Maui Real Estate Blog

September 2022 Ka’anapali Market Update

Post Updated September 29, 2022

It’s time for an excursion to West Maui as we continue our series of posts on market conditions in different communities around the island. The focus of today’s post is Ka’anapali. This resort community experienced a boom in activity during 2021 with rising prices and a high volume of sales. How has the market been in 2022? Find out more below as we look at year to date numbers for 2022 with numbers from 2021 and 2019 provided for comparison. There are also a few thoughts on the outlook for the rest of the year and early 2023.

Ka’anapali Home Market Numbers

  • Maui Realtors reported 20 homes sold for the year to date as of September 23. That is 59.2% less than the 49 sales reported over the same period of 2021. It is 11.11% higher than the 18 reported in 2019.
  • The median price of homes sold in 2022 is $2,650,000. That is 11% higher than $2,387,000, last year’s median over the same period. It is 77.91% higher than $1,489,500, the median during the same period of 2019.
  • The average price of the homes sold in Ka’anapali during 2022 is $2,855,552. That compares to an average of $3,017,891 and $1,994,037 during the same periods of 2021 and 2019 respectively. This year’s average is 5.38% lower than last year and 43.2% higher than 2019.
  • 20% of this year’s buyers paid over asking price for their home and 45% paid asking price or above. In 2021, 12.24% of buyers paid over asking price and 28.57% paid asking price or above. In 2019, no buyers paid over asking price and 11.11% paid full price.
  • Realtors reported 30% of sales were cash transactions.
  • The highest priced transaction this year closed for $5,295,000. The property in the Lanikeha subdivision included a 3 bedroom, 3.5 bathroom home with 3,086 square feet of living space and a 1 bedroom, 1 bathroom, 508 square foot cottage on a .485 acre lot.
  • The lowest priced sale for the year to date closed for $1,681,050. The bank owned property in Ka’anapali Hillside actually sold via online auction for 46.17% over asking price. The home needed serious repair and renovation.
  • The Ka’anapali Hillside subdivision had the most sales activity with 6 closes. Lanikeha and the Summit were the next busiest with 5 transactions each.

Thoughts on the Home Numbers and the Outlook for the Rest of the Year and Early 2023

After a rip roaring 2021 for sales, transaction activity decreased sharply this year in Ka’anapali coming in just above the pre-pandemic levels of activity during 2019. That said, decreased volume is just one part of the story. There was enough demand that 45% of all home sales closed for asking price or above. That’s even more than last year. When compared to 2019 numbers, that 45% is particularly striking. Back before the boom of the last couple years, above asking price offers were exceptionally rare and just over 10% of the buyers paid full price.

Some of the decreased sales volume can be attributed to a scarcity of listings at lower price points and within a couple of higher priced Ka’anapali neighborhoods. There were no transactions or even inventory in the Pinnacle this year, and just two listing and no transactions in Ka’anapali Coffee Farms. At this time, there is no active inventory for less than $3,000,000, with the only 2 listings below that price under contract.

Inventory isn’t as big of an issue as you move up in price range in Ka’anapali. Fifty percent of all the active inventory is priced between $5,000,000 and $7,000,000. Thus far one home sold in that price range with one additional home listed above $5,000,000 under contract.

It is worth comparing the homes that sold for between $5,000,000 and $7,000,000 last year with the current inventory in this price range. Last year’s sales included two large homes on acreage in Ka’anapali Coffee Farms and a 6,575 square foot home in the Pinnacle. While size isn’t everything when it comes to value, this year’s $5,000,000 and up listings tend to be smaller homes on smaller lots than last year’s sales. The active inventory includes four homes in Lanikeha with the largest home coming in at 4,557 square feet and a home in Kaanapali Coffee Farms substantially smaller than both of last year’s highest priced sales in that neighborhood.

It is also worth noting that all of the active listings in this range appear to be spec builds. There are two more spec builds in Lanikeha priced between $4,000,000 and $5,000,000. This volume of spec building is almost unheard of in the Maui Luxury home market. It will be interesting to watch the sellers of these spec builds through the rest of the year, especially if we see additional shifts in the market and or the economy. I surmise that it may take some pencil sharpening for some of those properties to go under contract.

As for overall Ka’anapali luxury home market activity in late 22 early 23, inventory constraints at lower price points will impact sales volume. Any additional sales beyond the current pendings will mostly come via new inventory or price adjustments. Rising borrower costs may also curtail activity. While there is a fair amount of cash in the market, rate increases will impact affordability for some buyers. Negative economic news and declines in the equity markets could also cause some buyers to put second home purchases on hold.

Aerial view of the Ka'anapali Coastline
The Ka’anapali Coastline

Ka’anapali Condo Market Numbers

  • As of September 23rd, Maui Realtors reported 123 condos sold in Ka’anapali for the year to date. That is 37% fewer than the 194 that closed over the same period of 2021. It is 14.95% more than the 107 that sold during the same period of 2019.
  • The Median price of the condos sold for the year to date is $1,450,000. This is 52.63% higher than the median of $950,000 from last year over this same span. It is 63.66% higher than the median for the same period of 2019.
  • The average price of the condos sold for the year to date is $1,724,465. That is a 31.67% increase over last year’s average through September 23rd. It is 54.15% above the 2019 average during the same time span.
  • 23.58% of all of the condos sold thus far this year sold for over asking price, and 47.15% sold for asking price or above. That’s well above last year’s numbers of 8.76% over asking and 44.33% for asking price or above. Just to give some context as to what is was like pre-Covid, in 2019 only 2.8% of sales sold for over asking and 16.82% sold for asking price or above.
  • Maui Realtors reported that 51.21% of all sales were cash transactions. That’s up a little over the 50% reported last year. Cash purchases were actually higher at 59.81% in 2019.
  • The lowest priced condo to sell in Ka’anapali is a leasehold studio unit in Ka’anapali Shores that closed for $325,000.
  • The highest priced condo to sell closed for $5,899,000. The 3 bedroom, 3 bath unit in the Konea Tower at Honua Kai has 2,280 square feet of living space.
  • Honua Kai is the busiest condo development thus far this year with 37 closed transactions. Ka’anapali Shoes is second busiest with 20 sales for the year to date. The Masters had the third most inventory with 15 sales.

Ka’anapali Year to Date Review and Late 2022 Early 2023 Market Outlook

While the Ka’anapali Condo market for the year to date did not see a repeat a the astounding sales volume of 2021, it remained a busy market well above the levels seen in 2019. If anything, constrained inventory and continued demand made for a more competitive market than last year with more properties closing for over asking price. The market conditions meant continued upward pressure on prices.

As it stands, the vacation rental and second home condo market continues to be resilient as some other types of property on island start to feel a market shift. As of the 26th of September, there are only 17 active condo listings on the market in all of Ka’anapali. Limited inventory improves the position of sellers and continues to exert at least some upward pressure on pricing. It will be interesting to see how the limited supply balances out against demand. Again, the cash in this market makes it a little less interest rate sensitive, but there is still some impact. As of right now, a 30 year fixed on a vacation rental condo is being quoted as high as 8.5%. Needless to say, a lot of borrowers are opting for ARM products. Even those are a lot more expensive.

Ka'anapali Monthly New Condo Pending Sales
Monthly new condo pending sales in Ka’anapali from 2018-2022

The chart above shows pending condo sales by month in Ka’anapali over the last five years. A few things worth noting when looking at the chart. The first things is that 2021 and 2020 are anomalies with 2019 and 2018 more normal markets. If you are wondering about the April 2018 spike in pending sales, the market got a boost from a new development, Honua Kai Luana Gardens Villas. It’s also worth noting that while 2022 pending sales started stronger than 2019 and 2018, monthly pendings for 2022 are running behind both 2019 and 2018 since May. The last thing is that while there is a little more activity in the first half of most years, the second half of the year sees steady activity. I would suspect that we will see “below normal” market activity through the rest of the year.

Based on inventory and seasonality, I would anticipate relatively limited sales volume to close out the year. With the amount of inventory available, the economy in flux and borrowing costs the highest since 2002, it looks like a quieter start to 2023 could be in order. We shall see what happens going forward.

Contact The Maui Real Estate Team

Contact The Maui Real Estate Team if you have questions about this post or if you need assistance buying or selling property in the Ka’anapali area. You can find all of the current active Ka’anapali Homes for Sale, Ka’anapali Condos for Sale and Ka’anapali Land for Sale on MauiRealEstate.com.

Pete Jalbert

Maui Real Estate Blog

The Outdoor Spaces of the Oasis Spreckelsville

Year round outdoor living. It is one of the things near the top of the list for advantages to living in Hawaii. Warm weather and cooling trade winds beckon you to spend time outside. I know this isn’t exactly a revelation, but it seems that so many architects and builders fail to maximize outdoor spaces. That’s one of the things that makes the Oasis Spreckelsville such a well conceived home. The owner thought out every square inch of exterior living space and landscaping. The end result is beautiful, functional and surprisingly easy to maintain.

The Pools

It’s hard not to start any conversation of the Oasis outdoor spaces without first talking about the pools. There is a 12′ X 31′ main pool, a 5′ X 64′ lap pool and a 6’x 12′ heated spa. All of the pools are zero edge. Surrounding decking conceals storage reservoirs and drainage for the pools. Rather than using marcite or gunite, the owners used 36″ x 18″ tile to surface the pools. In addition to the pools, there is another zen fresh water feature with fountains adjacent to the lap pool.

The Zero Edge Main Pool at the Oasis
The Zero Edge Main Pool at the Oasis
The lap pool
The lap pool at the Oasis
The heated spa
The heated spa

The Lanai Spaces

Outdoor living spaces make homes live much larger than their interior square footage. This property has tons of outdoor living space. The covered lanai that overlooks the main pool is one of our favorite spaces on the property. Whenever we are at the property between showings, we find ourselves gravitating towards this beautiful space. The decking material itself is incredibly durable Ipe. The vaulted overhead ceilings include recessed lighting along the edge. A Boffi fan helps to augment the cooling tradewinds. The Richard Schultz furniture included with the sale is incredibly comfortable.

The front covered lanai at the Oasis overlooking the main pool.

The ipe decking expands beyond the front lanai area. There is decking that wraps around three sides of the house creating even more outdoor living space. There is a large area off the living room and kitchen that abuts against the outdoor water feature. It faces East and catches nice light in the morning to enjoy tea, coffee or maybe even some yoga to start the day. The lanai space appears equally suited to both quiet contemplation or capable of hosting a larger gathering of friends or family.

The side lanai area off the living room and kitchen.

The Outdoor Barbecue Area

With all of the outdoor space to enjoy, you have to have a good place to cook and prepare meals outside. The barbecue area overlooks the main pool. There is a sink and plentiful counter space for food prep or serving. Two 125 gallon propane tanks ensure that you never run out of gas during the middle of a barbecue.

A sink and food prep area by the barbecue overlooks the main pool.
Looking over the barbecue area towards the heated spa

The Landscaping

The owner studied botany. It shows. The plants throughout the property were carefully curated just likes the home’s building materials, fixtures and furnishings. The result is a beautiful and lush environment. One of the things that is most notable about the landscaping though is that it is relatively low maintenance. There is hardly any grass to mow due to the extensive lanai areas, blue stone pathways and the use of river rock and cinder around the landscaping. A number of the palms used are self shedding varieties that don’t require trimming.

The graceful swoop of the palm that grows between the barbecue area and the kitchen is eye catching. While the landscaping of the home is carefully curated, this palm wasn’t trained to grow this way. That was just how it grew. Can’t argue with the results.
Fan palms, bottle palms and beautiful ferns help frame the front lanai.

The Oasis Outdoor Spaces at Night

The Oasis truly become magical when the sun starts to go down. Outdoor lighting fixtures by Flos, Bocci and others help to take the outdoor space to a whole other level.

The Outdoor Spaces of the Oasis become truly magical at night
The Oasis takes it up to another level when the sun goes down
The lap pool at night
The lap pool at night

Other Outdoor Features

Some of the most notable additional outdoor features include:

  • Tasteful fencing for full privacy
  • Balinese entry gate and accent panels
  • Five panel art display over the lap pool by Abigail Romanchak
  • Three outdoor showers. One is perfectly located off an entry gate for a post beach rinse. The other two side by side Boffi Showers are located on a stretch of lanai between the two pools.
Side by side Boffi showers off the lanai
  • Hot and cold water hose bib by the garage with numerous other hose bibs around the house
  • Outdoor Bose Speaker system (wired) to a series of Sonos Amps
  • Rainbird sprinkler system

Contact The Maui Real Estate Team

The asking price for the Oasis is $9,800,000. Check out the Oasis listing page for more photos and details. Qualified buyers may contact the Maui Real Estate Team for more information or to arrange a private viewing.

Pete Jalbert

Maui Real Estate Blog

Kapalua September 2022 Market Update

By some margin, 2021 was the busiest year ever for transaction volume at the Kapalua Resort. Now that we are two-thirds of the way through 2022, we thought it might be a good time to check on market activity in this resort community located on Maui’s northwest coastline. This update looks at sales volume, pricing and more. It also looks at the outlook for the rest of the year and a slightly more long range outlook as the market slowly transitions back to “normal”.

Kapalua Home Market Numbers

The numbers below represent notable numbers for year to date home sales activity in Kapalua through September 5th, 2022.

  • Maui Realtors reported 12 home sales over the last eight plus months. That is 50% of the 24 sales reported during the same period of 2021, and 25% below the 16 sales during the same period of 2019.
  • Limited inventory played a pretty big role in the decreased sales volume compared to last year. While reduced demand may also be a factor, that is harder to show via the statistics.
  • Two out of the twelve sales closed for over asking price. An additional four sales closed for full price meaning 50% of the transactions closed for asking price or higher. It is striking that only one of the 24 homes sold in the first eight months of 2021 sold for over asking price and only 3 more sales closed for asking price or above. Back in 2019, none of the year to date sales sold for full price let alone asking price.
  • Of the twelve transactions, Realtors reported that seven of the buyers paid cash.
  • The median price of the homes sold in Kapalua this year is $5,025,000. That is 25.31% higher than median of $4,010,000 for homes sold during the same period of 2021. It is 105% higher than the median sales price of $2,450,000 during the same period of 2019.
  • The average price of the homes sold in Kapalua this year is $5,300,000. That compares to $4,886,354 and $2,364,000 during the same periods of 2021 and 2019 respectively. That means this year’s average is 8.47% and 124.2% higher than 2021 and 2019 respectively.
  • The lowest priced home to sell for the year to date in Kapalua closed for $2,750,000. The 3 bedroom, 3.5 bathroom home in Pineapple Hill with 3,670 square feet of living space is located on a 10,703 square foot lot.
  • The highest price sale for the year to date closed in August. The Pineapple Hill home has 6 bedrooms, 6.5 bathrooms and 7,784 square feet of living space on just under a half acre of land.
Home sales by subdivision in Kapalua over the last five years for the period between January 1 and September 5th.
Home sales by subdivision in the Kapalua Resort. This chart shows sales during the period between January 1st and September 5th over the last five years.
  • Pineapple Hill tops the list for busiest subdivision for sales activity this year. Five homes closed in Pineapple Hill with two additional homes closing in Pineapple Hill Estates. Three homes closed in Plantation Estates and two homes closed in Mahana Estates. There’s been no inventory and no sales in Kapalua Place. There is one pending sale in Honolua Ridge.

Kapalua Condo Market Numbers

The numbers below are the most notable from Kapalua Condo sales through September 5th. It includes only condos in the complexes that are formerly located within the Kapalua resort and does not include condo developments that border Kapalua.

  • Maui Realtors reported 51 condos sold for the year to date. That is 51.89% below the 106 sales reported through the same period of 2021. It is 15.9% more than the 44 closes during the same period of 2019.
  • Again, it is pretty clear that constrained inventory played a role in the substantial decrease in sales compared to last year. It’s difficult to estimate the role decreased demand played in the lower number of sales. That said, it is worth pointing out that we had more sales this year with far less inventory than we did in 2019.
  • Of the 51 sales, 12 or 23.53% sold for over asking price and 28 or 54.9% sold for asking price or above. By comparison, 3.77% and 30.19% of all 2021 sales over the same period sold for over asking price and at or above asking price respectively. Over the same period of 2019, 4.55% of all condos sold over asking with 34.09% selling for asking price or above.
  • Of the 51 condos that sold thus far this year, Realtors reported that 24 out of 51 or 47.05% were cash transactions.
  • The median price of the condos sold for the year to date is $1,450,000. Over the same period last year, the median was $1,145,000. That’s a 26.64% difference. The median during the same period of 2019 was $917,500. That is a 58% difference.
  • The average price of condos sold in Kapalua through September 5th is $2,438,421. During the same period of 2021, the average price was 29.07% lower at $1,889,224. The difference in average between 2022 and the same period of 2019 is 15.50%. During that period, the average was $2,111,034.
  • The lowest priced condo sale thus far this year in Kapalua closed for $940,000. That price bought the new owner a 1 bedroom, 2 bath with 972 square feet of living space in Kapalua Golf Villas.
  • That was one of just three condo sales below $1,000,000!
  • Kapalua’s highest condo sale for the year to date closed for $8,000,000 at Montage Kapalua Bay. That unit includes 3 bedrooms, 3.5 bathrooms and 2,904 square feet of living space.
Kapalua Condo Sales by Condo Complex. This chart shows sales between January 1st and September 5th between 2018 and 2022.
Condo Sales by condo complex in Kapalua. This chart shows sales between January 1 and September 5th between 2018 and 2022.
  • Kapalua Golf Villas was the busiest condo complex for transactions with 17 total sales. Montage and Kapalua Bay Villas came next with 9 sales each.

Outlook for the Rest of The Year in Kapalua

It’s time to get out the old crystal ball to see what we might expect in terms of sales activity in Kapalua for the rest of the year. Ok, ok maybe we will skip the crystal ball and try to use some other metrics that might give us some sense of market activity. When trying to gauge current market conditions, I like to look at demand for new listings and inventory.

Last month, five new condo listings came to market and one home came to market. Of the five condo listings, two were under contract in less than 10 days. That would appear to suggest that there is still some demand in the condo market. While overall demand on island might be feeling a crunch from interest rates, Kapalua is less likely to be rate sensitive. Keep in mind that just under 60% of this year’s home sales and just under 50% of this year’s condo sales in Kapalua were cash transactions.

The current inventory of listings remains limited. There are only 11 active condo listings in Kapalua and 4 pending sales as of September 5th. When you break it down by condo complex. There are no active listings in the Ironwoods or Coconut Grove. Both Kapalua Ridge and Kapalua Golf Villas have one active listing each and the Bay Villas has two listings. Only the Ritz Carlton Residences with three listings and Montage with four listings have any significant depth of inventory. On the home front, there are just five active home listings with one pending home sale.

One last factor to consider is seasonality. The charts below shows Kapalua home and condo pending sales by month in 2022, 2021, 2019 and 2018. In all of those years, the last four months of the year tend to see fewer properties going under contract.

New Pending chome sales by month in Kapalua between 2018 and 2022
New Pending home sales by month in Kapalua between 2018 and 2022. 2020 is omitted from the post due to the anomalies from the onset of the Covid-19 Pandemic.
New pending Condo sales by month in Kapalua between 2018 and 2022
New Pending Condo Sales by Month in Kapalua between 2018 and 2022. 2020 is excluded due to the anomalous data.

Based on the inventory, demand and past seasonality, I would expect that sales activity for the rest of the year will be quieter than the first eight months. That said, I would venture there should be some demand for the limited inventory particularly in the the lower price points of the condo market.

Longer Term Kapalua Outlook

I mentioned at the start of the Kapalua discussion, that Kapalua was one of the markets that saw the greatest increases in demand over the last couple of years. That comes after a decade where Kapalua saw lesser demand than other resort markets. While Kapalua has always had its share of loyal fans, it tended to be a slower market. Days on market were longer and sales volume was lower. That started to shift a little at the end of the decade and it changed completely with Covid. As the market slowly moves toward normal, what does “normal” actually look like?

Maui Prep helped fuel part of Kapalua’s Covid period boom. The school was able to scale up enrollment to accommodate a large number of affluent families who took advantage of the work from anywhere movement. Many of those families ended up buying homes in Kapalua or other nearby areas of West Maui. The question of how much ongoing demand there will be from affluent remote workers remains something of an unknown.

I recently had the opportunity to pose the question about the future of the Kapalua market to an agent who lives and works in the community. I thought her answer offered some interesting insights. While Maui Prep came up, she also discussed the role of the Montage and the Ritz. She pointed out that the closure of the Kapalua Bay Hotel in 2006 and construction projects at the Ritz limited places to stay and the overall appeal of the area during the latter half of the 2000s. The foreclosure on the Ritz Carlton Club in 2013 didn’t help. When the Ritz Carlton Club redeveloped and rebranded as the Montage in 2014, it brought in new vacationers. Many of them developed loyalty to Kapalua and eventually became second home owners.

With those two anchor properties, the other agent thought this would provide a solid foundation for future demand in the community. For this and other reasons, she is very much a Kapalua Bull over the long term. It was an interesting answer and one I thought might be worth sharing with our readers.

Contact The Maui Real Estate Team

We will continue to provide periodic updates on the Kapalua market on this blog. If you are interested in Kapalua Properties, you can find the current inventory of Kapalua Homes for Sale and Kapalua Condos for Sale on MauiRealEstate.com. Contact The Maui Real Estate Team if you have questions on any of the listings or need assistance buying or selling a property in Kapalua.

Pete Jalbert

Maui Real Estate Blog

Maui Real Estate Market Musings Volume XVIII

Maui Market Musings Volume XVIII tackles the notable numbers from August 2022 Real Estate Sales on Maui. It even delves into a nuanced discussion of the (spoiler alert) decrease in median home prices on island and what it may mean. This edition originally included a discussion of Kapalua 2022 market activity, but I am not sure anyone would make it through the two subjects together without consuming dangerous levels of caffeine. Look for that post early next week. Without further ado…

Notable Numbers from the August Home Sales

With Labor Day passed, It’s a good time to took a look through the August Home Sale numbers. The numbers below are the most noteworthy with August 2021 and August 2019 data points provided for comparison. The numbers are different from the Realtor’s Association of Maui numbers because they exclude the islands of Molokai and Lani.

  • Maui Realtors reported 82 homes sold in August of 2022. That is 32% lower than the 120 homes sold in August of 2021. It is 15.5% lower than the 97 homes sold in August of 2019.
  • Of the 82 homes that sold, 14 or 17.07% sold for over asking price and 37 or 45.12% sold for asking price or higher. That is well below what we saw during August of 2021 when 40.83% sold for over asking price and 61.67% sold for asking price or higher. It’s still well above what the market was like in August of 2019. At that time, 11.34% of sales closed for over asking and 28.87% sold for asking price or above.
  • Of the 82 homes sold, 21 or 25.6% of buyers reportedly paid cash.
  • The median price of the homes sold in August is $1,037,500. That is down 2.4% from the August 2021 median of $1,062,500. The August 2022 median is 27.6% higher than the median price in August 2019.
  • The average price of homes sold in August 2022 is $1,537,666. That is 10.9% lower than last August’s average sales price of $1,725,993. The August 22 average is 23.67% higher than the August 2019 average of $1,243,316.
  • The lowest priced home to sell in August closed for $230,000. That is also the lowest sale on the island of Maui all year. The off market sale involved a 2 bedroom, 1 bathroom home with 1,012 square feet of living space on a 7,658 square foot lot. There were no photos or details on the condition of the home.
  • The highest priced transaction in August closed for $7,900,000. The home in the Pineapple Hill subdivision of Kapalua has 6 bedrooms, 6.5 bathrooms and 7,784 square feet of living space.
  • The home in Pineapple Hill was one of three sales over $5,000,000 and one of fourteen that closed for over $2,000,000.

Let’s Talk About Median Prices and Home Values

I would imagine the fact that this August’s median is lower than last August’s median raised a few eyebrows. Does mean that we may be seeing values decrease? I think this merits some discussion.

If you are a long term reader of this blog, you will know that I am wary of tying shifts in median price to shifts in home values. The composition of sales can be a big driver of month to month shifts in median prices. A lot of lower priced homes selling in a month could drive down median prices while more high end sales may drive up median prices. Maui’s not the easiest real estate market for tracking changes in price. The volume of sales is relatively low and the inventory is heterogeneous. Even some of our more cookie cutter subdivisions have variability in views and location that can impact value.

I like quantitative evidence a lot more than anecdotal evidence. At this point, I can’t point to any clear numbers that support price drops. That said, a case can be made that some homes on Maui that sold during the first five to six months of this year would sell for less now. Competition remained fierce in the first quarter and bidding wars were common. Borrowing costs were still a lot lower than they are now. Investors were still active. FOMO or fear of missing out on low borrowing costs and limited inventory meant buyers bid aggressively pushing up prices.

Fast forward to this summer and the dynamic changed. The pool of buyers is significantly smaller due to higher borrowing costs and an absence of investors. We are definitely past the FOMO phase of the market. With a lot less buyer demand, we are starting to see some properties struggling to sell. While I know this is speculative, I surmise that some of these properties that are sitting would have attracted multiple buyers earlier in the year. The competition would have pushed prices upwards. Without competition, some of these are sellers are needing to reduce prices.

Now, does this mean home prices are going down across the board? Absolutely not. At this point, I would argue that this is a phenomenon limited to lower price points in the market. In particular, it is confined to lower priced properties with flaws that FOMO buyers forgave, but current buyers are less willing to accept. There are other market segments where inventory is starting to build. I could see those parts of the market start to see drops in value, but we aren’t there yet. It is also worth pointing out at that this market is incredibly variable. Above asking price sales are still higher than they were pre-Covid and there are still still homes closing for all time neighborhood highs.

Will we start to see more broad based decreases in value? That’s tough to say. We share one attribute with some of the markets that are seeing downward pricing pressure and that is we had a high number of work from anywhere relocations. What differentiates us from the markets that are seeing price decreases is our current lack of inventory. We are still well below 2019 inventory levels with no clear relief in sight. Ultimately, the balance between supply levels and demand will dictate our price trajectories. It’s also likely that this balance will continue to vary by community and by price point.

Notable August Condo Sales Numbers

I present the condo numbers with the same framework as the home sale numbers. They differ from the Realtor’s Association of Maui statistics because they exclude the islands of Molokai and Lanai.

  • Maui Realtors reported 103 condos sold in August 2022. That is a 44.9% drop from the 187 sales in August 2021. It is 13.45% lower than the 119 condos sold in August of 2019.
  • Of the 103 condos sold, 21.36% sold for over asking price and 45.63% sold for asking price or above. In August of 2021, 27.81% sold for over asking and 66.84% sold for asking price or above. In August of 2019, 12.5% sold for over asking price and 39.17% sold for asking price or above.
  • Of the 103 condos sold, 52 or 50.49% paid cash.
  • The median price of the 104 condos sold last month is $820,000. Last month’s median is 26.15% higher than the August of 2021 of $650,000. It is 60.78% higher than the August 2019 median of $510,000.
  • The average price of condos sold in August 2022 is $1,233,249. That is 30.88% higher than the average sales price of $949,939 in August of 2021. It is 40.09% higher than the 2019 average sales price of $887,539.
  • The lowest priced condo to sell in August of 2022 closed for $150,000. The 1 bedroom, 1 bathroom unit is located in the Harbor Lights Condominium in Kahului.
  • The highest priced condo to close in August of 2022 sold for $9,200,000. The 4 bedroom, 4.5 bathroom condominium with 4,817 square feet of living space is located in the Kula Villas complex within the Makena Golf and Beach Club.
  • The Kula Villas sale is one of five transactions that closed for $5,000,000 or higher and one of seventeen sales that closed for more than $1,500,000.

A Few Comments on the Condo Numbers

Since we broached the subject of home values, I might as well go down the worm hole of discussing condo values. There is a pretty clear contrast in this month’s median home and condo prices. While median home values are below August 2021, the median condo value is well above August 2021. Again, changes in median prices don’t always reflect changes in values.

However, the condo market remains more resilient than the home market on island. I am continuing to see upward pressure on prices in the vacation rental and second home condo market. Demand for the limited inventory remains strong. Some of the condo properties geared toward island residents like Kihei Villages and Southpointe seem to be losing the steam that they had earlier this year. Plain and simple, this part of market is cooling faster than other parts of the condo market due to affordability. If borrowing costs remain closer to 6% or higher and inventory grows at all, this part of the market could also start to see decreasing values. Like the home market, this ultimately depends on the balance between supply and demand.

Some Maui Beauty to Brighten This Post

Contact The Maui Real Estate Team

Contact The Maui Real Estate Team with questions, comments or feedback or if you need assistance buying or selling property on Maui. Market conditions on island are varied and dynamic. Now more than ever, it’s important to have experienced and savvy representation. We look forward to hearing from you to answer questions and learn more about your real estate needs.

Pete Jalbert

Maui Real Estate Blog

Design Details at The Oasis Spreckelsville

Carefully curated. Precision Crafted. Those are the words that stuck in my head when I first spent some time at the Oasis in Spreckelsville. The quality of construction, choice of fixtures and materials and the overall interior design are all executed at truly extraordinary levels. Today’s post highlights some (but not all) of the details that help make this such a special property.

Beveled edges on the marble and the Boffi Cabinetry in the Kitchen of the Oasis.

The Boffi Kitchen blends function, beauty and durability. This close up shows the beveled edged on the marble counter tops and the Corian material cabinetry.

Gaggenau oven, coffee and espresso makers and warming trays.

Gaggenau appliances complement the Boffi cabinetry. They include a coffee/ espresso maker, conventional and steam combi ovens, warming drawers, induction and lp cooktops and refrigerator. There are Gaggenau wine refrigerators off the dining room.

You aren’t going to find any outlet covers in this home. The outlets are flush with the marble border along the countertops in the kitchen. Elsewhere, the outlets are flush with the Antiqua stone plaster walls.

Baccarat chandeliers punctuate the living room and dining room with personality and beauty.

Porro closet system open
Porro closet system closed

Like many parts of the home, form and function combine really well together with the Porro pullout sliding closet systems in the bedrooms.

Third bathroom shower at the Oasis

This photo of the shower in the third bathroom highlights a couple of notable design details. The Flos flower light fixtures designed by Marcel Wanders add some pop to showers throughout the home. The owner also included these flower fixtures around the exterior. This brought some continuity to the interior and exterior lighting. The book matched marble is another notable feature. This photo doesn’t completely do justice to the book matching. That said, it is a higher level of stone work than what you will see in most Maui luxury homes.

Door frame details.

This shot shows some of the quality teak woodwork done around a door frame, but there is something else that is worth pointing out. When we showed the house to the owner of another brokerage, he reveled in the quality of the work and said it was a “design nerd’s paradise”. He also asked to take a look at the door hinges. The broker confirmed his suspicions when he observed that all screws are turned to the same position. An attention to detail that you don’t see often with Hawaii homes.

This isn’t a conventional property to market. While it offers stunning spaces that truly catch the eye, we felt the need to create a video that also captured the craftsmanship and quality curation. We welcome your feedback on the effectiveness of our efforts.

Check out the Oasis Spreckelsville Listing page for more photos and details on the property. Qualified buyers may contact the Maui Real Estate Team to discuss the property or to arrange an exclusive viewing.

Pete Jalbert

Maui Real Estate Blog

The Oasis Spreckelsville

We are proud to bring the Oasis Spreckelsville to market. Every square inch of the property well conceived and intentional. Every fixture, material, appliance, furnishing and planting carefully curated. All elements of construction precision crafted. The home and detached garage with second story apartment are nestled amidst an assortment of water features and purposeful outdoor spaces. It makes the home well suited to either quiet contemplation or entertaining a group of friends or family.

Stunning any time of day, but the oasis really shines when the sun sets
The Oasis Spreckelsville Aglow at Night

The main home features two bedrooms with ensuite baths, a third bathroom, a formal dining area and an expansive kitchen/great room. The Italian designed Boffi Kitchen has beautiful marble countertops, Corian cabinetry and Gagneau appliances.

The stunning kitchen designed and manufactured by Italian Designer Boffe. It includes Corian Cabinetry. Marble counters and Gagneau Appliances
The elegant Boffe kitchen is a beautiful space
Looking from the kitchen towards the living room spaces
The kitchen overlooks the great room area

Baccarat Chandeliers punctuate the living and dining room areas.

Stunning Baccarat Chandeliers elevate the living and dining areas

Boffi sinks, fans and showers, Dornbracht fixtures and Flos lighting are among other design choices that complement the nearly flawless craftsmanship. Reclaimed, oiled teak floors, book matched marble counter tops and baths continue the theme of simple elegance.

One of the bedrooms in the Oasis Spreckelsville with the soaking tub located right outside
One of the the bedrooms with a 6 x 12 soaking tub visible just outside
Bathroom of the oasis
Flos Lighting, Book matched marble and a Boffe Shower make for a stunning bathroom

The Studio

The hidden kitchen in the guest studio

The well cultivated, detached studio apartment offers finish and fixtures equivalent to the main house and one of the coolest “hidden kitchens” around. It is a perfect guest space or even a fantastic home office.

Outdoor Spaces

The pools of the property offer beauty, tranquility and refreshment. The zero edge main pool is a natural entertainment space. The 64 foot lap pool is a lot more than just a work out space. It serves as a reflection pool for the lush landscaping and exterior artwork. The 6′ x 12′ garden soaking tub is a salve for the soul. A fourth water feature with fountains creates additional sensory pleasures. Multiple outdoor showers offer a place to rinse off when coming back from the beach.

The zero edge pool and outdoor kitchen at the Oasis
The Zero Edge Pool in the foreground with the barbecue area in the background.

Other outdoor highlights include a kitchen/barbecue area overlooking the main pool, a covered patio area that provides a rain or shine space to enjoy tradewinds, bird song and surrounding foliage. Extensive additional lanai areas make for good spaces for morning coffee or tea or an outdoor dinner party. The lush tropical landscaping thrives with surprisingly little maintenance. The landscaping combined with privacy fencing make you feel like you truly are in your own little oasis.

The lap pool of the oasis at twilight
The 64 foot lap pool

Contact The Maui Real Estate Team for More Information

The Oasis Spreckelsville listed turnkey for $9,800,000. Check out the Oasis listing page for additional photos and details. Watch for additional content on this property on our blog. A video is in the works and there are tons of stunning photos not featured on the MLS. Contact The Maui Real Estate Team for additional information or to set up a showing.

Pete Jalbert