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Development Opportunity in Paia

Paia has seen a significant increase in demand for real estate over the last 20 years. Its profile both as a national and internationally renowned beach town has grown with each new magazine or newspaper article that highlights the community. While demand has grown, there has been very limited increase in housing supply over that time. Outside of the Sprecklesville neighborhood, the last new development was in 2003. There are just a handful of vacant lots in the community remaining. This makes our listing in the Kuau area all that much more intriguing. The 14,478 square foot, R-1 zoned lot includes an existing 2 bed, 1 bath home. There is potential to add on to the existing home, and the zoning allows the potential to build another home and a cottage.

The location is about as close as you can get to the famous Ho’okipa Beach Park. This beach offers surfing, windsurfing, kiteboarding and stand up paddle boarding. The sheltered tide pools are a great place for kids to play. Mama’s beach is located just across Hana Highway from the property. It too has sheltered tide pool areas that are a good spot for kids. It also happens to be the backyard for Mama’s Fish House, arguably the best restaurant on the island. There are a variety of other surf breaks within close proximity to the property. Downtown Paia is less than five minutes drive away. There you will find more restaurants, shops, a great health food store, yoga studios and other amenities.

An aerial view showing a developable lot in the Kuau aea looking to the North West

View to the Northeast looking over the lot towards Hookipa Beach Park

The existing two bedroom, one bath home was built in 2011. It is a comfortable space with quality features including stained concrete floors, a storage loft, carport and private lanai. Since it is close to some of the island’s most consistent surf spots, there is plenty of room to store lots of different water toys.

The interior of the existing two bedroom, one bathroom cottage

Lanai of the Kuau Cottage

View of the lot in Kuau

This property is offered for $1,180,000. You can see more photos and details at the 744 Hana Highway listing page. Contact The Maui Real Estate Team to arrange a showing or to discuss the property with an agent.

By » 2/13/2018 » in

A Couple of Things to Watch in the 2018 Maui Real Estate Market

We are a few weeks into the New Year and the Maui Real Estate market appears to following similar dynamics to what we have experienced over the last couple of years. That is a continuation of price appreciation and relatively limited inventory. For the most part, it remains a seller’s market. That said, I think there will be a couple of things in particular to keep a close eye on this year.

Affordability Issues
This is something of a no brainer as the lack of affordable housing isn’t exactly something new on Maui. That said, I expect the conversation on affordability to heighten for a number of reasons. A considerable part of the local population is priced out of the housing market. With middle class wages relatively flat, a steady increase in prices and relatively slow pace of new construction, the situation is worsening. As of January 22nd, there were 502 homes listed as active on the island. Only 16 are priced below $500,000. That is a pretty shocking number. Buyers may find their buying power diminishing as the year progresses with the Federal Reserve expected to raise interest rates more this year. The increase in borrowing costs may push additional buyers out of the market who are already stretching to qualify for loans. Depending on how much rates increase, that could slow the rate of appreciation for property values at the entry levels of the market.

This is a big election year locally with a lot of state and county level offices being contested. I suspect that there will be considerable discussion of affordable housing in the race for the mayor and county council seats. Candidates will be challenged to come up with solutions that incentivize more affordable and work force housing while also addressing growing anti-growth sentiments. With high land costs, material costs and labor costs making new construction expensive, the solutions won’t be easy. Let’s hope that that there is some well thought out policy to address the issue rather than bad policy with good intentions.

The Impact of Tax Reform
The implications of the changes in the tax code on the Maui real estate market are not entirely clear. Anecdotally, it does not appear that many buyers have been deterred by the decreased real estate deductions in the new tax code. That said, a month of sales activity doesn’t give us a very complete picture. It may be the better part of a year or more before we know exactly how our market is impacted. New caps on mortgage interest deductions and the cap on deductions for state income and local property taxes have many economists thinking that higher priced real estate markets are likely to take a hit from the change in tax code. The thought is that the previous deductions were baked into pricing in higher priced real estate markets. Taking away from those deductions may cause prices to recalibrate due to the higher cost of ownership.

The change in tax code won’t just impact local buyers buying more expensive properties, it will also have an impact on second home buyers. If they have a larger mortgage already on their primary residence, they may not be able to write off any of the mortgage for their second home. Some of Maui’s biggest feeder markets for second home buyers come from the West Coast. Many of these buyers are more likely to see their net taxes go up due to changes in deductions on state and local property taxes. Will that be enough to deter some of them from purchasing the vacation rental condo on Maui that they were thinking about buying?

The one part of the market that may see a boost is the ultra luxury home market. The highest income earners were some of the biggest beneficiaries of the recent changes in the tax code. I could see sales of homes and condos priced $2,000,000 or above price range boosted if they deploy their additional wealth into discretionary purchases like a second home. With many of these properties being purchased as cash transactions, that will likely limit the impact of mortgage deductions.

I also expect that there could be a couple of indirect effects on the real estate market via the tax bill. We have already discussed the potential for increased interest rates this year. Some economists are suggesting that the tax cuts could lead towards inflation as an already strong economy overheats with additional stimulus. If the Federal Reserve sees too much inflationary pressure, the pace of interest rate increases could accelerate. The cut in corporate tax rates may also have an indirect impact on the market. A lot of economists expect that a good portion of the corporate tax savings will go into stock buy backs. The stock buy backs combined with a strong overall global economic picture have some economists projecting a continuation of the bull market that has been going on for the last nine years. Billy and I have long argued that there is a correlation between the stock market and second home buyers on Maui. The better the stock market does, the more likely people are to purchase a second home on the island. The strong stock market enables prospective to cash out on a portion of their earnings and make a discretionary purchase. The strength of the market may also just be enough to provide the psychological boost to make a large discretionary purchase like a second home.

As you can see, the dynamics of the local real estate market remain complicated. On a fundamental level, we have limited supply and a strong economy. The supply issues alone may be enough to keep prices going up. Affordability issues, the potential for increased borrowing costs, higher taxes for some buyers and decreased tax incentives could lead to an erosion of some of the demand we have seen. It is unclear how the push and pull of these dynamics will ultimately impact the market throughout 2018 and the years beyond. Contact The Maui Real Estate Team if you have questions about the market or if you are interested in buying or selling property on the island. We would welcome the chance to discuss market conditions and your real estate needs.

By » 1/24/2018 » in

Peahi January 14, 2018

Our broker Billy had the opportunity to head out on a boat to the world renowned big wave surf spot Peahi aka “Jaws”to watch the much balyhooed swell that hit over the weekend. Martin Lenny is one of the agents in our brokerage. His son Kai has established himself as one of the best big wave riders in the world. Billy had a front row seat for the action on one of Kai’s support boats on Sunday. The swell didn’t quite live up to expectations as the peak wave heights occurred overnight and the shifty conditions made it tougher to catch waves. That said, Peahi is one of nature’s true spectacles and it is an amazing perspective to see the waves from up close. Here are some photos that Billy took from the boat.

Beautiful unridden wave january 14 2018

A beautiful unridden wave at First Light out at Jaws on the morning of January 14th.

Kai Lenny Towing into a big wave on January

Kai Lenny towing into a big one early on the Morning of the 14th.

Shane Dorian Paddles into a big one on 1 14 2018

Big wave legend Shane Dorian on a big wave on January 14, 2018 at Peahi

Kai Lenny riding a good sized left on his foilboard at Jaws on January 14th 2018

Kai Lenny riding a foil board on the left at Peahi

A surfer making the drop on a "smaller" wave.

A surfer making the drop on a “smaller” wave.

Peahi with support boats and jet skis in the foreground on January 14, 2018

Boats and Jet skis in the foreground are dwarfed by a good sized wave.

Peahi is located just offshore from the cliffs along the Haiku coastline. The North Shore break comes to life when the surf reaches heights of 20 feet or more on the wave face. This typically happens between the months of October and April every year. The frequency of swells vary every year depending on the size and direction of storms in the Northern Pacific. Typically the storms that create the swell are located anywhere from 1,000 to 2,500 miles to our North and Northwest.

By » 1/17/2018 » in

Spreckelsville Golf Course Home

Recently listed! This executive home is located in the highly desirable Spreckelsville Neighborhood on Maui’s North Shore. The large five bedroom, four and a half bath home has 4,536 square feet of living space including an attached mother in law quarters. The home is distinguished by its quality construction, materials and finishing. Flooring includes both solid oak and travertine. The kitchen design is superb. Materials and appliances include Snaidero cabinetry, Granite Counters, Subzero, Bosch and Thermador. The snaidero cabinets and granite are also used in bathrooms around the home. Other amenities include a net metered photovoltaic system that helps the environment and keeps utility bills low.

The home is situated right on the Fourth fairway of the Maui Country Club golf course. The sun room off the back of the home is a great spot for taking in the golf course views. There is also a courtyard area in the front of the home with lava rock pavers and beautiful landscaping. It is a great place to take in the Spreckelsville sunshine and trade winds.

Looking from the Fairway towards 2409 Waipua

The covered lanai looks over the golf course of the Maui Country Club

The living room at 2409 Waipua

The dining area overlooking the golf course at 2409 Waipua

The Kitchen of 2409 Waipua on the Golf Course in Spreckelsville

The Outdoor Living Space at 2409 Waipua in Spreckelsville

This home is located within walking distance of Baby Beach, Sugar Cove and the Maui Country Club. These neighborhood amenities have made Spreckelsville a prized neighborhood to both residents and second home owners. It is also a short drive to the shops and restaurants of Paia, and it is located within ten minutes of a variety of stores and other conveniences throughout Central Maui.

This home is offered for $2,995,000. You can check out the 2409 Waipua listing page for additional photos and details. You can take a 3d tour of the property to appreciate its floor plan and finishes. Contact the Maui Real Estate Team to arrange a showing of the property or to discuss it with an agent.

Haiku Home with Big Ocean Views and a Cottage

Our office has an exciting new listing in Haiku on Maui’s North Shore. The property includes a three bedroom, two bathroom home and a two bedroom, two bath cottage located on just over one acre of land. From the moment you walk in the front door, you will be captivated by the big ocean view. Whether you are in the kitchen, the living room, the master bedroom or the large covered lanai, you will find big vistas of the beautiful, blue Pacific ocean. Other highlights of the home include a recently updated kitchen with with granite counter tops, new cabinets and newer appliances. Just next to the kitchen is a custom mango wood desktop and work station. The aforementioned covered lanai expands your living area during all but the most inclement weather. It is a fantastic spot for watching the clouds float over the Pacific or the frequent rainbows that you see in Windward Maui.

Ocean Views from 540 Kaiapa

540 Kaiapa Front of House

View from the front door of 540 Kaiapa Looking over the living room toward the view

The view from the living room of 540 Kaiapa

540 Kaiapa Master Bedroom

the kitchen of 540 Kaiapa

Kaiapa mango wood work station

The two bedroom, two bath cottage with its own carport has been recently remodeled. The kitchen is new as are the appliances. Each bedroom has its own private lanai. The cottage has been used over the last few years as a licensed Bed and Breakfast. Permits for bed and breakfasts in Maui are non-transferable. A new owner would need to apply for new permits.

Living Room of the 540 Kaiapa Cottage

Rainbow over the ocean from the Lanai of 540 Kaiapa

The lot of just over one acre lives a lot larger than its size. It is located at the end of a quiet dead end street with a large 70 acre parcel in front of the property. The seventy acres lends additional privacy and it helps to preserve the special views. The acre features a number of edibles including oranges, tangerines, bananas, Surinam Cherries, lemon, lime and mulberries. There are also a number of tropical flowers and the current owner still has plenty of room for a big brood of hens and a handful of goats.

This Haiku Home and Cottage are listed for $1,245,000. Check out the 540 Kaiapa Place listing page for additional photos and information on the property. Contact The Maui Real Estate Team to schedule a showing of the property. The cottage is only available to show on second viewings unless it is vacant. If you aren’t on island to see the property first hand, you can check out a 3d tour of the home and the Cottage.

Outstanding Kuau Location

Our office recently brought a great new listing to market in the Kuau area of Maui’s North Shore. This Hawaiian Plantation Style home has three bedrooms, two baths and a detached garage. Home amenities include newer appliances, hardwood and tile flooring and a spacious deck. The deck is a great spot whether you want to entertain friends or family or just enjoy the trade winds blowing through the palm trees.

The home is situated on a quiet dead end street. If you like ocean sports, 21 Meha Place is located within walking distance of a variety of surf breaks. Ho’okipa Beach Park is just a few minutes drive and the start of the Maliko Run is within 10 minutes for downwind paddlers. With all of the wind and wave options nearby, future owners may find their detached garage stuffed with water toys in no time. The property is within walking distance of Fresh Poke and other goods at the Kuau Store. Want to go out to dinner? Mama’s Fish House, also just a short walk, offers some of the best meals you could find in all of Hawaii. Paia town, just a few minutes drive to the West, provides even more dining options, a fantastic natural foods store, and a variety of boutiques and yoga studios.

The front of the condomonium home at 21 Meha

The Kitchen at 21 Meha in Kuau on Maui's North Shore

A bathroom at 21 Meha

The backyard of a home at 21 Meha in Kuau

This home is offered for $879,000. This is unit one of a two unit residential condominium. The area of land specific to this unit is 8,441 square feet. The listing agent for the home is the father of the seller. Check out the 21 Meha Place Unit 1 listing page for more photos and details. Contact The Maui Real Estate Team to discuss the property or to arrange a showing.

By » 11/24/2017 » in

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