Maui Real Estate Blog

Wailea Condo Market Snapshot January 2023

I wanted to take a quick look at the Wailea condo market now that we are a month into our “peak buyer season”. I spent some time looking at the current inventory and I was left with four observations and one question about the current market dynamics.

Wailea and Makena Condo Inventory

At the time of this post, there are 27 active condo listings in Wailea. While that’s a far cry from the half dozen active listings we saw briefly in early 2022, it’s still well below normal. There are four condo complexes in Wailea with no active listings. There are six condo developments with just 1 active listing at this time. None of the Makena condo developments have any active or pending listings.

The Highest Price Points have the Most Condos for Sale

The two condo developments with the most listings are Wailea Point and Wailea Beach Villas with 6 and 4 listings respectively. In addition to the condos at those two respective developments, there is also a top row Ho’olei and a rare Andaz listing. If you are shopping at higher price points, you have a lot more options to choose from.

Aerial View of Wailea Point
Wailea Point has the most inventory of any condo complex in Wailea Resort at this time.

Prices Remain High

The second half of 2022 saw prices decrease in a number of markets on the mainland. The situation on Maui is more nuanced. Small segments of the single family home market saw values decrease. Other segments held value or even increased in value. Wailea is one of those areas where values held or increased in the second half of 2022.

This is reflected by the current Wailea inventory. Seventeen of the twenty-seven active listings are seeking new record high sales prices for their development or at least their particular floor plan. That isn’t too much of a surprise considering the fact the values are at all time highs. That said, not all of the condos seeking record high prices have the location, view or the finishing to merit those lofty numbers.

Buyer Activity Is Low

Thus far, busy season is off to a slow start in Wailea. There are 5 condo resales under contract currently. Only 3 of the 5 went under contract since Christmas. This level of activity is well below the same period of time during the past two boom years. It is quite a bit less than recent pre-Covid years. In fact, this is the lowest number of Wailea condos to go under contract to start busy season since the winter of 2013/14.

Wailea is not the only spot on the island seeing a quieter busy season. While pending sales are increasing, they are still well below normal for this time of year. Looking at Kapalua, there are three pending sales with only one new pending since the start of busy season. Ka’anapali is the busiest of the resorts with only five pending.

While Wailea’s slow start is part of a broader trend, it may also be a reflection of some of the ambitious asking prices. Which brings us to my last question…

Who Blinks First?

With low transaction volumes, it seems like something is going to have to give for us to see an increase in sales activity in Wailea. Will sellers reduce their prices? Will buyers bite the bullet? Or do we see a little bit of both?

On the sell side, the dynamics are interesting. We are seeing some price reductions, but in many instances the new asking prices are still above record highs. That tells us that the sellers truly missed the mark on their initial pricing. The sellers are also getting some mixed signals. The low transaction volume is a suggests prices should be reduced. On the other hand, inventory remains low, and there are still the occasional sales with eye popping prices. The question is whether sellers are trying to find the market or that elusive solitary buyer willing to pay a premium.

For buyers, the record high prices may be increasingly hard to swallow. That is especially the case for second home buyers coming from markets where decreases in value are common place. On the other hand, if you are seeking out a condo in one of the developments with little or no inventory you may be inclined to jump when something comes to market that checks all of the boxes. Further decreases in mortgage rates may also bring some buyers off the fence, but the impact of lower rates is not going to be as significant in the Wailea market. Keep in mind, 62% of all transactions were cash in Wailea and Makena last year.

Contact The Maui Real Estate Team

We will continue to monitor the Wailea Condo market as we progress further into buyer season. Stay tuned for more updates. You can see the active inventory of Wailea Condos for sale on MauiRealEstate.com. Contact The Maui Real Estate Team with questions or for assistance buying or selling Wailea Condos. We look forward to being of service.

Pete Jalbert

Maui Real Estate Blog

Four Listings for Your Christmas Wish List

Christmas is just a few days away. Still stumped on what to get the family or that special someone? While none of these suggestions will fit under the tree, maybe the keys would fit nicely in your Christmas stocking. Here are four of our listings that would make this a Christmas to truly remember.

For Those That Love The Ocean

If there is a certain someone in your life who loves the ocean and ocean sports, you would be hard pressed to find a better option on the market than Sugar Cove Building 6. This is the ultimate North Shore lifestyle property. This whole building in the Sugar Cove condominiums is located right above the golden sand of the beach. The beach is as good as it gets for water sports. Long considered a good spot for windsurfing, these days it is a hot spot for wing foiling, kiting, surfing, stand up paddling, body boarding and fishing. Our agent Ridge Lenny gives a taste of the lifestyle on offer in the video below.

While location may be the biggest amenity of Sugar Cove Building 6, the condo itself is a one of a kind offering. Originally three separate units, it was consolidated into one primary living space and a guest space. Overall, it includes eight bedrooms, seven bathrooms, three half bathrooms and a total of 5,950 square feet of living space. This other video highlights the quality design, materials and finishing.

The asking price for Sugar Cove Building 6 is $17,000,000. Contact The Maui Real Estate Team for more information.

For Those That Demand The Highest Quality

A Design Nerd’s Dream. Impeccable finishing. Precision Crafted. Carefully Curated. Just some of the ways that people describe the Oasis in Spreckelsville.

This immaculate property includes a 2 bedroom, 3 bathroom main home, a detached garage with second story studio apartment, a soaking tub, lap pool and a zero edge main pool. The construction is truly of the highest quality as are the fixtures and building materials. It is sold with furnishings and selected artwork. Again, all of these items carefully chosen by the owner with an attention to detail and quality rarely seen on Maui. Check out our previous posts on the Oasis, its outdoor spaces and design details. Offered for $9,800,000.

For Those That Want to Build The Best…

Five Star Location. A big lot of 1.88 acres. A gated subdivision with only one other vacant lot. Easy access to beautiful beaches and fantastic resort amenities. All of the above make 21 Ualei Place a truly tantalizing spot to build a spectacular luxury home. Located in the One Palauea subdivision, the lot is just to the south of the Fairmont Kealani. Palauea Beach, Polo Beach and the Wailea Beach Path are all a short minutes walk from the property. The Wailea Blue, Emerald and Gold golf courses are again all close by.

Aerial view that shows 21 Ualei places proximity to beaches, the Wailea Beach Path, golf courses and other resort type amenities.
21 Ualei Place in One Palauea Bay. Gated and spacious for privacy, but accessible to so many of Wailea and Makena’s amenities.

This lot is offered for $6,500,000. Check out the 21 Ualei Place listing page for more photos and details.

For Those That Want to Build Now!

Building takes time and patience. One of the biggest time sinks can be the permit process. That is particularly true when you are in a special management area close to the ocean. That makes 300 Mehana Unit B in Haiku the perfect spot if you want to build your dream cottage on Maui sooner rather than later. SMA approvals are done and the permits approved for a 1,000 square foot accessory farm dwelling (cottage), detached garage and agricultural workshop. The CPR property includes 4.22 acres of land. There is plenty of room for gardens or orchards. Set close to the ocean, you can hear the waves and smell the salt in the air. The ocean and Haleakala views are both fantastic.

Ocean views from 300 Mehana Unit B
Ocean views from 300 Mehana Unit B

Grab your builder and break ground in the new year. The asking price for 300 Mehana Unit B is $895,000. Check out the listing page for more photos and details.

Contact Your Favorite Maui Real Estate Elves

There you go! Four last minute gift ideas for the family or a special someone clearly not on the naughty list. Contact The Maui Real Estate Team for help with these properties or if you have something else in mind on your real estate holiday wish list. We look forward to being of service.

Pete Jalbert

Maui Real Estate Blog

Well That Was Fun!

For most buying a home on Maui is a lifestyle choice. We aren’t a center of commerce. You don’t come here for shopping or night life. It takes a minimum of five hours to get here via plane. People buy homes on Maui for natural beauty, climate and for the general lifestyle offered. For the North Shore of Maui, the ocean and the world class water sports offered are an integral part of that lifestyle. We recently hosted a broker’s event that was a little unusual. With a couple of listings that really appeal to those who love ocean sports, Billy and Martin came up with an idea that highlighted the amazing attributes of these two respective properties.

The Maui Real Estate Team invited a group of ocean sport loving Realtors for a downwind coast run that started at our listing at 78 Aleiki Place on Kuau Point and ended at Sugar Cove Building 6 in Spreckelsville. Most of the participants used wing foils to go down the coast. We had one agent riding a stand up foil and Kai Lenny used his kite. Kai’s brother Ridge, who is an agent in our office, narrates the video below that shows highlights from the event.

Not your typical broker’s event.

The condominium home at 78 Aleiki is just steps from the Kuau Point launch. If you like to wing, windsurf, SUP, or surf. There are a couple of surf breaks accessible just off the point. Of course, it’s also a great spot for starting a downwind run to Spreckelsville, Kanaha Beach Park or Kahului Harbor. Sugar Cove is a great spot for pretty much any ocean sport you can imagine. Surf, SUP, kite, windsurf, wing, body board or body surf off this great little beach.

Needless to say, the participants said this was a lot more fun than any other real estate event they ever attended. Not only was it a good chance to highlight the two properties, it was also a good reminder to all participants on just how lucky we are to call Maui our home.

Contact The Maui Real Estate Team

If you have questions about either of these properties, give us a call at 1 800 579 1525. We would be happy to answers questions or provide additional service.

The Maui market is changing. Needless to say, we aren’t immune to the latest increases to interest rates. Days on market are getting longer with buyers fewer. While there will still be buyers seeking Maui’s amazing lifestyle, the easy days for sellers are coming to an end. In this market, sellers need top quality representation. The Maui Real Estate Team uses high quality photography, videography and creative marketing like the broker’s event highlighted here to help properties stand out. Contact The Maui Real Estate Team if you are considering listing your home. We look forward to a no obligation sit down to discuss your needs and our services.

Pete Jalbert

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