This is the third installment of our summer community real estate market updates. Today’s post focuses on the North Shore community of Haiku. It follows recent posts on Spreckelsville and Paia and Kuau. Haiku spans a large geographic area along the north side of Haleakala. It ranges in elevation from sea level to about 1,500 feet in elevation. Located on the windward side of the island, Haiku’s landscape is more lush due to more frequent trade showers.
The area was a focal point of agriculture pre-western contact. In the more recent historical period, it was an area of plantation agriculture with both pineapple and sugar cane serving as the primary crops. The agricultural legacy is evident in the zoning. The bulk of the properties in the area are zoned agricultural. Most agricultural lots include 2 or more acres. Acreage is one of the biggest appeals to this area of Maui. There is still smaller scale farming in the area. Many homeowners have orchards and/or gardens. Other draws to Haiku include the area’s natural beauty, access to nearby water sports and proximity to a variety of schools.
Notable Numbers from This Year’s Haiku Home Sales
- Maui Realtors reported 66 sales in Haiku for the year to date as of August 17th. That is a 27% increase over the same period of 2020.
- The median sales price of the homes sold is $1,177,500. The average sales price is $1,440,507. This is also up significantly over the same period of last year when the median and average were $870,000 and $1,104,884 respectively.
- The lowest priced property sale for the year to date closed for $600,000. This 977 square foot house and cottage on a 12,284 square foot lot sold prior to going on the MLS. I venture that it likely would have sold above this price if it went to market.
- The highest priced sale closed for $6,650,000. That property includes a 4,500 square foot home with a pool and a large barn on 38.91 acres.
- That sale is one of nine properties to close over $2,000,000 and one of four that closed over $3,000,000.
- There are currently 16 homes under contract in Haiku with 4 of those listed for more than $2,000,000.
Thoughts on the Haiku Market for the Year to Date
Like the rest of the island, the Haiku area is seeing strong demand and limited supply. This is reflected in both the higher than average sales activity, and the increase in prices. Sales volume for this period is higher than not just the same period of 2020, but also the same period of any of the last five years. Both median and average price increased significantly over 2020. The increase in average price reflects not just rising prices, but also additional activity in the higher price points of the Haiku market. This is part of a two year trend for higher priced sales in Haiku. There are 21 homes that closed for $2,000,000 or more in Haiku since January 1, 2020. That is 27% of the sales for $2,000,000 or more in the last 20 years!
The Outlook for Haiku Homes for the Rest of 2021
While buyer demand remains strong, inventory is incredibly limited in Haiku. As of this moment, there are only 17 active home listings. That’s a fraction of what we typically see in Haiku. Inventory is particularly scarce below $1,000,000 with only 4 active listings. By comparison, there are 7 listings over $2,000,000. While some markets on the continent are seeing inventory rebound, we aren’t seeing it in Haiku. Sales volume for the rest of the year will be hard pressed to keep pace with the first seven plus months of 2021 unless more listings come to market. It will also likely mean continued upward pricing pressure.
The Haiku Land Market
Haiku sees more land sales than most parts of the island. It typically has more land inventory available. Haiku Town Acres and Kauhikoa Farms are two newer subdivisions created in the last five years that drove recent activity. The rest of the inventory consists of resales from older subdivisions or lots created from smaller scale subdivisions. CPR lots are increasingly common.
Notable numbers from the Haiku Land Sales in 2021
- Maui Realtors reported 29 lots sold for the year as of August 17th. The median price of the lots sold is $585,000. The average price of the lots sold is $813,190.
- The highest price lot closed for $2,499,000. It is a 20.5 acre oceanfront lot located to the East of the Peahi surf break.
- The 20.5 acre oceanfront parcel was the only sale over $2,000,000, but it was one of eight sales for $1,000,000 or more.
- The eight sales equals the total for all of 2020. The last two years are now tied for the busiest year ever for $1,000,000 or more land sales in Haiku.
Haiku Land Sale Overview and Outlook
Strong demand helped push pricing up in the Haiku land market in 2021. As the overall real estate market on Maui hit another gear in the first quarter of 2021, buyers quickly snatched up much of the remaining land inventory in Haiku. I remember clearly in January and February when a number of the properties that sat on the market in the fall went under contract in close succession. Replacement inventory has yet to come to market. As it stands, there are only 9 active land listings in Haiku. The lowest priced listing is currently $1,300,00! When lower priced lots come on the market, it feels more like an auction than a conventional real estate listing.
Barring a substantive increase in inventory, I would surmise that we will see really limited sales volume and continued price appreciation. That said, land pricing does not operate in a vacuum. Construction costs are high due to increased material and labor costs. If the cost to build plus the cost of land far exceeds the price of existing homes, buyers won’t support the higher land prices. Land buyers should evaluate potential construction costs and create an overall budget prior to hopping into a frothy land market.
Contact The Maui Real Estate Team
The Maui Real Estate Team keeps close tabs on the Haiku market. A number of our office’s agent call the community home. Contact The Maui Real Estate Team if you are looking for property in Haiku. We would welcome the chance to learn more about your real estate interests and needs. You can view active Haiku home listings and Haiku land listings on MauiRealEstate.com.
