Maui Real Estate Blog
Kapalua September 2022 Market Update
By some margin, 2021 was the busiest year ever for transaction volume at the Kapalua Resort. Now that we are two-thirds of the way through 2022, we thought it might be a good time to check on market activity in this resort community located on Maui’s northwest coastline. This update looks at sales volume, pricing and more. It also looks at the outlook for the rest of the year and a slightly more long range outlook as the market slowly transitions back to “normal”.
Kapalua Home Market Numbers
The numbers below represent notable numbers for year to date home sales activity in Kapalua through September 5th, 2022.
- Maui Realtors reported 12 home sales over the last eight plus months. That is 50% of the 24 sales reported during the same period of 2021, and 25% below the 16 sales during the same period of 2019.
- Limited inventory played a pretty big role in the decreased sales volume compared to last year. While reduced demand may also be a factor, that is harder to show via the statistics.
- Two out of the twelve sales closed for over asking price. An additional four sales closed for full price meaning 50% of the transactions closed for asking price or higher. It is striking that only one of the 24 homes sold in the first eight months of 2021 sold for over asking price and only 3 more sales closed for asking price or above. Back in 2019, none of the year to date sales sold for full price let alone asking price.
- Of the twelve transactions, Realtors reported that seven of the buyers paid cash.
- The median price of the homes sold in Kapalua this year is $5,025,000. That is 25.31% higher than median of $4,010,000 for homes sold during the same period of 2021. It is 105% higher than the median sales price of $2,450,000 during the same period of 2019.
- The average price of the homes sold in Kapalua this year is $5,300,000. That compares to $4,886,354 and $2,364,000 during the same periods of 2021 and 2019 respectively. That means this year’s average is 8.47% and 124.2% higher than 2021 and 2019 respectively.
- The lowest priced home to sell for the year to date in Kapalua closed for $2,750,000. The 3 bedroom, 3.5 bathroom home in Pineapple Hill with 3,670 square feet of living space is located on a 10,703 square foot lot.
- The highest price sale for the year to date closed in August. The Pineapple Hill home has 6 bedrooms, 6.5 bathrooms and 7,784 square feet of living space on just under a half acre of land.
- Pineapple Hill tops the list for busiest subdivision for sales activity this year. Five homes closed in Pineapple Hill with two additional homes closing in Pineapple Hill Estates. Three homes closed in Plantation Estates and two homes closed in Mahana Estates. There’s been no inventory and no sales in Kapalua Place. There is one pending sale in Honolua Ridge.
Kapalua Condo Market Numbers
The numbers below are the most notable from Kapalua Condo sales through September 5th. It includes only condos in the complexes that are formerly located within the Kapalua resort and does not include condo developments that border Kapalua.
- Maui Realtors reported 51 condos sold for the year to date. That is 51.89% below the 106 sales reported through the same period of 2021. It is 15.9% more than the 44 closes during the same period of 2019.
- Again, it is pretty clear that constrained inventory played a role in the substantial decrease in sales compared to last year. It’s difficult to estimate the role decreased demand played in the lower number of sales. That said, it is worth pointing out that we had more sales this year with far less inventory than we did in 2019.
- Of the 51 sales, 12 or 23.53% sold for over asking price and 28 or 54.9% sold for asking price or above. By comparison, 3.77% and 30.19% of all 2021 sales over the same period sold for over asking price and at or above asking price respectively. Over the same period of 2019, 4.55% of all condos sold over asking with 34.09% selling for asking price or above.
- Of the 51 condos that sold thus far this year, Realtors reported that 24 out of 51 or 47.05% were cash transactions.
- The median price of the condos sold for the year to date is $1,450,000. Over the same period last year, the median was $1,145,000. That’s a 26.64% difference. The median during the same period of 2019 was $917,500. That is a 58% difference.
- The average price of condos sold in Kapalua through September 5th is $2,438,421. During the same period of 2021, the average price was 29.07% lower at $1,889,224. The difference in average between 2022 and the same period of 2019 is 15.50%. During that period, the average was $2,111,034.
- The lowest priced condo sale thus far this year in Kapalua closed for $940,000. That price bought the new owner a 1 bedroom, 2 bath with 972 square feet of living space in Kapalua Golf Villas.
- That was one of just three condo sales below $1,000,000!
- Kapalua’s highest condo sale for the year to date closed for $8,000,000 at Montage Kapalua Bay. That unit includes 3 bedrooms, 3.5 bathrooms and 2,904 square feet of living space.
- Kapalua Golf Villas was the busiest condo complex for transactions with 17 total sales. Montage and Kapalua Bay Villas came next with 9 sales each.
Outlook for the Rest of The Year in Kapalua
It’s time to get out the old crystal ball to see what we might expect in terms of sales activity in Kapalua for the rest of the year. Ok, ok maybe we will skip the crystal ball and try to use some other metrics that might give us some sense of market activity. When trying to gauge current market conditions, I like to look at demand for new listings and inventory.
Last month, five new condo listings came to market and one home came to market. Of the five condo listings, two were under contract in less than 10 days. That would appear to suggest that there is still some demand in the condo market. While overall demand on island might be feeling a crunch from interest rates, Kapalua is less likely to be rate sensitive. Keep in mind that just under 60% of this year’s home sales and just under 50% of this year’s condo sales in Kapalua were cash transactions.
The current inventory of listings remains limited. There are only 11 active condo listings in Kapalua and 4 pending sales as of September 5th. When you break it down by condo complex. There are no active listings in the Ironwoods or Coconut Grove. Both Kapalua Ridge and Kapalua Golf Villas have one active listing each and the Bay Villas has two listings. Only the Ritz Carlton Residences with three listings and Montage with four listings have any significant depth of inventory. On the home front, there are just five active home listings with one pending home sale.
One last factor to consider is seasonality. The charts below shows Kapalua home and condo pending sales by month in 2022, 2021, 2019 and 2018. In all of those years, the last four months of the year tend to see fewer properties going under contract.
Based on the inventory, demand and past seasonality, I would expect that sales activity for the rest of the year will be quieter than the first eight months. That said, I would venture there should be some demand for the limited inventory particularly in the the lower price points of the condo market.
Longer Term Kapalua Outlook
I mentioned at the start of the Kapalua discussion, that Kapalua was one of the markets that saw the greatest increases in demand over the last couple of years. That comes after a decade where Kapalua saw lesser demand than other resort markets. While Kapalua has always had its share of loyal fans, it tended to be a slower market. Days on market were longer and sales volume was lower. That started to shift a little at the end of the decade and it changed completely with Covid. As the market slowly moves toward normal, what does “normal” actually look like?
Maui Prep helped fuel part of Kapalua’s Covid period boom. The school was able to scale up enrollment to accommodate a large number of affluent families who took advantage of the work from anywhere movement. Many of those families ended up buying homes in Kapalua or other nearby areas of West Maui. The question of how much ongoing demand there will be from affluent remote workers remains something of an unknown.
I recently had the opportunity to pose the question about the future of the Kapalua market to an agent who lives and works in the community. I thought her answer offered some interesting insights. While Maui Prep came up, she also discussed the role of the Montage and the Ritz. She pointed out that the closure of the Kapalua Bay Hotel in 2006 and construction projects at the Ritz limited places to stay and the overall appeal of the area during the latter half of the 2000s. The foreclosure on the Ritz Carlton Club in 2013 didn’t help. When the Ritz Carlton Club redeveloped and rebranded as the Montage in 2014, it brought in new vacationers. Many of them developed loyalty to Kapalua and eventually became second home owners.
With those two anchor properties, the other agent thought this would provide a solid foundation for future demand in the community. For this and other reasons, she is very much a Kapalua Bull over the long term. It was an interesting answer and one I thought might be worth sharing with our readers.
Contact The Maui Real Estate Team
We will continue to provide periodic updates on the Kapalua market on this blog. If you are interested in Kapalua Properties, you can find the current inventory of Kapalua Homes for Sale and Kapalua Condos for Sale on MauiRealEstate.com. Contact The Maui Real Estate Team if you have questions on any of the listings or need assistance buying or selling a property in Kapalua.
Maui Real Estate Blog
Kapalua February 2022 Market Update
If there is any one community within Maui that epitomizes the Covid era real estate boom, it is Kapalua. This resort community on Maui’s Northwest coastline was always an appealing locale for a segment of Maui’s luxury property buyers. That said, inventory tended to be higher and days on market tended to be longer than other resort areas like Wailea and to a lesser extent Ka’anapali. With that context, the recent surge in activity in Kapalua is that much more astounding. In this post, we take a look at some of the numbers from the last 18 plus months of sales. We also give a few thoughts towards the end of the post on the market outlook for 2022.
Kapalua was one of the first luxury home markets on the island to show signs of life in the second half of 2020. The strong performance continued into 2021. The numbers below represent highlights from the 2021 market activity.
Kapalua 2021 Home Sale Notable Numbers
- Maui Realtors reported 29 homes sold within the Kapalua Resort during 2021. That is a 70% increase over 2020.
- The 29 sales is the highest ever number for a single year in Kapalua. It is worth noting that 2020 was the second strongest year ever for home sales in Kapalua.
- The median price of homes sold during 2021 is $4,135,000. The average price is $4,972,327.
- The highest priced transaction closed for $15,000,000. That was for 9 Kapalua Place. This beachfront home includes over 7,000 square feet of living space on a .7 acre parcel of land.
- That was one of three closes over $10,000,000. The other two sales included another beachfront home in the Kapalua Place subdivision and a home in Kapalua Plantation Estates.
- Pineapple Hill was the busiest subdivision for transactions with 15 closes. Plantation Estates saw the next most activity with 6 sales. They were followed by Honolua Ridge with 4 sales, the aforementioned Kapalua Place’s 2 closes and a single home sale in Mahana Estates.
Behind the Numbers
As mentioned above, Kapalua’s market surge started in the second half of 2020. Specifically, it was the last quarter of 2020 when transaction volume picked up. Nine of seventeen sales for the year closed in November and December. The upturn in market activity happened earlier than the Wailea Market, a larger resort community with typically much higher sales volumes. What was it that drove earlier buyer interest in Kapalua? Well it wasn’t any new resort amenities. The biggest driver was the proximity to one of the island’s better private schools.
Early in the pandemic, Kapalua became a Zoom town. A large number of Silicon Valley employees moved to Maui to work remotely. Initially, they came as renters. Those with families had their kids learning remotely for the last couple of months of the 19/20 school year. At the start of the 2020/21 school year, the enrollment of Maui Prep ballooned by 100 students. All of the new students came from Silicon Valley families. The school, located minutes from Kapalua, offered a draw to remote workers that a place like Wailea did not. Many of the families that started as renters began to purchase property in the fall of 2020 and that momentum continued into 2021.
It’s worth looking at the 2021 sales more closely as market conditions were not uniform throughout the year. Twenty of the twenty-nine sales in Kapalua occurred in the first six months of the year. During the first part of the year, there was still a decent supply of homes for sale. The decreased sales volume during the second half of the year can be attributed to a combination of reduced inventory, seasonality and perhaps slightly lesser demand. Though, I would put inventory at the top of that list by a good margin. Scarcity remains a driving factor going into 2022. I will comment more on that in the market outlook below.
The Kapalua Resort set a new record for condo sales in 2022. The dynamics driving the market were a little different than the home market. It was less of a case of remote workers and more a case of the Covid second home boom. The numbers below show some of the 2021 market activity followed by a few more thoughts on what drove the numbers.
Kapalua 2021 Condo Market Numbers
- Maui Realtors reported 145 sales in the Kapalua Resort during 2021. That is a 363% increase in activity over 2020.
- For additional context, the next closest year for condo sales in Kapalua is 2004. There were 87 closed transactions that year.
- The median price of the condos sold in 2021 is $1,220,000. The average price is $2,060,805.
- The highest priced transaction closed for $13,295,000. That type of cash buys you a 4,050 square foot, four bedroom, four and a half bathroom unit at the Montage Residences Kapalua Bay with stunning views. This is the highest ever sales price for a condo in Kapalua.
- The lowest priced condo sold in 2021 closed for $600,000. That sale was a 1 bedroom, 1.5 bath unit at Kapalua Golf Villas.
- Golf Villas experienced the most sales activity in the resort with 44 closes in 2021. Kapalua Bay Villas came next with 30 closed transactions followed by Kapalua Ridge with 28 closed sales and Montage with 27. On the quieter end of the spectrum, 6 sales closed in Coconut Grove, 5 closed in the Ironwoods and 5 closed at the Ritz Carlton Residences.
- 2021 was the busiest year for transaction volume on MLS records for the Ridge, Bay Villas, Golf Villas and Montage. It was the busiest year since 2003 at Coconut Grove and the busiest since 2004 at the Ironwoods.
Digging into the Condo Numbers
The Kapalua Condo market didn’t fully kick into gear until early 2021. Market activity more closely resembled the activity in other condo markets around the island. A modest uptick in activity in late 2020 followed by frenzied activity after the new year. While activity slowed a little in the second half of the year, sales volumes for Kapalua condos did not dip to the same extent as the home market. Forty-six percent of all condo sales occurred in the second half of 2021 compared to only 31% of home sales. While supply shrank as the year went on, there was still enough supply available to meet the considerable demand.
I usually don’t spend too much time discussing land sales when I provide these community level market updates. That said, the 2021 Kapalua land market can’t be ignored. The increase in transaction volume compared to 2020 was bigger than any other segment of the Kapalua market.
Notable Land Sale Numbers
- There were 60 lots sold in Kapalua during 2021. That calculates to a 750% increase in transaction volume compared to 2020!
- The 60 sales is almost 1/4 of the 247 all time sales in Kapalua reported on the MLS.
- Mahana Estates led the way with 42 closed transactions. These were new developer sales.
- Honolua Ridge saw the second most sales activity with 11 sales. Realtors reported 5 sales in Plantation Estates and 2 sales in Pineapple Hill Estates.
- The median price of lots sold is $995,000. The average price is $1,156,000.
- The highest priced sale closed for $2,600,000. The 2.7 acre lot in Plantation Estates offers beautiful views towards Honolua Bay.
- The lowest priced lot closed for $700,000 in Mahana Estates.
Looking Behind the Land Numbers
This was the year of the great Mahana Estates land rush. At the start of the pandemic, I don’t think anyone would have predicted this development would sell out by the end of 2021. Market response for was tepid the first few years the development was on the market. One lot sold in 2019 and two in 2020. There were a couple of different days in February where 3 lots closed in a day. It will be interesting to watch this development evolve and build out. There were a fair share of bulk purchases among this year’s Mahana Estates Sales. Were those land speculators, spec builders or long term holds?
The 18 non-Mahana Ridge sales are nothing to sneeze at. Those 18 sales alone are more than any one year since 2005. The lack of inventory in the home market during parts of 2021 definitely pushed some buyers to build.
2022 Market Outlook
Inventory, or lack thereof, appears to be the biggest market driver to start 2022. At the time of this post, there are only 6 active Kapalua Homes for Sale. Three additional homes are under contract. As of right now, there are only 12 active Kapalua Condo listings. It is worth noting that only 2 of the active condo listings are priced for less than $2,000,000. An additional 12 condos are currently under contract. Land is even more scarce. There is only one lot for sale in Kapalua. An additional 9 lots are under contract.
It’s safe to say that 2022 shouldn’t threaten the record sales volumes of 2021. The question is whether we will see any inventory relief during the year. Will some of the people remote working list their homes if they go back to the mainland? Will the high prices entice any sellers to come to market?
What about demand? As of right now, demand appears to be pretty strong for the limited inventory available. That is putting upward pressure on pricing. Looking forward, are there any other threats to demand looming on the horizon? There is a lot of discussion about rising interest rates and their impact on the national real estate market. There are arguments on both sides, but a lot of economists seem to be downplaying the potential impact on buyer demand due to the acute supply issues. That said, you would think the impact might be even less in Kapalua where 62% of last year’s sales were cash.
I would argue that state of the overall economy and the trajectory of the stock market are likely to have a bigger impact. Over the years, we’ve noted something of a correlation between sales volume in the resort communities and the stock market. Good years for the Dow means more financial power for discretionary purchases like second homes.
The last question is whether we might see any buyer resistance on pricing. In particular, I wonder about the impact in the vacation rental condo market. Maui has always been a place where more people bought for love than rental returns. That said, the recent price increases resulted in even smaller cap rates. Will the combination of limited returns on higher purchase prices shrink the buyer pool at all? Thus far, that doesn’t seem to be the case.
Contact The Maui Real Estate Team
Contact The Maui Real Estate team if you are considering buying or selling property in Kapalua. We would welcome the chance to discuss market conditions specific to your interests.
Maui Real Estate Blog
November 2013 Maui Real Estate Statistics
Usually our blog takes a sneak peak at the Maui Real Estate Statistics. We attempt to be the first outlet to report the numbers while also providing some additional context on what the numbers mean and what we might expect in the market. For reasons you will find out more about below, we have been a little slow to the punch as of late. We were slow getting our stats out last month and the Realtors Association of Maui (RAM) released their November stats earlier this week. That being said, our stats have a few additional numbers that aren’t reported in the RAM stats and we do provide a little more discussion regarding what is happening in the market and what we might expect as we begin our peak buyer’s season. If you are still reading, stick around for numbers and info on the Maui Real Estate market.
There were 75 homes sold on Maui in November with a median sales price of $515,000. For comparison purposes, there were 84 homes sold in November of 2012 with a median sales price of $465,000. That calculates to an 11% drop in sales volume and an 11% increase in median prices when comparing this November to last November.
There were 96 condo sales reported in November of 2013 with a median price of $350,000. Last November, there were 100 sales with a median sales price of $400,000. That means that our November sales activity was down 4% and our median price was 12.5% lower than last year.
The land sales totals for November came in at 23 sales with a median price of $547,371. In November 2012, the numbers were 22 sales with a median price of $455,000. That is a modest 4% increase in sales activity and a 19.4% increase in median price for this November compared to November of last year.
While compiling these numbers, I came across some other numbers that were worth sharing.
- The High Sales price for a single family home last month was $3,600,000 for a beautiful home across the street from Big Beach in Makena
- In addition to the home sold in Makena, there were four other homes sold for over $2,000,000. All of the sales were in either South Maui or West Maui with closes in Ka’anapali, Kihie, Launiupoko and Kapalua.
- The highest condo sales price last month was $11,395,000 for a 4 bed/5 bath villa at the New Andaz Residences. This was of the first two closes of one of the 10 units available at the new Andaz Resort in Wailea. The other sale in Andaz closed for $10,730,250.
- In addition to the Andaz transactions, there were 9 condo sales over $1,500,000 in November. One of the nine sales could arguably be classified as a residential close. Residential condos sold at Maluhia in Wailea have been frequently classified as residential sales.
- Last year, the Hoolei condos in Wailea were a big driver of luxury sales volume. The Hoolei sales volumes have decreased as all but a few of the new developer units have sold. As a result, you are seeing a more diverse list of condominium developments with big dollar sales. This month’s luxury sales included condos at Makena Surf, Wailea Beach Villas, Honua Kai, Ka’anapali Ali’i, Kapalua Ridge and Hoolei.
- The land sales numbers deserve something of an asterisk this month. Of the 23 sales, 7 were commercial lots. Our local Realtor association classifies residential and commercial land sales together. Of the remaining 16 lots, five were new developer offerings at the Peahi Hui Subdivision in Haiku
- There were only 7 bank owned (REO) closes last month compared to 22 bank owned closes last November. REO sales continue to have a limited impact on the market compared to years past.
The November sales were relatively strong this year, but not quite as strong as what we saw during a booming fall in 2012. The market has backed off from its more torrid pace. Fall activity is more in line with what we traditionally see in our market. Lower visitor numbers on island tend to result in fewer sales. We are on the cusp of the peak season for Maui Real Estate as we approach the holidays. The busiest times on Maui are during our peak visitor season from roughly Christmas through mid April. Keep in mind that the sales stats tend to lag a month behind the peak buyer activity. Typical Maui Real Estate transactions take 30-60 days to close. In the video below, I will give a few thoughts on what will shape our market during the peak buyer season and unveil the reason behind our recent lack of blogging activity.
If you are interested in buying or selling property on Maui this winter, we would welcome the chance to sit down with you to listen to your needs. Contact The Maui Real Estate Team today for a free consultation.
Maui Real Estate Blog
Kapalua Market Report
Kapalua is a beautiful resort community on the Northwest coastline of Maui. The resort boasts stunning natural beauty, renowned beaches, tropical foliage and two great golf courses. One of the courses is the site of the first PGA event of the year. The community is home to beautiful estate properties and luxury condominiums. We wanted to look at how the Kapalua market performed in 2012, how it has done in the first two months of 2013, and the outlook for the rest of the year.
There were six homes sold in Kapalua during 2012 with a median sales price of $2,880,000. The 2011 numbers were eleven sales with a median sales price of $2,850,000. That is a 45% drop in sales volume and a 1% increase in median values.
The condo market in Kapalua was more active in 2012 with fifty closes at a median sales price of $570,500. There were twenty-seven sales in 2011 with a median price of $830,000. That is a robust 85% increase in activity for 2012, while the median price dropped by 32%.
There were six land transactions in 2012 with a median sales price of $838,200. There were five land transactions in 2011 at a median sales price of $950,000. With sample sizes this small I am reticent to comment on changes in volume and median as they tend to be misconstrued.
Here are some other numbers that I found interesting about the 2012 Kapalua Real Estate Market.
- The high sale for a home in Kapalua during 2012 was $5,998,000 for a 7,645 square foot home in Plantation Estates
- All of the home sales in Kapalua were $2,000,000 or higher. Kapalua has the highest entry point of any community on Maui with the exception of Makena.
- There were four homes sold in Plantation Estates. That was the busiest year of sales ever in Plantation Estates.
- 197 Plantation Club Drive sold for $2,600,000. That was the lowest recorded sales price for a home in Plantation Estates.
- The high condo sales price in 2012 was $3,425,000 for a three bedroom, four bath beachfront condo at Kapalua Ironwoods.
- There were a total four condo sales over $1,500,000 in Kapalua in 2012.
- Kapalua Golf Villas was the complex with the most activity. There were 25 closes at Golf Villas in 2012.
- There were seven bank owned sales and five short sales that closed in Kapalua during 2012.
This was an interesting year for the Kapalua Real Estate market. The decrease in home sales follows a market trend we saw with luxury properties around the island. Sales of homes over $2,000,000 were down island wide including other resort markets like Wailea and Makena. For the sales that did close, value appeared to be a driving force among many of the sales. The six sales included the lowest priced sale in Plantation Estates and the second and third lowest sales prices for Plantation Estates. In addition to those three value closes, we also saw the second lowest sales price for a home on two acres or more in Kapalua up in Honolua Ridge.
The Kapalua condo market saw a sharp increase in activity. The focal point for the boost in activity was Kapalua Golf Villas. Last year was a year of transition for Golf Villas. It was discovered late in 2011 that the complex needed to undergo a big maintenance project. That resulted in a significant assessment for all of the owners. The assessment flushed a lot of motivated sellers on to the market. The market absorbed most of these listings in 2012 as buyers took advantage of good values in a complex that should have strong upside with all major maintenance issues in the process of being addressed. Kapalua Ridge was another complex that saw pretty good activity as buyers took advantage of a number of listings offered at good comparative values.
The Kapalua land market saw a very slight uptick in activity during 2012. That is in line with what we saw in general island wide. We did start to see a bigger uptick in land sales on other areas of the island late in 2012, but much of that activity came at lower price points where buyers were looking for alternatives due to a diminished inventory of homes. Kapalua still had a pretty healthy home inventory through much of 2012 as it does during the start of 2013.
What does 2013 have in store for the Kapalua Real Estate market? We have two months of sales / results for some perspective. On the home front, early market feedback shows that buyers are continuing to show a trend towards value purchases among the Kapalua Luxury home inventory. There has been one sale and there are two properties pending. The one sale was $1,795,000 for a home in Pineapple Hill. That is at the low end of pricing for Pineapple Hill historically. One of the pending sales is a short sale up in Honolua Ridge. Construction was abandoned on the home and the price reflects the work remaining to be completed.
In addition to the two properties currently under contract, there are an additional 32 homes actively listed in Kapalua ranging in price from $2,295,000 to $28,000,000. The depth of inventory makes for good selection for buyers. Typically, this type of inventory may create some motivated sellers. That being said, luxury home owners tend to have more staying power when it comes to waiting out the market.
It will be interesting to monitor the condo market in Kapalua during 2013. The initial market data appears to be positive with 10 sales and 4 pending sales to date. Of note, two of the sales and one of the pending were priced over $1,500,000. We are on pace to exceed the ultra luxury sales totals for 2012.
There are currently 60 condos active in Kapalua. The chart below shows the current number of active listings by complex and compares it to last year’s sales by complex.
Looking at the chart above, you can see there are some complexes with a year or less of inventory and some condos that have an abundance of inventory based on last year’s absorption rates. Last year’s busy complex was Kapalua Golf Villas due to an abundance of motivated sellers. The motivated sellers have for the most part sold their properties, and we aren’t seeing the rock bottom prices that we saw just a year ago. I would surmise that Kapalua Golf Villas will see a little less activity as prices return to normal. At the other end of the market, Kapalua Bay Villas has the biggest inventory compared to recent sales. Typically, that type of inventory could result in a few motivated sellers coming to market. That being said, many of the Bay Villas sellers might have the means and inclination to wait until market conditions improve in their favor. Bay Villas will be a place to watch the rest of the year.
A condominium complex that might have the biggest impact on the Kapalua Market isn’t event listed in the chart above. I am speaking of the Residences at Kapalua Bay, formerly known as the Ritz Carlton Residences at Kapalua Bay. The Residences opened their doors in 2009. The developers spared no expense when they built the Residences. Finishing and materials are all top notch. Unfortunately, they had a tough time recouping their investment in a slumping real estate market. The property was foreclosed upon in June of 2012. A foreclosure auction was held in December with a winning bid of $55,000,000. On January 1, Timbers Resort took over management of the property for Ritz Cartlon. On February 1, 2013, a confirmation hearing was held for the foreclosure auction. Two other parties ended up bidding on the sale driving the price up to $100,000,000. The resulting sale should take up to two months to be completed. That means it is likely that at some point later this year, condos at the Residences at Kapalua Bay will be coming back on to the market.
The Residences at Kapalua Bay will have a significant impact on the ultra luxury market place in Kapalua. They will offer significant competition to sellers at places like Coconut Grove, The Ironwoods and other luxury condominium developments around the island. The full ownership condominiums at the Resort include both three and four bedroom floor plans with roughly 3,000-4,000 square feet of living space. The amenities and the physical plant of the Residences are second to none on island. It will be interesting to see how they are received by the market now that their financial future is well defined and market conditions have improved. Contact The Maui Real Estate Team if you are interested in being kept up to date on the latest developments regarding The Residences at Kapalua Bay.
What does this all mean for Kapalua Buyers and Sellers for the rest of 2013? Buyers should find that the Kapalua market has plenty of inventory to choose from throughout this year. The only place with a scarcity of inventory is at the entry level of the Kapalua Condo market. Kapalua condo buyers will find a lot fewer rock bottom price opportunities with fewer bank owned properties coming to market, and the situation at Kapalua Golf Villas stabilized. Sellers will find that there is a fair amount of competition in the marketplace. If they want to sell quickly, they will need to price well compared to the rest of the market. Contact The Maui Real Estate Team today with questions or for assistance buying Kapalua Properties. You can search the current active inventory of Kapalua Homes for Sale and Kapalua Condos for Sale on MauiRealEstate.com.