Maui Real Estate Blog
Kai Makani 2014 Market Update
I live just up the road from Kai Makani. My family and I often enjoy the beaches that run in front of this North Kihei condo. In the summer, we enjoy playing in the summer surf on our stand up paddle boards. During the winter, the summer swell has given way to calmer waters. From the sands in front of Kai Makani, we can now enjoy the frequent whale sightings and the sun setting further south over the open ocean. Since my last Kai Makani blog post, I have kept a close watch on sales activity in this complex and wanted to give some highlights.
Ten units closed in 2014, 3 fewer than in 2013. Three apartments were 2 BR floor plans, and seven were 3BR. High, median, and low prices were $595,000, $543,500, and $460,000 respectively. The average number of days on market was 136 days. Average price per square foot came in at $449.64.
When comparing 2014 to 2013 median and average pricing, a first glance suggests significant rates of appreciation. Median sales price grew from $475,000 to $543,500 (14.4%) and average sales price grew from $487,923 to $541,190 (10.9%), year over year. There is likely more to the story. As it is with the Maui Real Estate Market as a whole, there are many nuances and layers of information hidden behind the numbers within a single complex and we must peel the onion to find out what’s inside.
It is interesting to note that 70% of the 2014 sales were 3 BR units, and the remainder were the largest of the 3 different 2BR floor plans. This is further punctuated by the fact that 3BR units make up only 36% of the total units at Kai Makani. 2013 was different as we saw a mix of floor plans including 3 sales of the smallest available 2Br units. Only 23% of the 2013 sales were 3BR units.
In addition to the square footage and floor plan, the location within the complex is also highly determinative of value. Units toward the front, particularly with direct ocean views command a higher price. I mapped out the distribution of sales within the complex for both years and they appear quite similar.
Some of the appreciation we see year over year is a function of simple square footage. There were more large units, particularly 3Br units sold in 2014 than in 2013. But to what extent? I wanted to try to get a handle on a more accurate representation of value. When I eliminate the smaller apartments from the 2013 figures and run the numbers again, I’m still finding a healthy 5.5% increase in median, and a 8.6% increase in average pricing for 2014.