May 2024 Paia Real Estate Market Update

May 2024 Paia Real Estate Market Update Cover
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This is the second of our series that provides neighborhood and community-level market updates. Today’s post looks at Paia town, where The Maui Real Estate Team office is located. This North Shore Beach Town offers access to great beaches and water sports, good shops and restaurants, the charm of an old Plantation town, and a little bit of Bohemia. This post looks at market activity in 2023 and the year to date in 2024.

Recent Paia Market Activity

It is worth noting that our MLS groups Spreckelsville and Paia together in the MLS. We already posted on Spreckelsville market activity, so this post focuses on Paia and Kuau.

The map above shows recent sales and active listings in Paia. 2024 Sales are represented by red pins, 2023 sales are represented by orange pins, and active listings are indicated by green pins. You can find out more about the properties by clicking on the pins.

Notes on 2023 Paia Real Estate Market Activity

In 2023, 13 homes were sold in the Paia and Kuau Areas. That is the lowest annual total since 2008, when ten homes were sold. It is worth noting that there were other years with slower sales totals. For example, in 2019, only 14 homes sold.

Sales volume in Paia is based on both demand and the number and composition of homes sold. That explains why you can have a slow year like 2019. There just wasn’t much to buy. Last year was a slow year island wide for sales so it is not a big surprise that we saw such low sales volumes. However, the number and composition of the homes listed did not help. Only 3 of the homes sold closed for less than $1,000,000. Some of this is due to price appreciation. Some of that is due to just fewer people listing their homes at lower price points.

Skill Village was the busiest neighborhood in Paia for sales activity. Kuau Bayview, North Shore Village, and Kuau Point neighborhoods had two sales each during 2023.

The median price of the homes sold in Paia and Kuau in 2023 was $1,350,000, and the average price was $1,404,000. Again, this speaks partly to the scarcity of homes for sale under $1,000,000. The highest sale in the area during 2023 was $2,572,603 for a 5-bedroom, 3-and-a-half-bath residential condo on Kuau Point. The lowest sale was $775,000 for a 3-bedroom, 3-bath home in Skill Village.

One condo was sold at Kuau Plaza in 2023. The one-bedroom unit sold for $800,000, a new record for the condo development just down the road from Mama’s Fish House.

The newly reopened and revamped Cafe Mambo in Paia Town.

Notes on 2024 Year-to-Date Paia Real Estate Activity

As of May 1, five homes have been sold in Paia and Kuau during 2024. This is ahead of the 2023 pace when only 2 homes had sold in the area by May 1.

While the sample size is small, no Paia neighborhood has more than one sale in 2024. There is one sale each in Kuau Bayview, Skill Village, and Kuau Point. There is also one oceanfront sale on Tavares Bay.

The median price of the homes sold for the year-to-date is $1,875,000, and the average sales price for the five homes is $2,573,000. The highest sale thus far this year is $5,200,000 for a four-bedroom, three-and-a-half-bath home with 3,026 square feet of living space on a 17,289 square-foot lot. The lowest-priced sale thus far is $902,000 for a 2 bedroom/1 bathroom home with 892 square-feet of living space on a 7,000 square foot lot in the Skill Village neighborhood. It is the only sale under $1,000,000 for the year-to-date.

Thus far this year, one condo has sold in Kuau Plaza. The one-bedroom, one-bathroom unit closed for $838,500.

Outlook for the Paia Real Estate Market for the Rest of 2024

It’s hard to say how the rest of the year will unfold for the Paia Real Estate Market. Unpredictability is the rule in this day and age. A few factors may impact the market.

At the top of the list is inventory. While the ten homes and one condo listed seem like a decent supply for the market, it is a little tighter when you scratch the surface. With three of the listings, the owner reserves the right to refuse offers on individual properties and sell them instead as part of a portfolio sale that includes the Paia Inn. Of course, there are also no active listings priced below $1,000,000. The lowest-priced home on the market is $1,449,500. Buyers looking to get a foot in the door in Paia will be depending on inventory not listed currently.

Demand throughout the rest of the year also remains a question mark. Interest rates remain over 7%, which reduces affordability. Visitor numbers on the island remain lower in the aftermath of the fire. We are also getting closer to what will likely be a tumultuous election. Will that cause some buyers to hit pause on their purchase plans?

While Kuau Plaza usually only generates one or two sales a year, proposed legislation by the Mayor of Maui could significantly impact this small North Shore condo development. The apartment-zoned condo is on the Mintoya List. Condos on the list can do short-term rentals. However, the Mayor’s new legislation would eliminate vacation rentals in apartment-zoned condominiums. If the bill passes, it could decrease demand and increase supply.

Need Assistance in Paia or Kuau?

With our office in town, The Maui Real Estate Team knows the Paia and Kuau real estate market well. We keep a close eye on the current inventory and ears to the ground for potential off-market properties. Buyers can check out the current Paia Real Estate listings on Sellers and buyers are also welcome to contact us to set up a consultation with one of our Brokers or agents.

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