009 were grossly inflated in both median price and volume by something that I have called the Honua Kai effect. There were 65 Honua Kai closes in January of 2009 that stemmed from long term developer contracts dating back all the way to 2005. That compares to only 5 long term contract Honua Kai closes this year. When you strip out the Honua Kai sales, condo resales were significantly higher in 2010. Overall, the January 2010 numbers are in line with recent months. The condo market appears to be slowly regaining traction with activity happening in all segments of the market.

Home sales did show nice improvement went compared to last year. That being said, last January represented the absolute bottom for volume of new home sales. When you broaden your comparison, the January home sales figures were pretty weak. They were the third lowest monthly sales number in the last five years. Last month’s sales were down almost 50% from December’s sales numbers. What caused the big dip? Well, I can’t provide a definitive answer, but I think we may be able to get some clues from the auto market. When the cash for clunkers program was announced, there was a surge in auto sales that caused a much needed boost to the auto industry. That being said, during the months following the program, sales numbers dipped significantly. Buyers accelerated their purchase plans to take advantage of the opportunity of the Cash for Clunkers program. There were fewer potential buyers after the program expired. I think we may be seeing a similar phenomenon with home sales numbers due to the first time home buyer’s tax credit. While the credit was extended through April, there was a rush to get homes closed by the original deadline of November 30th. Some of those closes spilled into December when the extension was announced. The first time home buyer credit likely helped to increase sales volume in the fall while it may decrease sales volume for a month or two. It will be interesting to see how the next couple of months pan out to see if my theory has any credence.

The land market looks good in year to year comparisons, but it remains at a similar pace to what we have seen in recent months. This market is going to remain slow in terms of volume as loans remain scarce and prices adjust. The one thing to note about the land sales for January was that there was a small bump due to a land auction in West Maui. One developer sold five good sized parcels at the base of the West Maui Mountains in an auction. Prices for the five lots were well below recent comparable sales.

Overall, my message to buyers and sellers remains the same. Sellers need to continue to remember that this is a buyer’s market. The sellers that are having the best luck selling their properties are priced at or below comparable sales. Sellers who are fishing for peak market pricing aren’t getting any bites. Buyers are continuing to see opportunities at prices well below peak market. The best opportunities are attracting lots of buyers so it pays to have your financing squared away and get pre-approved for you loan before you start looking at properties. That allows you to be ready to strike when the right opportunity comes along. Contact us for assistance if you are in the market to buy or sell Maui Real Estate. Stay tuned for the official January Maui Real Estate statistics some time in the next week.

By Pete Jalbert R(S) » 2/4/2010 » in

Maui Sustainability Notes

Sustainability is an issue of critical importance for Maui and the rest of the Hawaiian Islands. Our island paradise is heavily dependent on imported fossil fuels and imported food stuffs. There have been quite a few efforts of late to start making Maui and other islands more self sufficient. I thought I would share a few articles that I came across in the last week related to the island’s sustainability efforts.

With its warm climate and year long growing season, Maui in many ways is an ideal locale for growing fruits and vegetables. That being said, much of our produce is imported from off island. Recently, we have seen a few more small scale farming operations emerging on island. It is more and more common to see Maui produce on the shelves of local grocery stores. I think that trend will continue over the next couple of years. One reason I believe that is because of the efforts of the Ulupono Initiative. Friday’s Honolulu Advertiser had an article on the Ulupono Initiative taking over the lease for Kapalua Farms. Kapalua Farms is currently a small scale organic operation that specialized in free range eggs, vegetables and herbs. It was operating on 8 acres. The Ulupono Initiative plans to expand the operation to 158 acres. It will take a few years to scale the operation and improve the health of the soil, but they have already doubled the number of employees working on the farm.

It is worth commenting on the Ulupono Initiative in and of itself. The initiative was started by Pierre and Pam Omidyar. Pierre is the founder and chairman of E-bay. He has been giving extensively to Hawaii non-profits including a recent 50 million gift to the Hawaii Community Foundation. He is also channeling a significant amount of money to for profit and non-profit entities focused on sustainability through the Ulupono Initiative. Specifically, they are supporting island efforts on waste reduction, alternative energy and local food production. The Ulupono Initiative looks like it will be an important presence in the growth of Hawaii sustainability efforts.

While browsing the web the other day, I stumbled across another Maui Company in the sustainability industry. Maui Eco Built offers power audits, photovoltaic power buildings, photovoltaic mounting structures and eco modular construction. The Maui Eco Built products and services that I thought were particularly interesting were the power buildings. If you are going to mount photovoltaic panels on your home, you typically need a good south facing roof line that is not shaded by trees. Of course, not all homes are going to have that ideal orientation. Home owners may also have concerns about mounting a PV system on an existing roof. If your roof is halfway through its shelf life, you may find yourself having to mount your solar system twice. Once when it is initially mounted and again when you need to replace the roof on your home. Maui Eco Built offers solutions to these challenges via photovoltaic car ports and smaller “power buildings. ” These structures offer you opportunities to mount PV in areas with good sun exposure without worrying about your existing roof.

Last but not least, I saw a Maui Time weekly article that captured some of the challenges that we are facing as Maui tries to implement alternative energies on a wider scale. Maui has seen significant growth in the number of homes and businesses that utilize photovoltaic power but are still connected to the grid. The appeal of these systems are obvious. Most systems will be sufficient to account for the majority of a home or businesses power needs. That can be a huge reduction in utility bills. The time to pay off the initial outlay for the system is shrinking as PV system costs decrease and utility costs increase. That being said, these systems can pose challenges to the grid. Demand for electricity from the grid from PV users can fluctuate based on time of day and cloud cover. Too much fluctuation in demand can cause stability issues with the grid. As a result, the Public Utilities Commission has set caps on the amount of PV users “per circuit” on the grid. There are parts of Maui that are rapidly approaching these limits. The PUC and the local utility are going to need to collaborate to see if there is room for additional capacity in these areas that are saturated. It also points to the need to improve the overall grid to accommodate more “soft power” electrical generation.

We will continue to keep an eye on green building and sustainability issues on the Maui Real Estate Blog. Contact us for assistance if you are looking for green properties on Maui.

By Pete Jalbert R(S) » 1/31/2010 » in

Sugar Cove, Spreckelsville, Maui

I just thought I would post a quick video that Billy shot on Saturday afternoon at Sugar Cove in Spreckelsville on Maui’s North Shore. Not only does the video show a beautiful day, but the water is particularly placid by winter time standards for this side of the island. It a good illustration of how dynamic the ocean can be on the North Shore. While the waves in the video are small and glassy , today we are experiencing a high surf warning with wave faces reaching heights of 25 feet at selected breaks.

Billy and I often talk about the appeal of the Spreckelsville lifestyle. There are world class wind and water sports accessible on the waters just off shore from this stretch of Maui coastline. What we may not mention enough is that this is a wonderful family area. Places like Sugar Cove and Baby Beach are great locations for kids to play on the sand and in the ocean. Please contact us for information on Spreckelsville Real Estate.

By Pete Jalbert R(S) » 1/27/2010 » in

Paia Youth and Cultural Center Hosting Fundraiser at Flatbread

Tomorrow night Tuesday January 26th, the Paia Youth and Cultural Center will be hosting a fundraiser at Flatbread in Paia. For every pizza sold on the night, Flatbread will be donating a portion of the proceeds to the Youth and Cultural Center. PYCC is a program based center nestled on the shores of Paia Bay. Programs available to the kids include a cafe, a media lab, skate park, service group, girls club and the nation’s one and only youth run radio station RadioPio. PYCC provides a safe and fun environment for over 500 members from the North Shore, Upcountry, Central Maui and other areas of the island. The Flatbread company opened its doors a few years back and has been a generous contributor to island non-profits since its inception. Their Tuesday night community night which features a different charity every week has helped raise thousands for local non-profits. Not only that, they offer great food and a fun environment for all. As people who suffer from wheat allergies, Billy and I love the fact that they offer gluten free pizza, gluten free brownies and gluten free beer! Come on by Flatbread tomorrow night for good food for a good cause.

By Pete Jalbert R(S) » 1/25/2010 » in

Friday Afternoon Maui Grab Bag

It has been a busy week which has left limited time for posting on the Maui Real Estate Blog. I thought I would post something of a grab bag of various subjects on another beautiful afternoon on Maui.

As expected, this winter season has seen a lot of activity and interest coming from our Canadian visitors. If you are a Canadian interested in purchasing property on Maui, you may appreciate our International Buyer’s Guide. This helps to give you a primer on the ins and outs of purchasing Maui Real Estate.

Our listing at 77 Nahele Road in Haiku is back on the market after falling out of escrow today. This is a great opportunity for the right buyer with two parcels of agriculturally zoned land in a very unique location all for $399,000. There is a 1.49 acre lot and a 4.25 acre lot. The larger lot has a 3 bedroom/1 bath home in very rough condition. This property has the potential to really shine with a little bit of hard work. Contact us for additional information or to arrange a showing.

Billy came across a pretty cool article on one of the last “almost” intact Apuha’as in Maui. Apuha’as were a form of land division in old Hawaii. These parcels of land ran from the ocean to the tops of mountains in narrow strips. This granted its owners access to resources from through Maui’s varied ecosystems. This article in the Wall Street Journal talks about a 10,000 acre ranch on Maui that includes all but the beachfront element of Apuha’a.

As I mentioned at the top of the post, this has been a beautiful day on Maui. We have had a pretty spectacular winter with lots of sunny skies and big waves. We had a long run of big surf that stretched from early December lost this week. We have been documenting the surf with a number of posts on the action at the Jaws Surf break. I haven’t been able to get out to Jaws of late, but I have seen some pretty cool photos and videos on the web. Here are some links to some of the recent big wave action.

It’s not just men who charge Jaws.

There are also a few surfers who paddle into Jaws without the assistance of Jet Skis.

Those are a few random musings on what is becoming a beautiful Friday evening on Maui. Please feel free to contact us for assistance with any of your Maui Real Estate needs.

By Pete Jalbert R(S) » 1/22/2010 » in

Kihei Opportunity

We just listed a property in the desirable Hale Kilohana neighborhood in Kihei. This great opportunity features a 2 bed/ 2 bath 1,225 square foot main house and a 500 square foot 1 bed/ 1 bath cottage. Take a casual stroll to Keawakapu or the Kamaole Beach Parks. Enjoy spectacular sunsets from the lanai or watch the sun rise over Haleakala. Host friends, family or tutu in the detached cottage. This home has been loved by the original owner for 25 years. Both homes feature vaulted ceilings for an open, airy feel. The house and cottage need some TLC and updating, but the bones appear to be good and the location is excellent.

main home on Kauhale Street in Kihei Maui

Cottage on Kauhale Street Kihei

This opportunity offers sunsets, quality location, post and pier construction for easy changes and 2 dwellings at a market driven price. This is not a short sale or a REO so there should be no delays or red tape. This home is offered at $649,000. Contact us for additional information. Click here for additional photos.

By Pete Jalbert R(S) » 1/16/2010 » in

Maui Real Estate Blog Archives