Just a few days ago, we posted a year end review and 2015 outlook for the Spreckelsville Neighborhood. Today, I wanted to take a look at the town of Paia and how its real estate market performed in 2014. We also wanted to give some thoughts on what might be expected of this market during 2015. Spreckelsville is actually a part of Paia, but we split the two communities in our analysis because of the relatively unique characteristics of the respective markets. That means this post will focus exclusively on Paia and the Kuau area of Paia.
Paia has been one of the stronger real estate markets on the island since the downturn. Simple supply and demand plays a factor in the strength of Paia’s housing market. There has been no new housing created in the Paia area since the construction of North Shore Village in 2003. Since that time, Paia has seen demand grow considerably as more and more people have sought to relocate or buy second homes in this funky North Shore Beach town. Buyers are attracted to the bohemian vibe, good restaurants, yoga studios, cute boutiques, the island’s best health food store and some of the most consistent wind and waves on the planet for water sports. The demand for Paia Real Estate was particularly evident in 2013 when some neighborhoods in the area hit new record highs. Did Paia continue at those same levels in 2014? Find out below as we give you the numbers.
The map below shows all of the sales that occurred in Paia and Kuau area during 2013. Click on the individual pins on the maps to learn more details about the sales.
There were a few notable numbers from the 2014 Paia sales figures that I thought were worth sharing.
- There were 18 homes sold in Paia during 2014. That is down from the 20 homes sold in 2013. That is a 10% drop in activity.
- The median sales price for homes in Paia during 2014 was $634,750. The 2013 median was $678,500. That is a 6% drop in median price.
- There were three condo sales at Kuau Plaza in 2014. There were three condo sales at Kuau Plaza in 2013.
- Kuau Plaza appears to have seen very strong growth in values during the year. The only one bedroom that sold in 2013 closed for $200,000. All three sales in 2014 were one bedrooms and their median price was $279,000. That is a 40% increase in median price. In this case, the change in median is pretty closely correlated with the change in value.
- There was only one land sale in 2014 compared to four land sales in 2013. Vacant Land is in finite supply in Paia. If we are to see any more than one sale a year, it will likely come from the flip of recently sold lots.
- There were two short sales and one bank owned transaction in Paia during 2014. There was one bank owned sale and one short sale in 2013.
There are a couple of things that deserve comment regarding the Paia market in 2014. After a frenetic 2013 that saw big price increases and a strong market recovery, things appear to have leveled off a little in 2014. This was evident in slightly lower transaction volumes and to some extent the lower medians. It is even more evident when you look at a neighborhood like Kuau Bayview. That market was in a frenzy in 2013, but buyers were reticent to push prices in 2014. This is in line with what we predicted during our Paia 2014 Outlook. In some ways this is a relief, as it would have been unsustainable in the long term to continue at higher rates of appreciation.
The Paia luxury market was relatively quiet this year with only two sales over $2,000,000. More of the high end sales activity was occurring down the road in Spreckelsville during 2014 where there were five sales over $2,000,000.
It will be interesting to see what happens with the market in 2015 in Paia. The map below shows the current inventory and the sales that we have seen in the year to date. Green dots represent active listings. Yellow pins show properties that are currently under contract and red dots are sales that have closed this year. You can click on each of the pins for additional details.
It appears as if 2015 is off to a pretty solid start with three homes sold and an additional four properties under contract. There was one notable sale in Kuau Bayview with a new record high sales price established. I would expect that we will see similar dynamics to what we experienced last year with relatively modest price appreciation. If sales continue at their current pace, we should see more closes than we did in 2014.
It will be particularly interesting to watch the luxury and oceanfront home market in Paia. There are more oceanfront homes for sale in Paia than any other community on island. That gives potential buyers a lot of options. It is notable that there are no oceanfront homes for sale in Spreckelsville. Unless that changes, that might divert more potential high end buyers to the Paia and Kuau area.
The Maui Real Estate Team’s office is located in the heart of Paia. We know the community and its real estate inventory well. Contact The Maui Real Estate Team if you are interested in buying or selling property in the Paia area. We would welcome the opportunity to discuss your real estate needs and offer a free consultation. You can check find the current inventory of Paia Real Estate Listings on MauiRealEstate.com.