Having passed the half way point of 2012, I thought it might be worth taking a look at how some of the real estate markets around the island are performing. There is no better place to start than Paia town where the Maui Real Estate Team office is located. When speaking of the Paia market, we also include the Spreckelsville and Kuau neighborhoods that are adjoining Paia. These Maui North Shore communities are popular due to their central location; access to great ocean sports; and the charms and character of the shops, galleries and restaurants of Paia. Here are the numbers followed by some thoughts on the Paia Real Estate market.
There were 16 homes sold during the first half of 2012 at a median price of $457,500. Last year, there were 14 sales at a median price of $567,000. That is a 14% increase in volume and a 19% decrease in median prices. There was one condo sold in the Paia area in the first six months of 2012. There were none sold during that same period last year.
Here are a few other numbers worth noting from the first six months of real estate sales in the Paia area.
- There were a total of five properties sold in the Spreckelsville neighborhood in the first half of 2012. That is up from three sold during the first half of 2011.
- There was one oceanfront sale during the first six months of 2012. By comparison, there were two during the first six of 2011.
- There were three bank owned sales (REO) and three successful short sales during the first half of 2012. During the first half of 2011, there were three shorts and three REO sales.
- The high and low sales for the first six months of 2012 were $2,520,000 and $150,000 respectively. The high and low for the first six of 2011 were $1,950,000 and $182,000.
- There were three sales in the popular Kuau Bayview neighborhood. There were two during the first six months of 2011.
With the small sample size of the Paia market, some of the differences between the two six month periods could be just as much a reflection of variability as they are any distinct market trends. Looking purely at the numbers, one might expect that values dropped considerably over the last year with 19% decrease in median prices. I would suggest that difference is based as much on variability between the properties sold as it is a reflection of any decrease in values. Prices may be down some when compared to early 2011, but the lack of true apples to apples comparable sales makes it hard to quantify the change accurately. Demand appears to be up slightly. This may be statistical noise, but there is also some anecdotal evidence to support this claim. Many of this year’s sales have gone under contract quickly and/or attracted multiple offers.
With less than six months to go, what can we expect for the rest of 2012? There are currently twenty-three homes for sale in the Paia area. Of the twenty-three listed, five of those properties are pending. Of note, all five pending are short sales. Two of the five short sales have been under contract for over a year. Among the eighteen active homes, seven are listed for over $2,500,000. That is a pretty good sized inventory of luxury homes for limited demand. Conversely, the inventory is tight under $2,500,000. The eleven properties listed for sale is less than six months supply based on absorption rates for the first part of the year. That doesn’t necessarily mean all of the current lower priced inventory will be snatched up over the next six months. Buyers are still looking for values in this market. While you may see a few reaches on quality properties, many buyers are waiting for the right property at the right price.
In addition to the homes listed for sale, there are four condos and two vacant lots for sale. The majority of the condos are at the Kuau Plaza building near Mama’s Fish House. There is one relatively rare offering at Sugar Cove in Spreckelsville. Both of the lots for sale are in Spreckelsville.
Contact The Maui Real Estate Team if you are in the market for Paia Real Estate. This is our backyard and we know the market very well. We would welcome the opportunity to discuss your Paia real estate needs.