In the second installment of our mid-year Maui market updates, we decided to take a look at the North Shore community of Haiku. Haiku is a rural community situated to the East of Paia. It is a geographically expansive area in the windward area of Maui. The community is favored for its natural tropical beauty, property with acreage, peace and quiet, proximity to wind and wave sports and accessibility to Central Maui. Here are the real estate sales numbers for the first half of 2012 and the first half of 2011 for context. The numbers are followed by a few thoughts on the Haiku real estate market and it’s prospects for the second half of 2012.
There were 33 homes sold in Haiku during the first six months of 2012 at a median price of $620,000. By comparison, there were 22 homes sold in the first half of 2011 at a median price of $673,000. That calculates to a 50% increase in sales volume and an 8% decrease in median price. There were 12 Haiku Land Sales for the first half of 2012 with a median price of $393,750. There were 5 land sales during the first half of 2011 at a median price of $300,000. That is a 140% increase in sales volume and a 31% increase in median prices.
Here are a few other numbers worth noting from the first six month of Haiku Real Estate sales:
- The high sale in the first of 2012 for Haiku was $1,900,000. This property is a 3,800 square foot, ocean view, luxury home on just over two acres. It has a pool and a detached ohana. During the same period last year, Haiku’s top sale was $1,150,000. This home is a 1,700 square foot high quality finish home home with detached cottage on almost three and a half acres.
- The low sale for the first half of 2012 was $256,000. This property is a modest off the grid cottage on around a third of an acre. The low for the first half of 2011 was $236,000. That home is a small Bali kit house on just under a tenth of an acre.
- There were five homes sold over $1,000,000 during the first half of 2012. There were also five homes sold over $1,000,000 during the first six months of 2011.
- Three of the properties that closed in the first half of 2012 were bank owned properties. There were also three successful short sale transactions. By comparison, there were two short sales during the first half of 2012 and no REO closes.
- The high sale for land in the first half of 2012 was $854,000 for 14 acres at the edge of the rainforest in upper Haiku. The high sale for the first half of 2011 was $900,000 for 38.49 acres with preliminary approval for a six lot subdivision.
Compared to last year, there has been a distinct uptick in activity in the Haiku Real Estate market. Sales volumes have increased significantly with a 50% increase in volume for homes and a 140% increase for land. Values are a little more muddled. While the median for homes was down 8%, it can be argued that the composition of sales is driving medians just as much as changes in values. The same can be said for land values where the 31% increase in medians is by no means a true reflection of changes in property values. Our feeling is that home values may be down a little in the Haiku market, but we are close to some sort of bottom. Whether that bottom is definitive or not depends in part on the overall global economic picture. Land prices are mixed. There haven’t been as many bottom dollar land sales opportunities that we saw a year or two ago, but the overall trajectory seems lower.
The big question is what can we expect for the rest of 2012? There are 49 active homes for sale in Haiku with 27 homes pending. Of the active homes, 25 homes are listed over $1,000,000. That is over half the inventory. That includes 13 homes over $2,000,000 and 7 homes over $3,000,000. If you are looking at the high end of the market, there appears to be a fair amount of inventory and a smaller pool of potential buyers. Keep in mind that there were only five home sales above $1,000,000 and none above $2,000,000 in the first six months of the year.
The lower the price range, the more scarce the inventory becomes within the Haiku Real Estate market. There are only six homes active under the median sales price of $673,000. That limited inventory may well constrain sales volumes. It may or may not have an impact on values. Scarcity will often drive prices up. It remains to be seen if that will happen with lower priced Haiku homes. We have seen some signs that buyers are opting to remain patient vs. stretching or reaching on prices. Buyers are holding out for quality and value. It will be interesting to see if we see any bumps in inventory. It has been surmised that we may see an increase in bank owned inventory at some point this summer. We haven’t seen any clear signs of that yet.
On the land front, there are 41 active lots for sale and 4 lots pending in Haiku. Twelve of the 41 active lots are priced over $1,000,000. It appears as if there is healthy inventory to choose from in all segments of the Haiku land market. However, it could be argued that there is a lack of premium view lots that are well located and market priced. I can’t see the threat of price increases in the Haiku land market at any point in the near future.
Contact The Maui Real Estate Team with questions or for assistance with Haiku properties. Want to see what homes are available in Haiku now? You can check out the current listing inventory of Haiku Real Estate here.