Maui Real Estate Blog
August 2018 Pukalani Real Estate Market Update
After looking at the North Shore communities of Paia and Spreckelsville, I wanted to head up the slopes of Haleakala to Pukalani. This Upcountry community has seen strong buyer activity over the last few years. Pukalani’s good weather, panoramic ocean views and easy access to Central Maui are all draws for buyers.
Notable Numbers from the Pukalani Real Estate Market
- As of August 29th, 31 homes have sold in Pukalani during 2018. That is down 11% from the 35 sales over the same period of 2017.
- The Median Price of homes sold is $715,000. That is up 7% from the median price of $668,000 during the same period of 2017.
- The average price for homes sold for the year to date is $744,393. That is up 11% from the average price of $697,307 during the same period of 2017.
- The lowest priced home sale for the year to date closed for $480,000. That home is a 1 bedroom, one bathroom home with 500 square feet of living space on a 8,364 square foot lot.
- The highest priced home sale for the year to date in Pukalani closed for $1,300,000. This 2 bedroom, 3 bathroom home has 2,060 square feet of living space on a 2.3 acre lot in Kula 200.
- There have been five condos sold in Pukalani during the year to date. That is down 29% from the seven condos sold over the same period of 2017.
- There have been four lots sold in Pukalani during the first eight months of the year. That is down substantially from the 41 lots sold in Pukalani during the same period of 2017. The sales in 2017 come with a bit of an asterisk. The vast majority of those closes were new development sales in the Kualono subdivision.
Thoughts on Overall Pukalani Market Activity for the Year
The Pukalani market has seen tight inventory for the better part of the first eight months of the year. The lower sales volumes for the year speaks more to the lack of inventory than a decrease in buyer demand. The limited supply is also a factor in the increase in both the median and average sales price. The limited supply of homes is contributing to upward pressure on home prices.
Looking at Some Specific Neighborhoods in Pukalani
The Pukalani Real Estate Inventory is diverse. There is a range of lot sizes and property types. With that in mind, I wanted to drill down into a handful of specific neighborhoods and subdivisions to get a sense of how they are faring this year compared to years past.
Kula 200 is completely unique in Pukalani in that it is a neighborhood of two plus acre agriculturally zoned lots. Located right on the border of Kula, it offers a location that balances low density, privacy and convenience. The neighborhood has the highest price point in the Pukalani area. Kula 200 has seen a relatively quiet 2018 with one sale, two pending sales and one active listing. By comparison, there were two sales in the neighborhood during the first eight months of 2018. Looking at a broader time frame, the number of homes sold in the first eight months of the year ranged between zero and four going back to 2011. This is not a high turnover neighborhood.
The Cottages at Kulamalu
The Cottages at Kulamalu is a collection of residential condos that includes stand alone units and duplexes. This development was originally constructed in 2008. It wasn’t 2011 that all of the units in the development sold. Since 2015, there have been 3-5 sales a year at the Cottages. It looks like we are going to see a similar pace for 2018. There have been two sales for the year to date, with two active listings.
The Residences at Kulamalu
The Residences at Kulamalu is a collection of homes on and across the street from the Pukalani Golf Course. Originally sold as vacant lots in the early 2000s, the neighborhood was built out with quality homes. As a result, it has seen some of Pukalani’s highest sales prices outside of Kula 200. There have been between one and four sales every year in the development over the last five years. This year, there have been two sales with one active listing on the market.
Pukalani Outlook for the Rest of 2018
Constrained supply is likely to keep market dynamics similar in Pukalani for the rest of 2018. Interest rates are something to keep an eye on towards the end of the year. We know interest rate increases are coming. Thus far, they have not put too much of a damper on the market. That said, we may start to see it become a source of friction to buyers if it starts to really compound affordability issues. Contact The Maui Real Estate Team if you are thinking of buying or selling a home in the Pukalani area. We would be happy to sit down to discuss your real estate needs. Check out the current active Pukalani Real Estate Listings on MauiRealEstate.com
Maui Real Estate Blog
August 2018 Paia Real Estate Market Update
As we approach the end of August, I thought this would be a good time to check in on the Paia Real Estate market. We already looked at the Spreckelsville neighborhood last week. This post will look at just Paia and Kuau. Paia has been a strong market due to high demand and constrained supplies. Hemmed in by cane fields, there have been no new subdivisions in the community since back in 2003. Over that time, Paia has continued to grow in prominence and popularity. People have sought out the North Shore town due to its proximity to North Shore wind and wave sports, natural beauty, preponderance of wellness related business and plantation town charm.
With no real growth in housing inventory and increased demand, pricing in the community has been on an upward trajectory since 2011. With limited plans for future development on the immediate horizon, the ingredients are in place for continued upward pressure on prices over the long term. This post looks at real estate activity in the community for the year to date and the outlook for the rest of 2018.
The map above shows real estate activity in Paia during 2018. The red pins represent sales while the yellow pins represent pending sales. You can click on individual pins to learn more about the individual properties. It is worth noting that the map above and the numbers below exclude the Spreckelsville neighborhood. Traditionally, the local Realtor Association lumps Spreckeslville in with Paia in our MLS.
Notable Paia Real Estate Numbers for the Year to Date
- There have been 17 homes sold as of August 18, 2018 with four homes currently under contract. Last year there were 11 homes sold over that same period of time. That is a 54% increase in sales volume.
- The median sales price for homes during this period is $615,000. The average price over this period is $1,154,610. Over the same period last year, the median price was 700K with an average price of $1,591,045. That is a 13% drop in median price and a 27% drop in average price.
- The high sales price for the year to date is $6,350,000 for a house and cottage on just under an acre of oceanfront land.
- The low sale for the year to date is $377,000 for a short sale in Skill Village. It is worth noting that the 2 bedroom, 1 bath home went under contract all the way back in February of 2017.
- There were two condos that sold at Kuau Plaza for the year to date with one more pending sale. The high sale is $375,000 for a remodeled one bedroom, one bath. This is above average activity for this small vacation rentable condo complex.
- There was one bank owned sale and two short sales among the seventeen sales in Paia this year. These are still properties being processed through the system from the last real estate downturn.
Thoughts on the Overall Activity to Date in Paia
The numbers above show a healthy bump in sales activity and a pretty sizable decrease in median and average prices compared to last year. These changes are not due to an increase in demand or a decreased value. Instead, it is a reflection of an increase in supply. For the first seven months of the year, Paia had a respite from the worst of the supply crunch. The more notable increase in supply came at the lower price points in the market. While the inventory for buyers under $650,000 remained relatively thin, it was a lot better than what was available last year. We even saw a few sales under $500,000. Unfortunately, the lowest priced inventory wasn’t that accessible to first time buyers as the condition of two of the three homes required cash buyers. The third was a home that had gone under contract all the way back in February of 2017. While Paia is a small community, it has a pretty diverse housing stock. The paragraphs below look at the sales activity in specific neighborhoods in Paia and Kuau.
Paia Halelani is a neighborhood located a few streets past the intersection of Hana Highway and Baldwin Avenue on the Mauka side of Hana Highway. It has had very little turnover in the last few years with no sales since 2015. During 2015, we saw record high sales for the neighborhood. This year, there have been two sales and both were priced under $500,000. That said, this is not a reflection of values dipping. Both homes were in poor condition requiring cash buyers.
Skill Village is located off of Baldwin Avenue about a mile above the intersection of Baldwin and Makawao Avenue. The neighborhood of modest homes sees more turnover than most parts of Paia. That said, 2017 proved to be pretty quiet year for sales with only 2 sales through Mid August. In 2018, much of the increase in Paia market activity can be attributed to a resurgence in Skill Village sales. There have been a total of 9 sales in the neighborhood this year. That is an impressive 450% increase. Skill Village also smashed its all time sales record this year with a close of $800,000. It is worth noting that this larger home was formerly owned by a building contractor who made significant upgrades to the finishing of the property.
Kuau Bayview is another neighborhood that experienced an increase in sales through the middle of August. After only two sales in all of 2017, there have been four sales this year. Three of the four sales were noteworthy. We saw the first ever $1,000,000 sale in the neighborhood, the highest sales price for a home that backs on to Hana Highway and the highest ever cost per square foot sale. It is clear that Kuau Bayview remains an in demand neighborhood for Paia buyers.
While not a neighborhood per say, I did want to look at the sales activity for Paia Oceanfront Homes. There have been two sales this year. One for a home on Nalu Place on Paia Bay. The other home was further East from downtown on Lae Place. The large oceanfront lot of just under one acre has a home and a cottage. That property has exchanged hands three times in the last ten years. The two sales to date this year equals the same number as last year through the same period of time. There is one other oceanfront home currently under contract.
Paia Outlook for the Rest of 2018
While the Paia market saw volume increase due to an increase in inventory over the last seven and a half months, the remainder of the year may see limited sales due to shrinking inventory. There are eight listings in Paia and Kuau currently with four of the eight homes under contract. While the pending sales will help to pad the year to date totals, buyers are going to find limited choices unless some additional homes come to market. You can see the current inventory of Paia Real Estate listings on MauiRealEstate.com. Contact the Maui Real Estate Team if you are thinking of buying or selling a property in Paia. We would welcome the chance to be of assistance.
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August 2018 Spreckelsville Real Estate Market Update
Now that we are seven months through the year, it is a good time to check on how some of the different markets around the island are faring for the year to date. First on the list is Spreckelsville. This North Shore neighborhood is a core market serviced by the Maui Real Estate Team. Sales volumes for the neighborhood are typically pretty small, but Sprecks tends to be one of the strongest markets on the island. Spreckelsville is highly unusual in that a disproportionate number of sales are unlisted properties. Constrained supply and high demand leads to buyers and their agents beating the bushes for opportunities.
This post takes a look at the activity for the year to date in Spreckelsville and some thoughts on the market outlook for the remainder of the year.
The map above shows current listings and sales for the year to date in Spreckelsville. Green pins represent active listings. The yellow pin represents a pending sale. The red pin represents a sale. You can click on the individual pins for details on the properties.
Sprecks Sales Activity
When you look at the map above, the first thing that sticks out is the solitary red pin. There has only been one sale for the year to date with one pending sale at this time. The one close was actually a bulk sale of three lots that were not on the market in the E Paepae Ka Puko’a subdivision. The pending sale is a home along Hana Highway in the Sprecks V subdivision. At this point, we are well behind the pace of 7 sales in 2017. It could well be the slowest year for sales in Spreckelsville since 2010.
Why have we seen a dip in activity? When we last checked in on the Sprecks market in March, I anticipated a slow year for sales volume. The reason I gave was a relatively small inventory. The market appears to be following my projections. Low inventory tends to keep sale volume in this neighborhood limited. This has been a year of particularly low inventory. For a good portion of the year to date, there were only two listed properties on the market. Two of the current listings have been on the market for less than 60 days.
The biggest years for sales activity in Sprecks have been when MLS sales are augmented by the sales of unlisted properties. This year, the one and only sale was an unlisted property. That is notable in and of itself, but I am wondering if the pool of potential off market sellers may be thinning. After a lot of years of off market sales activity, I am not surprised to see an ebb in purchases. Perhaps, there isn’t much fruit left to shake out of the tree. I don’t have any definitive evidence to back this up. I may well be wrong. This is just a feeling I have at this point.
Outlook for the Rest of the Year
I would anticipate a relatively quiet rest of 2018 for sales activity in Spreckelsville. As mentioned before, there is one property under contract. That said, the buyer and seller just agreed to terms this week so there are no absolute guarantees it will close. If it does, that will leave three active listings.
The sellers just reduced the price of 2409 Waipua by over $300,000. This is a big, well built, beautiful home right on the golf course. This price reduction makes this an appealing opportunity for executive home buyers. Pa’ani Point is a true legacy property. It includes an acre of oceanfront land with a legal seawall, a home and three additional cottages. At $14,000,000, the pool of buyers for homes at this price point is limited. That said, it is a value to compared to the two sales that have closed on Stable Road over the last couple of years.
You can find more photos and details for the current inventory of Spreckelsville Real Estate Listings on MauiRealEstate.com. As I mentioned above, I wouldn’t anticipate many new listings coming to market or sales of unlisted properties, but you just never know. We will continue to keep our ears to the ground for opportunities for buyers. Contact The Maui Real Estate Team if you are interested in buying or selling in Sprecks. We would welcome the chance to be of assistance.
Maui Real Estate Blog
March 2018 Paia Real Estate Market Update
As we approach the end of the first quarter, our Team wanted to provide an update on how some of the real estate markets around the island have been faring. The Maui Real Estate Team’s office is located in Paia on Maui’s North Shore. It only makes sense that it would be near the top of the list of communities for that we profile. This small beach town has been one of the stronger real estate markets on the island this cycle. With very limited growth in inventory over the last 15 years and a significant increase in demand, the recipe for price increases has been in place for some time. Spreckelsville is part of the Paia zip code and included within the Paia MLS area via the Realtor Association of Maui. We already did one market update focusing specifically on Sprecks. This update focuses more on Paia town itself and the neighborhoods of Kuau located to the east of Paia town.
The map above shows the geographic distribution of recent sales activity and current listings in Paia. Red pins show sales, yellow pins show properties that are currently under contract and green pins indicate active listings. You can click on the individual pins for more details on the properties.
Here are the notable sales numbers from the second half of 2017 and the first couple of months of 2018 in Paia town.
- There were 8 homes and one condo sold in the last half of 2018. There have been three homes sold thus far in 2018. There are an additional five homes under contract.
- Over the same period of 2016-2017, there were 14 homes sold and one condo sold. That is a 22% decrease in home sale volume.
- The Median price of the homes sold over the last 8 months is $747,000. The average sales price for the 11 homes that closed is $1,837,563. Over the period between July 1, 2016 and March 15th, 2017, the median price of homes sold was $590,000 and the average price was $840,000. That is a 25% and a 218% increase respectively. These charges aren’t solely a reflection of increases in value. They are also due to a higher number of more expensive sales and less inventory and activity at the lower price points in the market.
- The high sale over the last 8 months was $4,855,200 for an oceanfront home in Paia. This five bedroom, four and a half bath home with 3,809 square feet of living space is situated on a 15,882 square foot lot. This sale was notable in that it was the first luxury home auction in the Paia area.
- This was one of four sales in Paia that closed over $3,000,000. The other three closes were all ocean or beachfront properties.
- The lowest priced home sale was $521,000. This was for a three bedroom, two bath home with 1,508 square feet of living space on a 7,871 square foot lot on Baldwin Avenue.
- The one condo that closed at Kuau Plaza sold for $354,000. That is a new record sale for a one bedroom in that complex.
While the Paia area is pretty small, the housing stock can be diverse. The numbers above give the big picture. I wanted to take a little deeper dive by looking at some of the individual neighborhoods in the community.
Skill Village is a neighborhood located above the Paia Mill on Baldwin Avenue. It consists of mostly modest homes built in the mid to late 1980s. A lot of the homes priced in the entry point of the Paia market are located in Skill Village. It also tends to be one of the busier neighborhoods in Paia for sales activity. During the last half of 2017, the neighborhood bucked that trend. There were only two sales. The recent activity has also been happening at higher price points. The lowest priced sale in the neighborhood closed for $600,000. That was for a well maintained 3 bedroom, one bath home with 984 square feet of living space on a 6,164 square foot lot. The highest priced sale was actually the highest all time sale in the neighborhood. A home at 85 Palekana Street sold for $700,000. This four bedroom, two bath home has 1,576 square feet of living space. That record appears to be short lived with a larger, highly upgraded home located at 549 Kuanana listed for $849,000 currently under contract. Even if the sale price is well under asking, it is highly likely that this will be a new record. That house is somewhat anomalous from other current activity in the neighborhood.
After about a year or more of limited listings, we have seen neighborhood inventory increase since the start of the year. The property at 549 Kuanana is one of seven homes that are currently listed in the neighborhood. Four of the seven homes are under contract. The price points are also a little more accessible with four out of seven listings priced below $600,000.
Paia Halelani is a neighborhood that most don’t know by name. Located behind the Paia Community Center, most of the community’s modest homes were built in the early 1970s. The neighborhood has not seen a lot of activity lately with no sales in the last couple of years. Within the last month, the first two listings in some time came to market. Both homes are priced under $500,000, a relative rarity these days in the Paia market. That said, the bank owned property at 246 Kahiko is in such poor condition that they are not even allowing showings due to safety concerns. That means a cash buyer is the only possibility. The other home at 210 Kahiko also has considerable deferred maintenance and may also require cash to purchase. These two properties will not provide a great indication on neighborhood values when they close due to their poor condition.
Kuau Bayview is an Alexander and Baldwin subdivision built in the late 1990s. The subdivision has been one of the strongest neighborhoods in this market cycle. It was the first neighborhood on the island to set all time market highs after the last downturn. It has had relatively limited activity on the MLS during the last 8 months. The listing at 34 North Laelua is the only property listed on the MLS at this time. That home is currently under contract. There was one for sale by owner in the neighborhood that recently sold. I did a public records search and could not find the sales price as of yet. There is also one other For Sale by Owner which just came on the market.
This is more a property type or general location than neighborhood. The shoreline of Paia has seen a fair amount of real estate activity over the last 8 months with four closes. They are a fairly diverse set of properties. There was the aforementioned auction property. That plain and simple was a a luxury oceanfront home. The second highest sale was for a large Plantation Style home right on the oceanfront of Paia Bay. The home was filled with Old Hawaii Charm and fetched a price tag of $3,600,000. While the previous two sales were finished articles, the last two oceanfront sales were more upside purchases. The first was .64 acres on the beach at Paia Bay. There are two structures on the property including a 3 bed, 2 bath home with 2,260 square feet of living space and a 3 bedroom, 1 bath home with 960 square feet of living space. The zoning allows for the possibility for a third structure. The last sale included over an acre of oceanfront in the middle of Tavares Bay with a 1930s vintage Old Hawaii Style Home. The sea wall on the property began to fail while it was under contract. This led to a price reduction during the transaction. The new owner will need to address that issue. These two properties both closed for $3,300,000.
Unless, there is an influx of new listings, I would expect that we may see a slow down in activity for oceanfront homes in Paia. There are just three Paia oceanfront properties on the market at this time. One is priced well over the all time record sale for oceanfront homes in Paia outside of Spreckelsville. Another home is priced just below the record sale. The all time record sale was on more land, with bigger, newer and more upgraded homes. A buyer would really need to fall in love with the respective locations of those listings to pay close to the asking prices.
Paia Market Outlook for the rest of 2018
Paia has relatively limited inventory at this time. That is likely to be the biggest constraint to a lot of sales activity for the rest of the year. Another thing to watch is interest rates. While we have a little more inventory in Skill Village, lower priced properties may cool off a little if we see a significant rise in interest rates. I can’t foresee any real drastic shifts in the market unless we have some sort of larger global event that causes significant economic uncertainty. The fundamentals of Paia overall remain strong. It still has a fairly limited number of properties and the future development of homes will likely remain slow. Demand comes from both on island residents and a off island buyers. That should keep Paia as one of the more sought after real estate markets on the island.
The tight market can make for some challenges if you are a prospective Paia home buyer. With an office in the center of town and our ears constantly to the ground, we have a good sense of the inventory of both listed and unlisted properties. Sellers will find that the lack of inventory makes this a good time to come to market. Sellers still do need to put thought into their pricing. Even with limited inventory, overpriced properties can sit for a while under current market conditions. Contact The Maui Real Estate Team if you are planning on buying or selling property in Paia. We would welcome the chance to sit down and discuss your real estate needs. You can search the current inventory of Paia Real Estate Listings on MauiRealEstate.com.
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Spreckelsville March 2018 Real Estate Market Update
Now that we already into our third month of 2018, we thought it was a good time to provide updates on some of our core markets. The first one we wanted to take on is the Spreckelsville Neighborhood on Maui’s North Shore. The neighborhood is home to our broker/owner Billy and agent Martin Lenny. Our office also has a home listed on the Maui Country Club golf course. Sprecks is never a high sales volume neighborhood, but it has seen strong demand and steady price increases over the last seven or eight years. Residents are attracted to the sense of community, convenience and access to great beaches and water sports. This post takes a look at market activity during the last six months of 2017 and the first two months of 2018.
The map above shows the location of properties that sold over the last eight months (red pins) as well as the current inventory (green pins). You can click on individual pins for more information on the respective properties.
There have been six sales since July 1, 2017 in Spreckelsville including 5 homes and one land sale. Here are some of the notable numbers from the sales.
- The high sale over the last eight months was $16,000,000 for an oceanfront residential condo on Stable Road. The large home included 2.882 acres of limited common element including 500 linear feet of beachfront.
- The same buyer bought an adjoining unit of the residential condominium for $5,999,999. That was a smaller 1,180 square foot home on .4381 acres of beachfront limited common element.
- In addition to the two residential condos, there was a third oceanfront home that sold. The three oceanfront sales last year were the most we have seen in the neighborhood since the four sales in 2014.
- The one transaction thus far for 2018 was a land sale. It was a bulk sale of three lots in the E Papae Ka Puko’ Ae subdivision. That subdivision is seeing some significant changes with three houses under construction currently and a fourth set to start construction soon. If all of the new owners of the recently sold lots plan to build in the near future, there will only be a handful of vacant lots remaining in Spreckelsville.
- The six sales were spread throughout Spreckeslville with two closings on Stable Road, the aforementioned E Papae Ka Puko’ Ae subdivision land sale, the sale in Old Sprecks on Laulea and two sales in the Sprecks V subdivision.
- Two of the six properties that sold in the last eight months were unlisted. All of the properties that closed in the first half of 2017 were unlisted. During this market cycle, Sprecks has become a neighborhood where a significant number of properties are sold before being listed.
I would anticipate that the rest of 2018 will see a relatively small number of sales in the neighborhood due to the constraints of limited inventory. I surmise that unlisted properties may continue to augment the current inventory to bolster sales numbers. The limited supply is also likely to provide upward pressure on neighborhood prices.
Contact The Maui Real Estate Team if you are interested in buying or selling property in Spreckelsville. We know the current inventory, and we have ears on the ground in the neighborhood looking out for unlisted opportunities. You can check out the current inventory of Spreckelsville Real Estate listings on our site. Stay tuned to this blog for other Spreckelsville neighborhood updates.
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Haiku 2017 November Market Update
Haiku is located in Windward Maui along the island’s North Shore. It is a rural community that covers a large geographic area. It runs from sea level up to about 1,400 feet in elevation. Rainfall ranges from 40 inches to over 100 inches. Historically, the area was known primarily for agriculture. Pineapple plantation, tropical flower farms, some small scale ranching and other small farms have been located throughout various areas of Haiku. Larger scale pineapple farms are a thing of the past, but there are still are a variety of small farms around the community. Agriculture also has a big impact on the Haiku Real Estate market in that the majority of the properties have agricultural zoning. Ag zoning means lower density with lots of 2 acres or more.
Haiku residents are drawn to the area for a variety of reasons. For those whose vision of Hawaii is lush foliage and waterfalls, Haiku is the most accessible area of the island that fits this climate zone. It is close to the North Shore’s renowned wind and water sports. The world famous big wave surf spot Peahi also known as Jaws is located just offshore from the cliffs of Haiku. The area is also popular for wellness activities. The rainfall, larger lots, zoning and climate are an attraction for those who want to farm, have a small orchard and, or even a back yard garden. Some are just attracted to the area’s natural beauty and the potential for a quiet lifestyle.
With Haiku just ten minutes away from our office and two agents calling the town their home, this is a community where we work in extensively. We wanted to check in to see what is happening in the Haiku Real Estate Market after ten months of sales in 2017. This is the third of our semi-recent posts looking at the North Shore Real Estate Markets. We have also looked at Paia and Spreckelsville. Haiku is a much larger market than Paia and Sprecks. As a result, the format of this post is going to be a little different from our other efforts to date.
Haiku 2017 Market highlights
- There have been 75 homes sold in Haiku through ten months of the year. Last year, over the same period of time, there were 56 homes sold. That is a 28% increase in sales activity.
- The median sales price for the homes sold this year is $733,000. The average price for the 75 homes sold is $868,952. By comparison, the median price over the same period of 2016 was $841,500 and the average sales price was $926,075. Surprisingly, that is a 13% decrease in median price and less than a 1% increase in average price. This lower median is a reflection of more sales activity at the bottom of the market. It does not represent a decrease in values.
- The highest priced home to sell for the year to date closed for $3,999,900. The 2.189 acre oceanfront property in Huelo consists of a four bedroom, three bath home with 3,609 square feet of living space, and a separate one bedroom, one bath cottage with 519 square feet of living space.
- The property on Door of Faith was the only home in Haiku to have closed this year for over $2,000,000. There were 11 total homes that sold for more than $1,000,000.
- The lowest priced home sale to close in Haiku this year sold for $335,000. The structure on the residential condominum was in very poor condition. A good portion of the value was due to the associated land. It included 2.287 acres of associated land or limited common element.
- There were five bank owned homes that sold and three short sales for the year to date. This is an increase over just the one bank owned sale from last year.
- Just over 21% of this year’s sales have been for full price or over asking price.
- There were 27 parcels of land that sold in Haiku as of November 1. The median price for those sales was $410,000, and the average sales price was $508,950. Last year there were 21 land sales over the same period of time with a median price of $535,000 and an average sales price of $865,023. That means a 29% increase in sales for this year compared to last year, a 23% decrease in median price and a 41% decrease in average price.
- The high land sales price for the year closed for $1,725,000 for 31.25 acres with a deluxe barn on the ocean side of Hana Highway in Western Haiku. The high sale price for the year to date for a parcel of land without any structures is $1,295,000 for 2.06 acres of oceanfront land.
- The lowest priced lot to sell closed for $300,000. This condominiumized off the grid lot was limited to only a 1,000 square foot cottage and had 3 acres of limited common element.
Haiku Market Activity by Price Point
While the numbers above speak to the big picture, the Haiku market isn’t uniform in its behavior across all price points. I wanted to look at how the market has performed at the various price points in the market.
The Haiku under $500,000 market is a little more limited due to the nature of the community. As mentioned above, most of the properties are agriculturally zoned. A standard ag zoned lot is two acres or more. The price for just two acres of bare land typically starts around $400,000 and it can go up substantially from there. There are some neighborhoods with smaller residential lots in the community. Many of those small lots are clustered near old pineapple canneries that have been repurposed into commercial space. The homes priced under $500,000 in current market conditions are typically, but not exclusively smaller lots. The sales this year have also included some residential condominiums and distressed properties. It is somewhat surprising to see that the number of homes sold in this price increased this year compared to last year. In many communities around the island, sales activity in this price range has dwindled as the number of homes priced under $500,000 have become more scarce as prices rise.
I can’t say that there is a specific factor that is driving the increase in activity under $500,000. Some of that is just market variability. There has also been a modest uptick in bank owned properties. While an increase in bank owned activity during a strong market cycle may raise a few eyebrows, a little context is needed. These bank owned properties are still lingering from the last downturn. The bulk of foreclosures on this island are going through the judicial foreclosure process. That process can take years for resolution.
Buyers searching for homes for less than $500,000 in Haiku will find that the inventory is limited. Of the current inventory, three of the four active listings are cash only purchases due to the condition of the homes or other issues that might prevent financing. Well priced homes in this price range are likely to attract strong buyer interest.
The $500,000-$750,000 price range in Haiku currently includes some nicer homes on small lots, a few homes on 2 acre lots, some homes on lots between 1/2 acre and 2 acres and quite a few condominiumized homes on agricultural lots. Residential condos are an increasingly popular form of ownership in Haiku. Ag zoned lots have entitlements to build a main house and a cottage of 1,000 square feet. Many owners are opting to split the lot into two separate condo units with the main house and a portion of the acreage being one unit and the cottage and a smaller portion of the acreage being another unit. Just under 31% of the homes sold in this price point were residential condos. Many of these were the cottage portion of the condominium.
The overall market activity in this price range was strong. There was a 216% increase in sales recorded when comparing the first ten months of 2017 to the first ten months of 2016. This is particularly impressive as there were a lot of buyers shopping in this price range who reserved homes at the new Pauwela Homes Workforce Housing project. This 33 unit condominium home development behind the Haiku Community Center was not listed on the MLS. For the first few months on the market, the home buyers needed to meet county median income requirements to be eligible for purchase. Twenty-seven of the thirty-three lots were priced from $516,580-$685,000. All of these lots have been reserved and there is a waiting list for any properties that might fall out of contract. Those homes won’t close until sometime in 2018.
Buyers looking in this price range in Haiku will find that current inventory is limited. There is less than three months of inventory based on the number of homes sold for the year to date. As the busiest segment of the Haiku market, buyers should be advised that well priced properties in this range get a lot of interest. Potential sellers may find that this is a pretty ideal time to be listing a home in Haiku in this range.
The $750,000 to $999,999 price range starts a transition in market composition. There are still some residential condominiums with deluxe cottages and the main homes of the condominiumized properties selling in this price range. This is also the price point where homes on two acres that have not been condominiumized become more frequent. There are even a handful of homes on two acres with cottages available. This part of the market saw a more modest increase in activity with 19% more sales than the first ten months of 2016.
Buyers will find more inventory available in the $750,000-$999,999 price range. This is due in part to a smaller pool of buyers. While this market space is a little less competitive, well priced properties can still generate bidding wars. There were a handful of full price or above asking price sales in this range.
The homes in the $1,000,000 -$1,499,999 price range in Haiku that sold this year tend to be more upscale homes on 2 or more acre lots and homes with cottages on two acre lots. This is the one price range in Haiku where sales activity was down over the first ten months of this year compared to the first ten months of 2016. Sales are currently almost 30% below the same period of 2017. That said, there are five properties currently pending in this price range. Those five sales would make up the difference in volume between the two years.
As you get into the even higher price point, the competition for properties continues to thin. None of the homes that sold in this price range sold for over asking price or even full price. That said, quality properties will still go quickly.
When you get to the $1,500,000 price range and above, you are entering a different part of the Haiku market. Historically, this has been a market segment that has seen limited activity. There are a broad range of properties in this price range. They can be larger homes on two acres in nice subdivisions. As you get higher in price, you may have some oceanfront homes added to the mix. If you get to even higher price points in the market, there are some significant estate properties in Haiku. There was a modest uptick in sales this year with one additional close over the same period of 2015. This is the one segment of the market where there is an abundance of inventory. The level of inventory would suggest that we have a buyer’s market at the highest price point of the Haiku market. While buyers may find there are a few motivated sellers, the sellers in this segment of the market tend to be deep pocketed and patient. Long days on market are par for the course in the upper price range of Haiku.
I wanted to give a few quick thoughts on the land market. As noted in the market highlights above, there was an uptick in sales activity. More notable than the recent activity or even the current market activity is the upcoming new land development in Haiku. West Maui Land Company is set to release their new Haiku Town Development. The 31 agriculturally zoned lot development will be hitting the market within the next couple of weeks. I should say some of the lots will be coming to market. A good portion of the lots have already been reserved by employees and investors with ties to West Maui Land. The lots in the development range in price from the $400,000s up to just over $700,000. There is also one large acreage lot in the development priced in the $800,000 range. There is another land development forthcoming off of Lower Kauhikoa Road. The timing for that development is less clear. Considering the fact that the West Maui Land development was predicted to come to market during the first quarter of 2017, I will hold off on predictions on when this other development might hit the market. It will be interesting to see what this relative influx of land does to the overall Haiku land market. While I had thought the new supply might dampen recent appreciation, the volume of properties hitting the open market is a lot lower than what it could have been.
Haiku Market Outlook
The start of peak buying season is just a month away. While there is less amplitude between low and high season in a place like Haiku when compared to the resort markets, we may see a few more buyers poking around Haiku over the winter months. As it stands, I would anticipate that we will see a continuation of current market trends. The one place where I suspect activity may decrease some is at the lower price points in the market. Inventory is thinning at entry point to the market. Haiku would only be following the trends of other communities around the island that have seen decreased sales volume under $500,000. There is also some uncertainty on how the overall economic big picture will impact real estate. Interest rates are forecast to rise. Current tax reform proposals in congress are also less friendly to homeowners. It is hard to project what impact tax reform would have specifically on the Maui market and/or whether congress will pass a bill whatsoever. A more dynamic world makes it that much harder to predict our market.
You can check out the current Haiku MLS listings on MauiRealEstate.com. Contact The Maui Real Estate Team if you are considering buying or selling property in Haiku. We would welcome the chance to sit down with you to discuss your real estate needs.