Maui Real Estate Blog
Kauhikoa Farms CPR Lot
We just brought a new listing to market in the Kauhikoa Farms subdivision in Haiku. This is the main house portion of CPR land. The land consists of roughly 1.3 usable acres. The lot offers ocean and mountain views. It is partially fenced. There is electricity adjacent to the property. Water for the property will be provided via a private water system. This is a great option for those that are thinking of building a house in Haiku.
Kauhikoa Farms is the newest subdivision in Haiku. It is located within a short distance of Haiku town. Haiku Town includes a fitness center, yoga studio, shops and restaurants such as Nuka and Colleen’s. The neighborhood is less than ten minutes from the world renowned Ho’okipa Beach Park and fifteen minutes from Paia Town.
This listing is offered for $378,500. This property sold! Contact The Maui Real Estate Team for assistance with other Maui Land Listings.
Maui Real Estate Blog
Haiku Acreage Near Jaws
Last week, we brought a great new land listing to the market in the North Shore Community of Haiku. This 17 acre parcel of land is located on the ocean side of Hana Highway just a short distance from the world renowned, big wave surf break Jaws. The lot includes two installed county water meters, substantial Hana Highway frontage and a perfect building site tucked away from the rest of the property. The building site offers beautiful ocean and East Molokai views and a preferred Northwestern orientation. The acreage makes the property a good fit for someone looking for an equestrian property or an agricultural operation. The views, location and the privacy make it well suited for someone looking for an estate.
The property is roughly 15 minutes from Paia town and ten minutes from Ho’okipa Beach Park. With good restaurants, good yoga studios and a new grocery store coming to Haiku, you don’t even have to venture that far for nice amenities. This property is offered for $1,195,000. Check out the 4505 Hana Highway listing page for additional photos and details. You can contact The Maui Real Estate Team with questions or to arrange a viewing of the property.
Maui Real Estate Blog
Two Building Lot Opportunities in Haiku
We recently listed Apartment A and Apartment B of a condominiumized agricultural lot in Haiku. Typically an agricultural lot allows for the construction of a primary residence and an accessory farm dwelling (a cottage) with up to 1,000 square feet of living space. The sellers split the two acre lot via the CPR process or what is known as condominiumization. The end result is two “apartments”. Apartment A consists of 1.3 acres and the rights to build a primary residence . This lot has approved building plans already in place for a three bedroom, two bath, Hawaiian Plantation Style home. A new owner could literally start construction within days of closing. Apartment B consists of .7 acres of land with the potential to build an accessory farm dwelling with two beds, two baths and 1,000 square feet of living space.
These lots are located in the Peahi Hui subdivision. The subdivision consists of 16 full (not condominiumized) agriculturally zoned lots between 2 and 4 acres in size. Peahi Hui has convenient access to Hana Highway. It is roughly 10 minutes to the world renowned Ho’okipa Beach Park and 15 minutes from Paia Town. It is just over 5 minutes from Haiku amenities like Colleens and Nuka Restaurants, Haiku Grocery, a fitness center and yoga studio.
These condo lots represent a good opportunity for Haiku buyers looking for new construction. You can choose the finishing and details to your specifications. Apartment A is offered for sale for $258,500. Apartment B is offered for $358,500. Check out the listing pages for Apartment A and Apartment B for additional photos, maps and details. Contact The Maui Real Estate Team if you have questions on the properties, condominiumized land or to arrange a showing of the lots.
Maui Real Estate Blog
Haiku Off The Grid Lot
People have been living off the grid in Maui for decades. In rural parts of our island, electrical and water infrastructure can be limited. That means people may need to use catchment systems to capture their water supply and photovoltaic panels to generate power. While off the grid living may be the norm for some island residents, it is something that is getting more and more discussion and interest from the general public. PV systems have become more advanced and less expensive to install. We are also appear to be on the cusp of seeing some exciting advances in home energy storage. On a recent investor call, Elon Musk announced that Tesla will be entering the home energy storage market. Tesla batteries are supposed to start production in as soon as six months.
With off the grid becoming more accessible, it is a particularly exciting time to bring an off the grid land listing to market. This lot in Haiku is .7 acres of flat and usable land. The ocean views from the building site are truly stunning.
The lot is located near the end of a quiet country road. It overlooks Opana Gulch. Opana stream runs through the gulch and can sometimes be heard from the lot. Looking across the gulch, there is nothing but forest views extending up towards the Koolau gap of Haleakala. This is truly a place of quiet that brings you back to nature.
Opana Gulch includes areas of Bamboo Forest.
Opana Stream running through the gulch near the property.
There is nothing but forest land when you get to the end of the road. This is a view from off the property looking up Opana Gulch towards the Koolau Gap on Haleakala.
Maui Real Estate Blog
Haiku 2013 Midyear Real Estate Market Update
While we have taken a look at the overall Maui Midyear Maui Real Estate Statistics, I wanted to hone in on some of the individual communities across the island. We are going to start with the North Shore community of Haiku. Haiku encompasses a broad geographic area along the Northern slope of Haleakala Volcano. It ranges in elevation from a few dozen feet above sea level all the way to almost 1,400 feet above the Pacific. While known to receive more rainfall than most parts of the island, there are a pretty wide variety of micro climates. Some areas receive approximately 40 inches of rain a year and while other areas of true rainforest receive over 100 inches of rain a year. The area’s agricultural roots still have an impact on local real estate. Many of the properties are agriculturally zoned meaning they are on lots of two acres or greater. The community is popular with residents due to a variety of factors including the sense of community, natural beauty, tropical climate, bohemian vibe and access to wind and water sports. Those same reasons also attract some second home owners.
The first half of 2013 proved to be strong for Haiku Property Sales. There were both increases in the number of homes sold and land sold when compared to the first half of 2012. That being said, there are some interesting dynamics when you drill down into various price points of the Haiku Real Estate Market. In this update, I will provide specific numbers on median and sales volumes, point at a few additional numbers that I thought were noteworthy, give my take on the numbers and the state of the Haiku Real Estate market and give some additional thoughts on what we may expect to see in the second half of 2013.
During the first six months of 2013, there were 44 homes sold in Haiku with a median sales price of $588,975. During the first half of 2012, there were 33 homes sold with a median price of $620,000. That calculates to a 33% increase in sales activity this year with median prices dipping approximately 5%.
There were 14 land sales reported during the first half of 2013 in Haiku with a median sales price of $454,500. During the first six months of 2012, there were 12 land sales in Haiku with a median price of $393,750. That is approximately a 17% bump in activity and approximately a 15% bump in median price.
Here were a few other numbers that were noteworthy from the first six months of Haiku Real Estate Sales:
- The high sale for a home was $1,600,000 for a 4,259 square foot home on approximately two acres of land. This house is situated on the ocean side of Hana Highway.
- That was one of 7 sales over $1,000,000 in Haiku during the first six months of the year. That is a modest increase in sales activity over last year when there were 5 sales over $1,000,000.
- The lowest sales price for a home was $150,000 for a serious fixer upper out in the Huelo area of Haiku.
- The highest priced land sale for the first six months of the year was $1,000,000 for 2 acres on the ocean in Western Haiku.
- There were 6 bank owned or REO sales that closed in the first six months of 2013. There were 3 REO that closed in the first six months of 2012. This makes Haiku something of an anomaly as most areas of the island showed a sharp drop in foreclosure transactions. I would not take this as a harbinger of things to come in the second half of 2013.
- There were four short sales that closed in the first six months of 2013.
The Haiku market saw some clear signs of improvement during the first six months of 2013. The 33% increase in home sales was strong. While median price decreased, that is a reflection of the distribution of sales rather than a decrease in values. Homes priced below $1,000,000 generally saw pretty clear appreciation. The increase in land sales volume was not quite as robust, but I think some of that may stem from a lack of inventory that fit buyer demand. I will delve into my thoughts on that a little later in the blog post. While there was improvement in the market, it would be a stretch to say all elements of the Haiku market improved. The chart below shows the distribution of sales by price point.
The biggest bump in sales activity occurred at or near the median price points of the market. The lower price ranges saw a little bit of improvement. If there were more inventory at the low end of the Haiku market, I think it is safe to say it would have sold. The high end of the Haiku market is another story altogether. There was a modest increase in sales over $1,000,000 with seven sales reported vs. the five last year. That being said, there is lots of inventory that has yet to be absorbed on the high end.
This chart gives a sense of the abundance of high end inventory on the market in Haiku. Once you get above $1,000,000, there is lots of red representing active listings. There are a handful of blue bars representing sales in the first half of the year and there is just one green bar representing the lone pending sale. This should limit the potential for any appreciation in the near future at the high end of the market. The middle of the market has fairly limited inventory between $500,000-$1,000,000. Most price points are under six months of inventory. This has led to modest appreciation in values in these price ranges. When you get below $500,000, the pickings are particularly slim. There are properties under contract, but nothing active. When properties do come on the market, they tend to go very quickly if they are priced well. This is the segment of the market that has seen the most appreciation. I will provides some thoughts on the outlook for the rest of the year a little later in our video portion of the blog.
Shifting to the Haiku land market, the chart below shows a comparison of the distribution of sales by price point between the first half of 2012 and 2013.
This chart didn’t provide me with any great revelations. The pool of land for sale in Haiku is pretty heterogeneous. Value is driven by acreage, views, location, the presence or absence of infrastructure and utilities, micro-climates and exposure to the elements. Due to those factors, the shift in distribution of sales can be just as much a factor of the variability of properties sold as it is a shift in market dynamics. That being said, I can say I have seen anecdotal signs of a market shift. Land sales in Haiku started to pick up in the second half of 2012. Buyers were drawn to the land market as home inventory started to shrink. Two acre lots with infrastructure and ocean views have been in particular demand. As supplies shrink, we have seen some price increases. At this time last year, a two acre lot with water and ocean views started around the low to mid $300,000s. Most of these properties are now starting in the $400,000s.
While the chart with the comparison of 2012 and 2013 sales didn’t show much, the chart below offers a little more insight into the current market. This chart compares the active inventory, the properties that are pending and the properties that sold in the first six months of 2013.
There are two things that stand out in this chart. The first is the big number of pending sales in the $300,000-$400,000 range. Almost all of these are from the Peahi Hui subdivision. This is a new agricultural subdivision boasting views and all utilities. It never officially went on the MLS and sold out within a couple of weeks of being announced in the real estate community. The lots were priced at or below recent comparable sales and buyer demand was strong. The second thing that stands out in the chart is the abundance of active inventory above $1,000,000 with only one recent sale in that range and no pending properties. It is setting up as a tale of two markets with upward price pressure near the top of the market and downward price pressure on many of these higher end Haiku land listings.
Now that you have a little better sense of what happened in the first half of the year and how things look currently, I wanted to give a few thoughts on what we may see the rest of the year in the Haiku Real Estate market via this video commentary.
Just a quick note on the video above, there was one home listing below $500,000 that came back on the market after I completed filming. If you have any questions about Haiku property, don’t hesitate to contact the Maui Real Estate Team. We would welcome the opportunity to discuss the market and your real estate needs. You can also search the current inventory of Haiku Real Estate listings on MauiRealEstate.com.
Maui Real Estate Blog
Haiku Real Estate 2012 Year End Market Report
This is the second installment of our look at how the real estate market performed in individual communities around Maui during 2012. Today, we are taking a glance at the Haiku Real Estate Market. Haiku is a rural community on the North Shore of Maui. The area draws residents and visitors for its tropical beauty, access to great wind and water sports and country charm. Real estate in the area ranges from residences on small lots to sprawling country estates. Many of the homes in the community are on larger agricultural lots of two or more acres. During 2012, the Haiku market continued to improve over the doldrums of the down market. Sales volumes increased by a healthy margin for home and land transactions. Here are the statistics I pulled together on the market followed by a few thoughts on their meaning and the outlook for the market in 2013.
There were 72 homes sold in Haiku in 2012 with a median sales price of $635,000. In 2011, the sales figures were 58 sales at a median price of $637,000. That calculates to a 24% increases in activity and less than half of a percent drop in median price.
There were 29 land sales in Haiku during 2012 with a median sales price of $387,500. This is a significant boost over the 2011 numbers of 10 sales at a median price of $450,000. This calculates to 290% increase in sales activity and a 14% drop in median price.
Here are a few other numbers that I dug up while researching Haiku Sales volumes and medians.
- There were seven bank owned sales in Haiku in 2012. There were 11 bank owned sales in 2011. That is a 36% reduction in bank owned sales.
- There were seven successful short sales in Haiku for 2012. In 2011, there were three short sales. That is 233% increase in short sale activity. That percentage increase is more a reflection of the small sample than a dramatic shift in the market.
- The high sale in Haiku last year was $1,900,000 for a luxury home with cottage and pool on 2.12 acres.
- The luxury market as a whole was a little quieter in Haiku than last year. There were seven homes sold over $1,000,000 in 2012 verses 9 sold over $1,000,000 in 2011. Three of those 2011 sales were priced over $2,000,000. There were of course no $2,000,000 sales this year.
Overall, this was a year where the Haiku market began to get its legs back after feeling the influence of the real estate downturn for the previous four years. The land market made strides in particular. Land sales have been languishing since 2007 on island and this was part of a broader upswing in the Maui land market.
Residential homes also saw an upswing in activity over what we experienced the year before. The one thing that is interesting to note is that the upswing was not universal. The graph below compares the distribution of home sales by price in Haiku during 2011 and 2012
As shown above, some segments saw big gains while other parts of the market performed below 2011 levels. Some of that may just be a case of variability. We are dealing with small enough samples that there is some danger of over-interpreting some of these annual differences. That being said, the decrease in activity at the high end of the market follows trends that we saw across the island. While we saw many parts of the market increase in activity, luxury home sales were down island wide during 2012. The decrease in activity at the low end may well be a function of decreasing inventory. There are fewer bank owned properties coming on the market at these lower price ranges and there is not a big pool of conventional priced properties below $300,000 in Haiku. This is again a mirror of market trends around the island. With limited inventory and substantial demand for lower priced properties, we are also seeing some price increases in the low to middle end of the market.
When you look at the changes in medians for homes and land, it would appear that prices may have decreased. That being said, changes in medians aren’t always based on changes in property values. Part of the change stems from a shift in the distribution of sales in the market. As you can see in the chart below, the drop in median price for Haiku may well stem from an increase in sales of lower priced lots. It is not necessarily due to any decrease in value.
Changes in the value of homes can be tough to quantify in communities like Haiku. The homes and lots in the area are tremendously diverse in size, location, quality of construction, orientation to the elements and view. I would suggest that we are starting to see some price increases on properties at or below the median price for homes and land. However, it is hard to provide solid data as evidence or to apply a percentage increase in values due to the unique nature of many of the properties that have been sold.
What will 2013 bring for the Haiku Real Estate market? That is tough to say. Inventory levels will play a major role in future market performance. There is still strong interest from buyers looking for properties, but inventory levels are very low, particularly below the median price. The chart below highlights the issue at hand. It compares the the price range of the current listings on the market that are active and compares them to sales in the last year. Pending sales are not included in the chart.
The chart points out the tremendous scarcity of inventory in the lower price ranges. As evidenced by the sales, this is an area with higher buyer demand. Conversely, the higher priced luxury market has a fairly deep pool of inventory. Looking at the sales numbers for 2012, this is an area that has seen limited sales activity. For buyers shopping in parts of the market where inventory is scarce and demand is high, they should expect a lot of competition on well priced properties. Multiple offers and sales prices over asking won’t be uncommon. The conditions are in place for price increases in this segment of the market. Haiku luxury buyers may find that the depth of inventory could provide some opportunity for comparative values. Sellers should carefully evaluate where there home fits in this complex market. Well priced, well cared for homes near or below the median sales price will be well received in the market. While inventory is needed, overpriced properties will still languish in this market. Sellers may also find that appraisal is challenging with financed buyers if the contract price is too far above recently closed comparable transactions. Luxury sellers who want to sell quickly may will need to position themselves well against the rest of the inventory to stand out.
We hope this report helps you better understand the conditions in the Haiku Real Estate market. If you would like a free analysis of the value of your home or land, tell us a little more about your property and we’ll happily provide this service. We would welcome the opportunity to discuss how we may service your real estate needs. If you are looking to buy property in Haiku or anywhere else on Maui and require thoughtful, professional representation and service contact the Maui Real Estate Team today.You can see all of the current Haiku Real Estate listings on MauiRealEstate.com.