Maui Real Estate Blog
Kapalua Luxury Market Update
Billy had a nice close in the Pineapple Hill area of Kapalua yesterday. The 4,125 square foot executive home with pool and beautiful ocean views closed for $2,400,000. With the recent closem I thought it was worth taking a look at the year to date sales in Kapalua and how they stack up with last year’s numbers. This is a continuation of the luxury market updates I have been providing on the Maui Real Estate Blog. I have already done updates on the North Shore and Upcountry market, Wailea and the overall Maui Luxury Real Estate Market.
Kapalua draws visitors and home buyers from all over the globe. Owners value the area’s stunning natural beauty, pleasant climate, world class golf and resort amenities. It is a smaller resort area than Wailea and a smaller inventory of real estate. The entry point in to the market for homes is higher than Wailea while the entry point of condos is about comparable. Since the inventory is smaller, I am not going to break the homes and condos into different price categories. I will make a couple of observations on the different price ranges in my notes.
- Kapalua Home Sales
Sales between January 1, 2007 -> July 12, 2007 = 7
Sales between January 1, 2008 -> July 12, 2008 = 5
- Kapalua Condo Sales
Sales between January 1, 2007 -> July 12, 2007 = 19
Sales between January 1, 2008 -> July 12, 2008 = 14
These numbers are pretty straight forward. There have been no new projects sales over this time, so I don’t have to do any filtering to get a clearer picture of current market demand. As you can see home and condo sales are down. Condos are off 26%. This is a little higher than the 18% dip overall in volume that we have seen island wide.
I was able to look at the home numbers with a little more granularity due to the lower volume. While the volume of home sales is not too far off from last year, there have been fewer higher end sales. The top 3 sales prices for 2007 were $7,000,000, $9,150,000 and $13,940,000. The highest sales price this year comes in at $6,100,000. This doesn’t necessarily mean that home values have slipped in Kapalua, it is more a reflection of more big ticket purchases last year.
Digging at the condo market numbers did not provide any real profound observations. There were ten sales under $1,000,000 in 2007 with 9 sales under $1,000,000 in 2008. Those numbers were pretty close. It is hard to discern any specific price trends in this range. There haven’t been any sales below 2007 prices yet, but decreasing sales volume could lead to pressure on prices. It was a little surprising to see that the majority of the difference in sales volume came with condos over $1,000,000. This is a little contrary to trends in Wailea where there was more volume on the high end of the condo market. One factor may be the Ritz Carlton Club and Residences. Perhaps some of the buyers looking in this price range are opting to reserve units at this ultra luxury condo development.
The Kapalua market appears to be mirroring most of the other luxury markets on the island. While there has been a dip in volume, we are still seeing demand from high end buyers. As we are seeing continued signs of a slowing market island wide, it will be interesting to see how luxury properties continues to stack up. Access to private financing and cash has kept many luxury buyers in this segment immune to the current mortgage crunch. There is lots of good inventory to chose from for those that are interested in Kapalua. Check out MauiRealEstate.com for the current inventory of Kapalua Homes for Sale, Kapalua Condos for Sale and Land for Sale. Contact us today for additional information or the Kapalua Luxury market.