Maui Real Estate Blog
Big Ocean View Land Opportunities in Haiku
A quiet country road that wanders towards the ocean. Cooling trade winds. Swaying palm trees. Vibrant greens and the vivid blues of the ocean along Maui’s North shore. If this sounds like a place that you would like to call home, 300 Mehana Road offers two separate opportunities for those that want to build their dream home or cottage on Maui. The state recently approved plans to drill a well to serve the parcel, making these two CPR properties a great places to create your own personal paradise.
300 Mehana Road is located in the community of Haiku on Maui’s North Shore. This quiet town is located on the windward side of the island. Mehana Road is a small private road on the ocean side of Hana Highway. It is about 10 minutes away from a grocery store, restaurants, food trucks, the post office and fitness centers at the Haiku Cannery. It is about 15 minutes from Paia town. Ho’okipa Beach Park is ten minutes away. The airport is roughly half an hour away.
300 Mehana Road Unit A
Unit A consists of 3.88 acres of gently sloped agriculturally zoned land. This unit is designated for the construction of the main house on the property. There is plenty of space for your building site with lots of room left over for gardens or orchards or you can expand upon the existing grove of Coconuts. The property is just one lot back from Uaoa Bay. You don’t just see the ocean, you can smell it and hear it too.
300 Mehana Road Unit B
If you are itching to build sooner, rather than later. Unit B is a fantastic opportunity. This unit has approved permits and plans for a 1,000 square foot accessory farm dwelling (cottage), a 2 car garage and an agricultural workshop. This is a massive time saver particularly since it is located in a special management area. This unit includes 4.22 acres of gently sloped land. As with unit A, it offers big ocean views and Haleakala views. There is a grove of guava trees and plenty of space to plant your own orchard, gardens and more. There is even an ag storage shed included in the sale for you to keep all your farm and garden tools.
Electric and high speed internet both run to the edge of the property. A buyer will be responsible for bringing those utilities to the building sites. There are two options for water. Many homes in the Haiku area rely on water catchment. Water is caught off a metal roof, stored in a catchment tank and then filtered prior to consumption. The seller also recently obtained approvals from the state for a well. The buyers of the units would be responsible for installation costs of the well.
Contact The Maui Real Estate Team
Unit A is offered for sale for $985,000. Check out the 300 Mehana Unit A listing page for additional photos. Unit B is offered for $895,000 with all permits and plans included. Check out the Unit B listing page for additional photos. If you want the opportunity to build both a house and a cottage and just over 8 acres of land in total, you can of course buy both! Contact The Maui Real Estate Team with questions or to arrange a tour of the two listings.
Maui Real Estate Blog
Maui Market Musings Volume IX
It’s May on Maui and time for another Market Musings. This week is a little bit more of a meat and potatoes affair as we look at notable numbers from the April Statistics and try to get a better pulse on current market conditions. National Real Estate numbers are showing signs of slightly slower activity due to current interest rates. It feels like we may be feeling something similar on Maui. Do the numbers support my anecdotal feelings? Keep reading to find out what I discovered.
Notable Numbers From the April Statistics
The April statistics are out and they speak to the strong buyer demand in January-March. I compiled these numbers using sales just from the island of Maui. I filtered out Molokai and Lanai.
- Maui Realtors reported 101 home sales. That is down 22% from last year’s 129 sales.
- Tighter inventory is a significant factor in the decreased sales numbers. At the end of April, the Realtors Association of Maui reported 176 homes on the market. That is 24% lower than last year at this time and 15% lower than the end of March 2022.
- Competition remained high for the limited inventory. Of the homes sold, 34% sold for over asking price and 56% sold for asking price or higher.
- That’s stronger than last April’s numbers of 26% over asking and 53% for asking price and above, but lower than March 2022’s 35% sold for over asking and 59% sold for asking or higher.
- The median price of the homes sold was $1,250,000. That represents a significant 28% increase over last April’s median of $975,000.
- The increase in median can be attributed in part to price increases and also limited inventory at lower price points. Only 8 homes sold for less than $800,000 in the month of April.
- The average price of the homes sold was $2,189,247. That is a more modest increase of 8% over last April’s average of $2,015,101.
- The high average prices are due to robust luxury market activity. Three homes sold for $10,000,000 or higher. A total of 9 homes sold for more than $5,000,000 and 25 for more than $2,000,000.
- The highest priced home closed for $18,750,000. That was for a 4,800 square foot luxury home with a 600 square foot cottage on just over a half acre right on Keawakapu Beach in South Kihei.
- Maui Realtors Reported 168 condos sold in April. That is down 36% from April of 2021.
- Inventory played a big part in the decreased activity compared to the year prior. There were only 158 condos on the market at the end of April. That is 50% of the number for sale at the end of April 2021 and 6% below the end of March 2022.
- As with homes, competition for condos on the market remained high. Of the condos sold, 41% sold for over asking and 62% sold for asking price or above.
- That is a substantial increase over last April’s numbers of 9% sold over asking and 36% sold for asking price or above, but a little lower than March when 43% sold for over asking and 70% sold for asking price or above.
- The median price of condos sold in April is $857,500. That is 23% higher than the median in April 2021.
- Average sales price for a Maui condo in April comes in at $1,223,669. That is 28% higher than the median in April 2021.
- Like the luxury home market, the luxury condo market remained busy. That helped boost the average condo sales price. There was a single condo sale over $10,000,000. Four condos sold for over $5,000,000 and 34 condos sold for $1,500,000 or higher.
- The highest priced condo closed for $12,000,000. That was for a ground floor 3 bedroom in the D building at Wailea Beach Villas.
What’s Happening Now?
Sales Statistics look backwards. As mentioned above, the strong April numbers reflect buyer demand from February, March and to a limited extent Early April. Since that time, Interest rates broke the 5% barrier and we transitioned out of peak tourist season.
The one relevant statistic to the present is inventory. Supply was lower at the end of April than it was at the end of March. The first five days of the month did not bring a torrent of new inventory. That’s one area where we differ from the overall national market. The National inventory of homes for sale slowly increased during the spring with healthier gains over the last week. Plain and simple, the supply side of the Maui market remains severely constrained.
What about demand? There are suggestions in the the April stats that demand has been cooling slightly. Over asking sales prices and full price sales both decreased from March. Is there anything we can tease out from the current inventory?
In Market Musings Volume 8, we looked at the percentage of new listings going under contract in 10 days or less between April 6th and 13th. It came in at 46%. Between April 19th and April 26th, 35 out of 82 listings are under contract in 10 days or less. That is roughly 43%. It is worth noting 2 additional properties went under contract only to cancel escrow.
While I don’t have a basis for past comparison, I also looked at price reductions in the market. Out of the 160 active home listings on May 5th, 59 or 37% reduced their price . Of the 130 active condo listings, 19 or right around 15% reduced their price. This can be a baseline of comparison for future Musings.
I saw the quote below and had to work into a Musings. It was such a good analogy. I could practically feel the blister forming on the roof of my mouth from a Hot Pocket I consumed in 1991.
It also resonated with me as I watched the hot sheet over the last ten days. It sure seemed like not all parts of the Maui Real Estate Market are at the same level of frothiness. That’s clearly the case when comparing homes to condos. Condos have less inventory and far fewer price reductions overall.
Within the home market, I looked at the price reductions and sorted them by community. Kula and Haiku have the highest percentage of active inventory that’s dropped their price one or more times. They both clock in with 42% of the active inventory having dropped their price.
While this validates some of my expectations. I will say this is something of a flawed metric. While Haiku has had quite a few price reductions, there are only 13 active listings. Well priced properties can still sell pretty quickly. On the other end of the spectrum only 8% of the active inventory in Ka’anapali made a price reduction to date. That would seem to suggest strong demand. That said, the average days on market for the active Ka’anapali listings exceeds 100 days.
Overall, the market remains pretty darn strong and inventory remains really low, but there is a hint of nuance to things. Some parts of the market still feel hot like earlier this winter, others are just warm. The slight cooling likely can be attributed to the significant rise in mortgages rates. Rates continue to rise slowly and other economic headwinds like the recent stock market plunge could threaten demand. Will decreased demand change the trajectory of the market or will the low inventory continue to be the determining factor in market conditions? I will keep you posted in future editions.
A Side of Maui Beauty With the Stats
Contact The Maui Real Estate Team
Dynamic market conditions call for quality, experienced representation. Contact The Maui Real Estate Team if you are considering buying or selling Maui Real Estate. We look forward to learning about your real estate needs.
Maui Real Estate Blog
Maui Market Musings Vol. I
Welcome to Maui Market Musings! This is a new feature that I hope to post weekly or at least every other week. This is going to be something of a grab bag post where I hit on a variety of topics relevant to the Maui Real Estate market and beyond.
The first month of the year is done and dusted and that means the Realtor Association of Maui January stats are out. Here are some numbers worth highlighting.
- Pending Home and Condo sales decreased in January compared to January of 2021 by 21.3 and 31.3% respectively.
- The decrease in activity is due largely to decreased supplies. The volume of homes and condos for sale are down 34.6% and 75.8%. As it stands, there is about 1.8 months of home inventory and .8 months of condo inventory on the market. Six months supply is typical of a balanced market.
- The limited supply is translating into upward price pressure. The median home price increased 18.1% compared to last January and the median condo price rose 26.3%. Those numbers aren’t an exact reflection of changes in property values compared to last January as the composition and price point of properties sold is going to have an impact. That said, it is safe to say that prices are up substantially.
- Limited supply is meaning that properties are selling faster. Days on market for homes decreased 26.8% compared to last January. Days on market for condos decreased 39.9%.
- Current market conditions also mean that properties are selling for a higher percentage of list price. On average homes are selling for 100% of list price and condos are selling for 100.1% of list price.
What Does This Mean for Buyers and Sellers?
How are these numbers translating to what we are seeing first hand in the market? We listed a nice home in Haiku last week. Within that first week, we showed the property just over 20 times, received 12 offers and went under contract for well over asking price.
Buyers should expect that properties priced close to market will attract multiple offers. The buyers winning these bidding wars are being aggressive in some cases going well over asking price and waiving some if not all contingencies. Sellers who price close to market can expect a lot of showing activity with their home.
The pricing close to market component is important. While some buyers are really reaching, some sellers may be overshooting the market. We are seeing this in particular with some higher priced parts of the market. Last year, twelve homes sold in the Lanikeha subdivision. The average sales price for the twelve homes was $2,942,347 and the median price was $2,879,500. As of right now, there are seven active listings, no pending sales and no sales. The average price of the $5,439,714 and a median price of $5,200,000. Only one of the seven listings is priced below last year’s high sale for the neighborhood. While the year is young, this is one area where homes are currently sitting.
Maui Following National Trends
The inventory crunch, short days on market and rising prices are not unique to Maui. This is a national trend. Mike Simonsen of Altos Research tracks this on a weekly basis and he reported new national lows for inventory last week.
It’s worth reading through Mike’s whole thread. He also touches on Interest rates. Speaking of rates…
Rising Interest Rates
Mike’s thread mentions the impact of rates on the market. On a national level, the market appears to be relatively unfazed by the raise in rates. It hasn’t been insubstantial. Talking to one Maui lender today, she indicated rates are up .5 to .6 percent over the lat 45 days and .35% in just the last 15 days. With rates predicted to rise further, it will be interesting to watch the market overall and the lower price points in particular. Maui residents are already struggling with affordability.
The Vacation Rental Condo Market
One of the stronger areas of the Maui market is vacation rental condos. Low inventory and strong demand is pushing prices up. Last week, I came upon an an analysis that claimed Maui is the best market for vacation rental investments in 2022. I have to say, I question that analysis. There is no doubt Maui is a desirable place to own a vacation rental condo, but that isn’t based on rental returns. It seems if anything that the vacation rental market is doing well in spite of rental returns. While rental rates are going up, they aren’t quite keeping up with appreciation. Buyers looking at proformas for vacation rental condos are finding mostly 2-3% CAP rates. It seems like more buyers are looking at their condos as use assets where income helps to defer a portion of the costs.
Last Day for Hoku’ula Lottery Registration
Tomorrow is the last day to register for the Hoku’ula market rate housing lottery . This Upcountry subdivision will bring a significant amount of new inventory to market over the next year. There are already 98 workforce housing homes under contract with 98 market units coming. The price point for the homes available range from $1,285,000 to $1,650,000. The neighborhood offers good views, new construction, and about as convenient an Upcountry location as you could find.
Contact The Maui Real Estate Team
We hope this first edition of the Maui Market Musings offer some insight into current conditions. Contact The Maui Real Estate Team if there are any subjects you want us to touch on or if you need assistance. We look forward to being of service.
Maui Real Estate Blog
August 2021 Haiku Real Estate Market Update
This is the third installment of our summer community real estate market updates. Today’s post focuses on the North Shore community of Haiku. It follows recent posts on Spreckelsville and Paia and Kuau. Haiku spans a large geographic area along the north side of Haleakala. It ranges in elevation from sea level to about 1,500 feet in elevation. Located on the windward side of the island, Haiku’s landscape is more lush due to more frequent trade showers.
The area was a focal point of agriculture pre-western contact. In the more recent historical period, it was an area of plantation agriculture with both pineapple and sugar cane serving as the primary crops. The agricultural legacy is evident in the zoning. The bulk of the properties in the area are zoned agricultural. Most agricultural lots include 2 or more acres. Acreage is one of the biggest appeals to this area of Maui. There is still smaller scale farming in the area. Many homeowners have orchards and/or gardens. Other draws to Haiku include the area’s natural beauty, access to nearby water sports and proximity to a variety of schools.
Notable Numbers from This Year’s Haiku Home Sales
- Maui Realtors reported 66 sales in Haiku for the year to date as of August 17th. That is a 27% increase over the same period of 2020.
- The median sales price of the homes sold is $1,177,500. The average sales price is $1,440,507. This is also up significantly over the same period of last year when the median and average were $870,000 and $1,104,884 respectively.
- The lowest priced property sale for the year to date closed for $600,000. This 977 square foot house and cottage on a 12,284 square foot lot sold prior to going on the MLS. I venture that it likely would have sold above this price if it went to market.
- The highest priced sale closed for $6,650,000. That property includes a 4,500 square foot home with a pool and a large barn on 38.91 acres.
- That sale is one of nine properties to close over $2,000,000 and one of four that closed over $3,000,000.
- There are currently 16 homes under contract in Haiku with 4 of those listed for more than $2,000,000.
Thoughts on the Haiku Market for the Year to Date
Like the rest of the island, the Haiku area is seeing strong demand and limited supply. This is reflected in both the higher than average sales activity, and the increase in prices. Sales volume for this period is higher than not just the same period of 2020, but also the same period of any of the last five years. Both median and average price increased significantly over 2020. The increase in average price reflects not just rising prices, but also additional activity in the higher price points of the Haiku market. This is part of a two year trend for higher priced sales in Haiku. There are 21 homes that closed for $2,000,000 or more in Haiku since January 1, 2020. That is 27% of the sales for $2,000,000 or more in the last 20 years!
The Outlook for Haiku Homes for the Rest of 2021
While buyer demand remains strong, inventory is incredibly limited in Haiku. As of this moment, there are only 17 active home listings. That’s a fraction of what we typically see in Haiku. Inventory is particularly scarce below $1,000,000 with only 4 active listings. By comparison, there are 7 listings over $2,000,000. While some markets on the continent are seeing inventory rebound, we aren’t seeing it in Haiku. Sales volume for the rest of the year will be hard pressed to keep pace with the first seven plus months of 2021 unless more listings come to market. It will also likely mean continued upward pricing pressure.
The Haiku Land Market
Haiku sees more land sales than most parts of the island. It typically has more land inventory available. Haiku Town Acres and Kauhikoa Farms are two newer subdivisions created in the last five years that drove recent activity. The rest of the inventory consists of resales from older subdivisions or lots created from smaller scale subdivisions. CPR lots are increasingly common.
Notable numbers from the Haiku Land Sales in 2021
- Maui Realtors reported 29 lots sold for the year as of August 17th. The median price of the lots sold is $585,000. The average price of the lots sold is $813,190.
- The highest price lot closed for $2,499,000. It is a 20.5 acre oceanfront lot located to the East of the Peahi surf break.
- The 20.5 acre oceanfront parcel was the only sale over $2,000,000, but it was one of eight sales for $1,000,000 or more.
- The eight sales equals the total for all of 2020. The last two years are now tied for the busiest year ever for $1,000,000 or more land sales in Haiku.
Haiku Land Sale Overview and Outlook
Strong demand helped push pricing up in the Haiku land market in 2021. As the overall real estate market on Maui hit another gear in the first quarter of 2021, buyers quickly snatched up much of the remaining land inventory in Haiku. I remember clearly in January and February when a number of the properties that sat on the market in the fall went under contract in close succession. Replacement inventory has yet to come to market. As it stands, there are only 9 active land listings in Haiku. The lowest priced listing is currently $1,300,00! When lower priced lots come on the market, it feels more like an auction than a conventional real estate listing.
Barring a substantive increase in inventory, I would surmise that we will see really limited sales volume and continued price appreciation. That said, land pricing does not operate in a vacuum. Construction costs are high due to increased material and labor costs. If the cost to build plus the cost of land far exceeds the price of existing homes, buyers won’t support the higher land prices. Land buyers should evaluate potential construction costs and create an overall budget prior to hopping into a frothy land market.
Contact The Maui Real Estate Team
The Maui Real Estate Team keeps close tabs on the Haiku market. A number of our office’s agent call the community home. Contact The Maui Real Estate Team if you are looking for property in Haiku. We would welcome the chance to learn more about your real estate interests and needs. You can view active Haiku home listings and Haiku land listings on MauiRealEstate.com.
Maui Real Estate Blog
Need a Place to Play Pickleball on Maui?
Pickleball is one of the fastest growing sports in the United States. The popularity of the sport extends to Maui. A recent Maui News article highlighted the challenges players on island are experiencing finding court space. Are you a pickleball player on Maui feeling deprived of court time? What is we told you that you could play pickleball any time you want?
How you ask? Let me introduce you to North Shore Paradise. Our stunning listing in Haiku comes with its own Pickelball court. That’s right, no signing up for court times. Just pick your paddle and ball, grab a friend and head out to the backyard.
More than Just Pickleball
If you worked up a sweat on the court, you can cool off in the forty foot, saltwater pool with jumping rock, slide and spa.
Want to exercise your mind as well as your body? How about a game of outdoor chess? Set among beautiful landscaping, this is a stunning setting for a battle of wits.
If you haven’t realized it yet, North Shore Paradise has a lot to offer above and beyond your own backyard Pickleball court. This property is all about fun.
A Beautifully Remodeled Home
That said, the four bedroom, three bath home itself is beautiful. The sellers completely renovated the home in 2016. A partial list of remodel improvements include an upgraded the kitchen, a beautiful new 5,500 piece mosaic, revamped fans and lighting, a new roof and all kinds of custom woodwork and built-ins. The sellers also updated two bedroom/one bathroom ohana in 2016.
Find out More About this Pickelball Property
This perfect pickleball property is offered for $2,250,000. Take a 3D tour of the home and the cottage. Check out the North Shore Paradise website for more photos and information. Interested in this beautiful home with your personal pickleball court? Contact The Maui Real Estate Team with questions or to arrange a showing.
Published September 29, 2019
Maui Real Estate Blog
52 Laenani, A Distinguished Haiku Home
What makes a home distinguished? Is it the location? Is it the architecture and design? What about the quality of the build? Is it a combination of all of the above? Our new listing in Haiku hits it out of the park based on all three criteria. Built in 2017, 52 Laenani is an extremely well built home, with impressive attributes, a very well thought out floor plan and a beautiful setting at the edge of Maliko Gulch.
The Beauty of Maliko Gulch
About five years ago, I helped the sellers in their search for an ideal Haiku or Upcountry Property. We looked at another home in the Haiku Mauka subdivision. They liked the home, but it wasn’t quite the one. However, what really captivated the sellers about the property was the setting on Maliko Gulch. Its taken a lot of time and a steady flow of water to carve this lush, deep and beautiful gulch. Homes on this side of the gulch also tend to offer great vistas looking towards the West Maui Mountains, the Pacific Ocean and the East end of Molokai. Summer sunsets are often dramatic and colorful. When my buyers found out that one of the two lots in the subdivision that had not been developed was coming to market, they pounced before it hit the MLS.
A Well Designed Home
With a beautiful home site procured, the sellers went about the process of designing and building a residence equal to its setting. It all starts with the floor plan. I have been in a lot of homes with beautiful finishing on this island. That said, in a number of the homes the floor plan fell far short of the finish. The architect sized the rooms wrong, space was wasted or the flow was all wrong.
The floor plan of this home just feels good. Walk in the front door and you enter a large and open living, dining and kitchen area. The space feels that much bigger with ceilings heights that top out at 16 feet. Large sliding glass doors bring in light and open up to a spacious covered lanai that runs the entire length of the home.
The kitchen offers a clean design with plenty of space. An oversized island adds room for people to socialize during meal prep or a place to dine for less formal meals.
The central living area separates the master bedroom from the second and third bedrooms. The master itself is a generous space with high ceilings and sliding glass doors that run along the lanai. It has a large walk in closet and a big bathroom. The bathroom includes a double vanity, a free standing tub and walk in shower. A second shower is located outside off the master bath. With complete privacy from your neighbors, it is a great place to rinse off with a view or to wash off the sand after time at the beach.
Other notable features of the floor plan include a billiards and media room off the living area and an office off the living room. There is a separate laundry room with a utility sink. The garage is oversized with over 800 square feet of space. That means room for the cars and plenty of room for all of your other toys.
Quality Materials and Custom Finishes
The sellers made good choices when picking materials inside and outside the home. The exterior is stucco and the roof is standing seam metal. Both will weather well in the climate of windward Maui.
Flooring in the home includes durable porcelain tile and dark strand bamboo. The cabinetry in the kitchen is natural finished cherry wood. Counter tops are black granite. A custom acacia wood vanity is in the powder room. There is another custom, acacia wood, surfboard desk top in the office. This is just a partial list of the quality materials evident throughout the home.
With the climate on Maui, quality outdoor spaces are imperative. As mentioned before, this home has a covered lanai that runs the length of the exterior of the home. It is well oriented to take in views of the gulch, the ocean and the West Maui Mountains. The orientation also takes you out of the teeth of the trade winds while still allowing breezes along the porch. The overhang on the lanai is more than sufficient to shelter you from a passing trade shower.
The property itself is two acres. The sellers planted citrus, avocado and mango trees. Roughly an acre and a half is flat to gently slop with about a half acre located in steeper gulch. Gated access and perimeter landscaping provide privacy from neighbors.
We talked about the geography of the land already. It is ultimately what prompted the sellers to buy and build. The property’s location on the North Shore is another selling point. The house is five minutes from Haiku Town Center. There you will find fitness centers, a yoga studio, a small grocery store and some great restaurants including Nuka, my favorite sushi spot on the island. Makawao Town is about eight minutes away. Paia Town and its many restaurants and amenities are a little over 15 minutes from the front gate. There are a number of good public and private schools within 15 minutes drive from the property.
The Haiku Mauka neighborhood is great for walking with limited traffic. Fourth Division Marine Park (Giggle Hill) is just minutes stroll out the front gage of the home.
Find Out More About 52 Laenani
The asking price for 52 Laenani is $2,090,000. This property sold in February of 2020! Contact the Maui Real Estate Team for assistance with other properties in Haiku. You can also search our site for other listings in Haiku Mauka.