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Kapalua 2011 Midyear Real Estate Statistics

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This is the last of a series of posts on midyear statistics for selected Maui communities. I have previously posted on the North Shore, Upcountry, Wailea/Makena and Ka’anapali markets. Last but not least, we are going to take a look at how the Kapalua market performed for the first half of 2011. Included below is information on overall sales volumes, medians, individual condo developments, high sales prices, low sales prices and a few other tidbits of data I dug up along the way. I followed the stats with a few thoughts on the numbers.

A comparison of 2010 and 2011 midyear sales volumes for Kapalua Resort
Comparison of Real Estate Sales volumes for the first half of 2010 and 2011

There were a total of 7 home sales in Kapalua during the first half of 2011 at a median price of $2,200,000. That compares to 4 sales during the first half of 2010. The median price for sales during that period was $3,450,000. That’s a 75% increase in activity and a 36% decrease in median.

  • The highest sale in the first half of 2011 was $14,000,000 for an 11,399 square foot home on 2.48 acres in Plantation Estates. This was a new sales record for Kapalua.
  • The low sale for the year was $1,562,000 for a home in Pineapple Hill. That is the lowest sales price for a home in Kapalua since the year 2000. The one caveat being that the home sold this year was significantly smaller than the 2000 sale.
  • All of the homes being purchased show as cash transactions on the MLS.
  • The breakdown of home sales by subdivision was five closes in Pineapple Hill and two in Plantation Estates

A comparison of 2010 and 2011 midyear sales volumes for the different condo complexes of the Kapalua Resort
Comparison of Condo Sales Volumes in Kapalua for the first halves of 2010 and 2011

There were 11 condo sales in Kapalua during the first 6 months of 2011 at a median price of $830,000. There were 14 condos sold in 2010 at a median of $895,000. That represents a 21 % drop in volume and a 7 % drop in median when comparing 2010 to 2011.

  • The high sale or more accurately sales for the first six months of 2011 were $3,300,000. There were two units sold at that price at the Ritz-Carlton Residences on Kapalua Bay. Both were based on long term pre-construction contracts.
  • The low sale was $425,000 for a unit at Kapalua Golf Villas
  • There was one short sale and one bank owned sale among the eleven closes
  • Eight of the sales were cash, two used conventional financing and one was purchased with owner financing.

During the first half of 2011, there were four lots sold in Kapalua at a median price of $975,000. Needless to say, we outperformed the 2010 market when there were no land transactions recorded by midyear.

  • The high sales price was $1,050,000 for a lot in Plantation Estates.
  • The low sales price was $630,000 for a lot in Pineapple Hill.
  • All of the land purchases were cash transactions.

Looking at the numbers above, the first half of 2011 was positive overall, but there were some mixed signals in the market. Looking at the home market, there are some signs of improvement over last year. There is a clear increase in sales volume. We also saw a new record high sale. In addition to the record sale, there was another substantial sale at $9,600,000. Conversely, one sale at Pineapple Hill was the lowest priced single family home to close in Kapalua since the year 2000. It appears as if the Kapalua market is in line with the Wailea and Makena market in that we are seeing continued price decreases on a majority of properties. That being said, as with the Wailea and Makena market, there are some premier properties where the buyers are willing to pay an absolute premium.

The land market for Kapalua saw limited sales with four transactions, but that is a clear improvement over the complete absence of sales during the first half of 2010. The other thing to note on Kapalua’s land market is that the inventory is lower than the other Maui resort communities. Land sales for Maui in general have been very slow for almost four years. In that time frame, the island has compiled a surplus inventory that could take as long as 6 years to absorb based on recent sales volumes. The Kapalua market on the other hand has less than two years of inventory to be absorbed. Barring a drop in demand or a big influx of supply, this market may stabilize faster than other land markets.

The condo market was the one segment of Kapalua that clearly did not perform as well during the first half of 2011. Sales volume was down vs. the first half of 2010. Median prices were also down. While I think some of the drop in median can be attributed to decreases in values, there were also a few more million dollar plus sales last year which pushed the medium up. That being said, It looks likely that we are going to need to see some additional price adjustments in the Kapalua Condo Market to entice buyers. While other communities have been thinning condo inventory, Kapalua still has a substantial stock of condos for sale in light of the area’s average monthly sales volumes.

Contact the Maui Real Estate Team if you have any questions on these statistics or if you have interest in buying or selling property in Kapalua. You can search the entire inventory of Kapalua Homes for Sale and Kapalua Condos for Sale on MauiRealEstate.com.


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8/3/2011

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