February is smack dab in the middle of our whale season and our visitor season on Maui. Lots of visitors on island also typically means a fair amount of real estate activity. This is our look at how the Maui Real Estate Market performed in February of 2015. Included among the numbers below are sales volumes by property types, median sales prices, notable sales and pending sales. We also give a few thoughts on the stats and what it all means for buyers and sellers. Without further ado, here are the numbers.
February Maui Real Estate Sales Volumes and Medians
By my count, there were 59 homes sold on Maui in February with a median price of $567,250. That is the same exact number of homes sold as last February. The February 2014 median was $550,000. That is a 3% increase in median prices comparing this February to the same month last year.
There were 92 condos sold last month with a median price of $477,500. In February of 2014, there were 88 condos sold at a median price of $345,000. That is just under a 5% increase in sales activity and a 38% increase in median price.
There were 14 lots sold in Maui County during February with a median sales price $490,000. Last February, the total was 12 lots sold at a median price of $447,500. That is roughly a 17% increase in activity and a 9% increase in median price.
Notable Numbers from the February Maui Real Estate Sales
While compiling the sales volumes and median prices, I came across some other notable numbers from the February Maui Real Estate activity that I believe are worth sharing.
- The highest priced home to sell in Maui last month was located in the Ka’anapali Coffee Farms subdivision. The four bedroom, four bath home has 3,599 square feet of living space and a pool on 5.58 acres.
- That was one of three home sales over $2,000,000 that closed in February. The other two homes that closed were also located in Ka’anapali with one home closing in the Summit and another in Ka’anapali Golf Estates.
- The highest priced condo sale last month was a 3 bed, 3.5 bath condo at the Montage Residences on Kapalua Bay.
- That was one of ten condos sold for more than $1,500,000 last month. The other big sales included 3 closes at Honua Kai, 2 at Wailea Elua and one each at Makena Surf, Andaz and The Terraces at Manele Bay on Lanai.
- The highest priced land sale last month was $1,430,000 for a homesite in Makena Papa’anui.
- There were 13 bank owned transactions that closed last month in Maui County. There were 8 banked owned sales last February.
- There were 3 short sales that closed last month compared to the 8 short sales that closed in February of 2014.
Quick Thoughts on the February Stats
While February wasn’t the busiest month for closed sales, it was positive to see that homes, condos and land sales volumes outperformed the February 2014 numbers. This hasn’t occurred all that often over the last 6-10 months with condo and land sales typically lagging behind the same month of the year prior. While the increase in one month of sales activity is generally a good thing, I am not sure it is a sign of any substantial shift in the market.
The Maui luxury property market saw another strong month of condo sales in February. Buyers have a good selection of inventory to choose from with a variety of high end resales on the market and new developer units still available at places like Montage Kapalua, The Residences at Andaz and Honua Kai. The luxury home market has seen a slower start to 2015 with sales over $2,000,000 down compared to the same period of 2014. There is also a good inventory for buyers searching in this price range so you can’t chalk up the reduction of activity to limited supply. It will be interesting to see if sales activity picks up for luxury homes during the rest of the year.
Sales activity for bank owned properties was stronger than February of last year, but the impact of bank owned properties on the market remains limited. Rather than dragging down prices with below market sales prices, most banks are pricing properties high with the hope of achieving maximum value for their assets. This means many banks are having to make one or more price reduction before they actually find the market. Buyers searching for bank owned bargains may be disappointed with the selection of properties available.
February Pending Sales
While the February sales provided good news, the February pending sales were a mixed bag. There were 20 more homes on island that went pending this February compared to last February. Pending land sales were exactly the same as last February. The condo market was a lot quieter with 28 fewer condos going under contract compared to February 2014. The lower condo sales activity in February is more typical of what we have seen since the middle of 2014. Limited inventory has been a factor in the lower sales volumes. I surmise we may also be seeing some impact from a weakened Canadian dollar. I was showing condos in South Kihei last week and was struck by both the depth of inventory and lack of activity at some complexes that are traditionally popular with Canadian buyers.
What Does it All Mean for Buyers and Sellers?
Buyers and sellers will find that market conditions have changed little over the better part of 18 months. At a broad level, the Maui Real Estate market is continuing to experience modest price appreciation with limited inventory at and below the median price points of the market. As you hone in on the different communities and neighborhoods, you will find a little more variability in conditions. Depth of inventory and buyer demand may vary. Buyers will find that well priced properties regardless of location or price point can go very quickly and may attract multiple offers. Buyers should be pre-approved if they require financing on their purchase so they can put their best foot forward with sellers. Sellers need to look closely at recent sales activity when determining go to market pricing for their property. Over priced properties are sitting even if that part of the market may have more limited inventory. Contact The Maui Real Estate Team with questions or if you are interested in buying or selling Maui Property. We would welcome the opportunity to sit down with you for a free consultation.