This is the second installment of our look at how the real estate market performed in individual communities around Maui during 2012. Today, we are taking a glance at the Haiku Real Estate Market. Haiku is a rural community on the North Shore of Maui. The area draws residents and visitors for its tropical beauty, access to great wind and water sports and country charm. Real estate in the area ranges from residences on small lots to sprawling country estates. Many of the homes in the community are on larger agricultural lots of two or more acres. During 2012, the Haiku market continued to improve over the doldrums of the down market. Sales volumes increased by a healthy margin for home and land transactions. Here are the statistics I pulled together on the market followed by a few thoughts on their meaning and the outlook for the market in 2013.
There were 72 homes sold in Haiku in 2012 with a median sales price of $635,000. In 2011, the sales figures were 58 sales at a median price of $637,000. That calculates to a 24% increases in activity and less than half of a percent drop in median price.
There were 29 land sales in Haiku during 2012 with a median sales price of $387,500. This is a significant boost over the 2011 numbers of 10 sales at a median price of $450,000. This calculates to 290% increase in sales activity and a 14% drop in median price.
Here are a few other numbers that I dug up while researching Haiku Sales volumes and medians.
- There were seven bank owned sales in Haiku in 2012. There were 11 bank owned sales in 2011. That is a 36% reduction in bank owned sales.
- There were seven successful short sales in Haiku for 2012. In 2011, there were three short sales. That is 233% increase in short sale activity. That percentage increase is more a reflection of the small sample than a dramatic shift in the market.
- The high sale in Haiku last year was $1,900,000 for a luxury home with cottage and pool on 2.12 acres.
- The luxury market as a whole was a little quieter in Haiku than last year. There were seven homes sold over $1,000,000 in 2012 verses 9 sold over $1,000,000 in 2011. Three of those 2011 sales were priced over $2,000,000. There were of course no $2,000,000 sales this year.
Overall, this was a year where the Haiku market began to get its legs back after feeling the influence of the real estate downturn for the previous four years. The land market made strides in particular. Land sales have been languishing since 2007 on island and this was part of a broader upswing in the Maui land market.
Residential homes also saw an upswing in activity over what we experienced the year before. The one thing that is interesting to note is that the upswing was not universal. The graph below compares the distribution of home sales by price in Haiku during 2011 and 2012
As shown above, some segments saw big gains while other parts of the market performed below 2011 levels. Some of that may just be a case of variability. We are dealing with small enough samples that there is some danger of over-interpreting some of these annual differences. That being said, the decrease in activity at the high end of the market follows trends that we saw across the island. While we saw many parts of the market increase in activity, luxury home sales were down island wide during 2012. The decrease in activity at the low end may well be a function of decreasing inventory. There are fewer bank owned properties coming on the market at these lower price ranges and there is not a big pool of conventional priced properties below $300,000 in Haiku. This is again a mirror of market trends around the island. With limited inventory and substantial demand for lower priced properties, we are also seeing some price increases in the low to middle end of the market.
When you look at the changes in medians for homes and land, it would appear that prices may have decreased. That being said, changes in medians aren’t always based on changes in property values. Part of the change stems from a shift in the distribution of sales in the market. As you can see in the chart below, the drop in median price for Haiku may well stem from an increase in sales of lower priced lots. It is not necessarily due to any decrease in value.
Changes in the value of homes can be tough to quantify in communities like Haiku. The homes and lots in the area are tremendously diverse in size, location, quality of construction, orientation to the elements and view. I would suggest that we are starting to see some price increases on properties at or below the median price for homes and land. However, it is hard to provide solid data as evidence or to apply a percentage increase in values due to the unique nature of many of the properties that have been sold.
What will 2013 bring for the Haiku Real Estate market? That is tough to say. Inventory levels will play a major role in future market performance. There is still strong interest from buyers looking for properties, but inventory levels are very low, particularly below the median price. The chart below highlights the issue at hand. It compares the the price range of the current listings on the market that are active and compares them to sales in the last year. Pending sales are not included in the chart.
The chart points out the tremendous scarcity of inventory in the lower price ranges. As evidenced by the sales, this is an area with higher buyer demand. Conversely, the higher priced luxury market has a fairly deep pool of inventory. Looking at the sales numbers for 2012, this is an area that has seen limited sales activity. For buyers shopping in parts of the market where inventory is scarce and demand is high, they should expect a lot of competition on well priced properties. Multiple offers and sales prices over asking won’t be uncommon. The conditions are in place for price increases in this segment of the market. Haiku luxury buyers may find that the depth of inventory could provide some opportunity for comparative values. Sellers should carefully evaluate where there home fits in this complex market. Well priced, well cared for homes near or below the median sales price will be well received in the market. While inventory is needed, overpriced properties will still languish in this market. Sellers may also find that appraisal is challenging with financed buyers if the contract price is too far above recently closed comparable transactions. Luxury sellers who want to sell quickly may will need to position themselves well against the rest of the inventory to stand out.
We hope this report helps you better understand the conditions in the Haiku Real Estate market. If you would like a free analysis of the value of your home or land, tell us a little more about your property and we’ll happily provide this service. We would welcome the opportunity to discuss how we may service your real estate needs. If you are looking to buy property in Haiku or anywhere else on Maui and require thoughtful, professional representation and service contact the Maui Real Estate Team today.You can see all of the current Haiku Real Estate listings on MauiRealEstate.com.