Maui Real Estate Blog

Sneak Peek at the April 2015 Maui Real Estate Statistics

Friday was Lei Day in Hawaii. The first of May is a celebration of the Hawaiian Lei and Hawaiian culture in general. The passing of the first of the month also means that it is time to take a look back on the April Maui Real Estate Statistics. Our sneak peek at the April Maui Real Estate stats includes information on sales volumes, median prices, notable sales numbers, pending sales activity as well as a few thoughts on the stats and what they mean for buyers and sellers. These numbers were compiled on May 2nd so there may be a few sales reported after we publish this post. If there are any substantial changes, we will make note in the comments. Without further ado, here are the April numbers.

April Maui Real Estate Sales Volumes and Median Prices

This chart compares the Real Estate Sales Volumes on Maui during April 2014 and April 2015

By my count, there were 84 home sales that have been reported thus far for April of 2015 with a median sales price of $574,625. In April of 2014, there were also 84 homes sold at a median price of $583,000. That is a 1.5% decrease in median prices with volume unchanged when comparing the two Aprils.

There have been 103 condo sales reported to date for April of 2015 with a median sales price of $405,000. That is significant decrease in volume from April 2014 when there were 136 sales with a median sales price $403,500. That calculates to a 24% decrease in activity and a less than 1% increase in median price.

There were 12 land sales last month with a median price of $417,500. Last April, there were 19 sales with a median price of $510,000. That represents a 37% decrease in sales activity and an 18% decrease in median price.

Other Notable Numbers from The April Maui Real Estate Sales Activity
While compiling the numbers above, there were a few other notable numbers from the April Sales activity that are worth sharing.

  • The highest priced home sale last month was $9,750,000 for a 39.7 acre estate in Haiku. The home is known in the community as the Baldwin Estate after one of its previous owners. The property includes two parcels of land and a main house with 10 bedrooms, 10.5 bathrooms and over 9,600 square feet of living space. In addition to the main house, there are multiple outbuildings, a pool area, tennis court and sumptuously landscaped grounds. This was the highest ever sales price for a home in the community of Haiku.
  • The Baldwin House was one of five home sales over $2,000,000 in April. There were 2 sales in Ka’anapali, a sale in Wailea and a home on Keawakapu Beach in Kihei. The value of the $7,700,000 Keawakapu sale was almost exclusively in the land.
  • In addition to the sales reported above, there are rumors of a sale in the Makena area for $41,750,000. That would be a new record high for Maui. This has not been published on the MLS and the details are sketchy. We will provide updates if we learn anything new.
  • The highest priced condo transaction in April was for a 3 bed, 3.5 bath unit at Wailea Beach Villas. It closed for $6,100,000.
  • While overall condo sales were down, the market over $1,500,000 remained strong. The Wailea Beach Villas transaction was one of 9 sales over $1,500,000 in April. The other transactions included 2 at Honua Kai, 2 at Makena Surf, a Hoolei, a Montage, a Palms at Manele, and a Ka’anapali Ali’i.
  • It was notable that there were no land sales over $1,000,000 last month. The high sale was $718,291 for 4.54 acres on the ocean in the Paukukalo area of Wailuku.
  • There were 9 bank owned (REO) sales on Maui sold via Realtors last month. That is the same number as April of 2014.
  • There were 4 successful short sale transactions last month. Last April, there were 10 short sale transactions that were completed successfully.

Some Quick Thoughts on the April Sales Activity
Looking at the numbers above, this was a stinker of a month for condo sales activity. This was the slowest April for condos sales since April of 2009. It clearly wasn’t due to the top of the market. The 9 sales above $1,500,000 was higher than the 6 sales in that price range during 2014. Below, $1,500,000, there was a decrease in activity at all price points. Condo sales under $300,000 were down from last April by 27.5%. Condo sales between $300,000 and $800,000 were down from last April by 28%. Sales between $800,000 and $1,500,000 were down from last April by 24%.

I don’t have any great quantitative data that points out why these different market segments were down. My guess is that the under $300,000 market is driven in part by decreased inventory. There are fewer condos under $200,000 available and fewer vacation rental condos available under $300,000. As you get up into the next price brackets, I suspect we are feeling the impact of decreased activity from Canadian buyers. With the Canadian dollar down significantly from two years ago, we are seeing fewer Canadian buyers. We are also seeing some sellers failing to adjust to the market. Activity has been down, but there are still a number of sellers trying to push the envelope on pricing with asking prices way above recent comparable sales.

Land numbers were down even more significantly on a percentage basis than condo sales, but those numbers tend to appear more dramatic due to a small sample size. I would argue that this month’s drop is a reflection of monthly variability than any sort of substantive change in market conditions. That said, the land market on Maui remains a lot slower than it was during the last real estate boom.

It is important to note that sales are a lagging indicator. Since the average Maui Real Estate transaction takes somewhere between 30 and 60 days to close, sales activity does not speak to more current buyer demand. That is one of the reasons why we like to keep an eye on pending sales activity in a month.

Pending Maui Home Sales

This chart compares the number of properties that went under contract in April of 2014 and April of 2015 in Maui, County Hawaii.

A grim month of condo sales is partially offset by a better month of pending condo sales. March pending sales for condos were also pretty good so I would expect that we may see an uptick in condo sales for May. Land and homes also saw solid months for pending sales activity. It looks like our last month of peak season was a pretty busy one for buyers.

What Does This Mean for Buyers and Sellers?
The Maui Real Estate market remains schizophrenic. There are strong parts and there are soft parts. Buyers will find that well priced properties priced at or below the median sales price are the most competitive. Those types of properties tend to go quickly and they can attract multiple offers. Well priced properties above the median sales price may also attract heavy buyer interest. Buyers who require financing should get pre-approved prior to their search so that they can better define their budgets, and they can show financial qualifications to sellers. Sellers need to continue to look closely at market activity for their particular neighborhood, community and price point. Overpriced properties are sitting in this market. Pricing above market can cost you money in the long run. It is worth sitting down with an agent to determine a go to market strategy and price. Contact The Maui Real Estate Team today to talk to an agent to discuss your real estate needs. We look forward to being of assistance.

Pete Jalbert

Maui Real Estate Blog

December 2013 Maui Real Estate Statistics Sneak Peek

The champagne corks have long been popped and the smoke from New Year’s fireworks have cleared from the island skies. That means another month and another year in the books for the Maui Real Estate market. At the start of the New Year, we want to look back at how the market has performed of late, over the entirety of 2013 and what we might expect in 2014. This is the first of what I hope to be several posts wrapping things up on 2013. The first post will be focused on the last month of the year. My sneak peek at the December stats takes a look at sales activity to close out the year and a few other notable numbers from the last month of the year. Typically, these monthly posts will have an accompanying video commentary. I am going to forsake the video for a briefer written commentary. I will save my radio face for a separate post where I provide video commentary on the year end statistics. Without further ado, here are the December 2013 numbers.

This table compares the number of properties sold in Maui County during December of 2013 to the number sold in December of 2012.
This chart shows how Real Estate Sales Volumes for Maui County during December of 2012 clearly outpaced the number of properties sold in December of 2013.

There were 75 homes sold in Maui during December with a median price of $510,000. Last December, there were 84 homes sold at a median price of $508,000. That calculates to an 11% decrease in sales activity with a very modest increase in median price.

There were 116 condo sales reported in December at a median price of $365,000. In December of 2013, there were 142 condos sold at a median price of $376,000. That is an 18% decrease in activity and a 3% lower median than last year.

There were 22 parcels of land reported sold in December of 2013 with a median price of $370,000. There were 29 sales last December with a median price of $340,000. That is a 24% decrease in activity and a 9% increase in median price.

While compiling the numbers above, I came across the following numbers and stats that I thought were worth sharing.

  • The highest sales price for a single family home was $11,900,000 for a beachfront property on Keawakapu Beach right at the edge of Wailea. This is an older home on 8/10ths of an acre. It will likely be extensively renovated or scraped with a larger estate home built.
  • There were two other homes that sold for over $2,000,000 last month. One was located in Olinda and the other was in Kapalua. It was notable that the Kapalua property was purchased via auction.
  • The highest priced condo transaction last month was $3,900,000 for a place at Wailea Beach Villas.
  • There were 9 other condos that sold for over $1,500,000 at a variety of complexes around Maui County. There were sales at Honua Kai, Ka’anapali Ali’i and Hoolei on Maui. On Lanai, there were sales at the Terraces at Manele and the Palms at Manele.
  • There were 10 bank owned (REO) properties that sold last month. There were 20 REO sales last December.
  • There were 14 short sale transactions completed successfully last month. There were 21 short sales that closed in December.

The December 2013 sales numbers appear to have been pretty healthy. While sales activity is down from what we saw last December, I don’t necessarily see that as a sign of a weakening market. December of 2012 was well above average for sales and a reflection of a surge in market activity that started in early Fall of 2012. October and November of 2012 had more properties go under contract than any other month of 2012. This was especially noteworthy in that the fall is usually the slowest time of year for transactions. This was the start of a run of heightened buyer activity that continued through the first half of 2013. Increased buyer demand was fueled by low interest rates, improving consumer sentiment and scarce inventory. As we hit the fall of 2013, the market behaved a little more like normal. Sales activity started to slow as we entered the traditional slow season for Maui Real Estate. As we enter peak visitor season, we should start to see a steady rise in the number of properties going under contract. Sales volume is a lagging indicator so we may not see that bump in the stats until February or March.

As I mentioned at the start of this post, this is just the first of what should be a few Maui Real Estate statistics posts to start 2014. Leave us a comment if you have any questions on the December stats. If you are interested in buying or selling a property on Maui, Contact the Maui Real Estate Team to arrange a free consultation to discuss your real estate needs.

Pete Jalbert

Maui Real Estate Blog

Maui Kamaole I-207 Just Listed for Sale

The Maui Real Estate Team has a great new listing at Maui Kamaole in South Kihei. This beautiful two bedroom, two bathroom, ocean view condo has been gradually renovated over the last five years. The owners have replaced or updated the tile floors, the carpets, furnishings, the electronics, interior doors and hardware and an awning for the lanai. The bathrooms were completely remodeled in 2007. The kitchen was redone with stainless steel appliances, granite counters and beautiful cherry cabinets in 2011. The unit is being sold turnkey. All a new owner would need to bring are their clothes and a toothbrush!

Maui Kamaole rates well with both vacation renters and second home owners. The complex is low density with beautifully maintained grounds. There are two pool areas, tennis courts and barbecues available to owners and renters. Maui Kamaole is located right across from Kamaole III Beach Park and the Kihei Boat Ramp. It is within walking distance of Keawakapu Beach and a variety of shops and restaurants. All of the amenities and beaches of Wailea are less than five minutes drive from the condo.

Maui Kamaole I-207 is offered for sale by The Maui Real Estate Team for $769,000. Check out the Maui Kamaole I-207 listing page for additional information, a virtual tour and photos. This condo is easy to show. Contact The Maui Real Estate Team to arrange a viewing of this beautiful condo today!

Pete Jalbert

Maui Real Estate Blog

Unofficial December 2012 Maui Real Estate Statistics

Holiday decorations are going back in closets, the smoke from New Year’s fireworks has cleared and new calendars have been put up for the New Year. That means we are due for another installment of our Unofficial Maui Real Estate Statistics. December proved to be a very busy month for real estate sales. October and November were the busiest months of the year for properties going under contract. We saw that reflected in the higher closes this month. Here are all of the details on this month’s stats followed by some thoughts and context for the December numbers.

Maui Real Estate Sales volumes for December 2011 and December 2012
Maui Real Estate Sales Volumes for December 2011 and December 2012

There were 82 homes reported sold in December with a median sales price of $511,750. For frame of reference, the December 2011 numbers were 79 homes sold at a median sales price of $411,000. That calculates to approximately a 4% increase in volume and a 25% increase in median values between this December and last December.

I counted 140 condos sold in December with a median sales price of $377,950. Last December, Maui Realtors reported 89 sales with a median price of $304,000. That translates to a 57% bump in sales volume and a 24% increase in median prices.

I counted 26 total land sales for December in Maui County with a median sales price of $315,000. For December 2011, there were 9 sales with a median sales price of $375,000. That is a 288% increase in sales activity and an 16% decrease in median values when comparing Decembers.

Here are a few other interesting numbers that I came across while compiling the Maui sales volumes and medians.

  • There were 20 bank owned sales last month on island. Most of those transactions were home sales. In December of 2011, there were 58 bank owned sales. That is a 66% drop in bank owned activity compared to last December.
  • There were 22 short sale transactions that were completed successfully last month. There were 21 successful short sales reported in December of 2011.
  • The highest sales price for a home was $23,000,000 for a beautiful oceanfront Estate on Keawakapu Beach in Wailea. This estate home features 5 bedrooms, six full baths, two half baths and over 6,000 square feet of living space. The home was situated on .63 acres of beachfront land. This is the second highest ever sales price for a home on Maui.
  • There were a total of four luxury homes sold over $2,000,000 last month. In December of 2011, there were six homes sold over $2,000,000.
  • There were five luxury condos sold over $1,500,000 last month. Last December, there was only one condo sold over $1,500,000.
  • The land sales volume was the highest single month total in Maui County since June 2007.
  • The condo sales volume was the second highest monthly total since March 2006

Land has been the ugly step child of the Maui Real Estate market for some time now. Sales have been tepid since 2007. While there have been a handful of months when we may have seen 20+ sales during this span, that month was usually followed by a month of ten sales or less. That changed with the last two months. After reporting 22 sales in November, there were 26 sales reported this month. With shrinking home inventories, we are seeing home buyers expand the scope of their search to include raw land. This is part of what is driving what appears to be a resurgence. It will be interesting to follow the land market over the coming months to see if this level of heightened sales activity is sustained.

The condo market also experienced sales volumes that we have seldom seen since the peak market days. The only month that performed better since 2006 was April 2010. That month of high performance deserved an asterisk as there were 40 new developer closes at Honua Kai based on pre-construction contracts that were originally drafted back in 2005. The December numbers weren’t bolstered by neither the same level of new developer sales or long term contracts. This is particularly surprising as the fall season is usually a relatively weak time for condo buying activity as there are fewer visitors. It will be interesting to see what happens in the coming months during our peak buyers season. Limited inventory and/or potential economic uncertainties are the two impediments that could keep us from sustaining high levels of buyer activity.

One other thing to note with the numbers above are the shifts in median pricing. After a few years of decreasing property values, we did start to see some modest price increases particularly at the lower and middle price ranges in the market. That being said, the 24% and 25% increases in median sales price that we saw respectively in the home and condo market are not due exclusively to increases in property values. Price increases have tended to be far more modest. The biggest driver in the shift in medians are changes in the inventory. While 2011 offered healthy inventories at the lower and middle parts of the market, the inventory contracted significantly during 2012. Fewer sales at the low end combined with more activity in the middle and higher price ranges means higher median sales prices.

With the winter buyer season officially here, what do the numbers above mean for buyers and sellers? For buyers, many segments of the Maui market are proving to be competitive. With limited inventory in many different parts of the island, the conditions are in place for multiple offers and above asking sales prices when well priced properties come on the market. Buyers who require financing to assist with their purchase should take the time and effort to be pre-approved for a mortgage prior to looking at properties. A pre-approval letter may be a requirement with some sellers and/or it could differentiate you from buyers who are only pre-qualified. While inventory is limited in many parts of the market, sellers can’t be complacent. Lots of properties are going under contract, but it appears that there are quite a few transactions that are falling through. If you have the capital, address deferred maintenance. If you can, consider having a home inspection done so that you can help identify and address potential deal breakers in advance. Prices are going up in many segments of the Maui market, but over-priced properties aren’t getting a lot of attention. Look closely at recent comparable sales when determining a go-to market price. Now more than ever, professional and responsive representation is important. Contact The Maui Real Estate Team today to discuss how we may be able to work with you to achieve your real estate goals on Maui.

Stay tuned to the Maui Real Estate Blog for more year end statistics and thoughts on the Maui real estate market. We hope to publish year end stats in the coming days. We will also be taking a look at how individual Maui communities perform in the next week. We already posted on the Spreckelsville market earlier this week. Keep your eyes peeled for year end updates on Paia, Haiku, Wailea, Kaanapali, Kapalua and more.

Pete Jalbert

Maui Real Estate Blog

Wailea and Makena 2011 Mid Year Real Estate Statistics

A couple of weeks back, I decided to take a more in depth look at how the real estate market performed for the first half of 2011 in a handful of specific Maui communities. I have already posted statistics for the North Shore and Upcountry markets. I had originally intended to post one last blog on how the resort communities performed. That being said, I found the abundance of data to be a little overwhelming for one post. Instead, I will be posting three blogs looking at the communities of Wailea/Makena, Kapalua and Kaanapali respectively. This first post looks at the Wailea/Makena market. It includes information on sales volumes and medians for home, condo and land sales. I also have a further breakdown of condo sales volume by complex as well as some additional information that I came across in the process of sorting through the data. I also offer some thoughts on what the statistics may mean.

There were 10 home sales in the Wailea/Makena area during the first six months of 2011 at a median price of $1,472,500. This compares to 17 sales during the first half of 2010 at a median price of $1,700,000. This translates to a 41% drop in activity when comparing sales volume this year to last year. Median prices dipped 13% from last year.

  • Eight of the ten transactions were reported as cash deals.
  • There were two short sales and one bank owned deal among the ten sales. During the first half of 2010, there were no short sale or bank owned transactions
  • The lowest priced sale was $900,000.
  • The high sale for the first six months of 2011 was $5,200,000. By comparison, the first six months of 2010 produced a high sale of $19,850,000.
  • There were no sales in Makena during the first six months of 2011. By comparison, there were six sales in the Makena area during the first six months of 2010.

There were 64 condo sales in the Wailea/Makena area during the first 6 months of 2011 at a median sales price of $1,040,000. During the first six months of 2010, there were 65 condo sales at a median price of $975,000. This represents a little less than a 2% decrease in sales volume and approximately a 7% increase in medians when comparing the first half of 2011 to the same time period in 2010.

  • The high sales price for the first six months of 2011 was $5,850,000 for a three bedroom condo at Wailea Point. By comparison, the high price for the same period of 2010 was a Maui sales record of $12,500,000 for a condo at Wailea Beach Villas.
  • The low sales price was $360,000 for a one bedroom Bank owned listing at Wailea Ekahi.
  • There were a total of seven bank owned sales and six short sales. That compares to six bank owned sales and two short sales during the same period of 2010.
  • In addition to the 64 condos sold, there was one boat garage sale reported among the Wailea condo statistics. A boat garage at Wailea Point sold for $104,500.

There were 2 land sales reported in Wailea during the first half of 2011 This compares to 5 sales during the first half of 2010. While only two sales were reported, one was a big one. A beachfront lot in the Maluhia development at Wailea sold for $7,300,000. Like much of the rest of the island, land sales in the Wailea/Makena area remain limited.

Looking at the numbers above the dip in home sales sticks out the most. The Wailea market and the Makena market in particular made a big splash in the first half of 2010. There were two sales of over 17 million dollars including a new record sales price for a single family home. There were also 6 sales in Makena including four with sales prices over $5,000,000. We just didn’t see that level of activity during the first half of 2011. The majority of the ultra high end activity was occurring in Kapalua Resort and along West Maui’s Oceanfront.

Does this point to a shift in the preferences of high end buyers? Has the Wailea and Makena area lost its luster? Plain and simple, the answer is no. I am publishing these stats a month after the official midway point for the year. That gives me the advantage of an additional month to observe the market. July has been busy for the Wailea and Makena luxury home market. Shock waves reverberated through the Maui market earlier this month when an unlisted property in Makena sold for $27 million. The 1.6 acre oceanfront estate shattered the previous single family home sales record. There are two homes listed for over $7.5 million that are now under contract at Makena Place. A home listed for $16.5 million went under contract at Keawakapu Beach. There is a second unlisted property along Keawakapu Beach under contract. While its sales price is unknown, the property had been listed in the last year for $23 million. A month of additional market activity has completely changed the tenor of the Wailea and Makena luxury home market. I enjoy compiling the data for these blog posts and they provide a good snap shot of market activity. That being said, there are some dangers when you try to read into the data too much or you call something a trend when dealing with these relatively small sample sizes.

While there were some pretty big swings in home market activity, the condo market was almost a mirror of 2010 in terms of total sales volume. We saw some subtle shifts in the composition of sold properties with an increase in bank owned closes and short sales. The volume of sales at individual complexes also fluctuated. Kanani Wailea and Kai Malu saw the biggest jump in sales volume while Wailea Palms and the Palms Wailea saw the sharpest decrease in volume. I am reticent to read too much into these shifts in market activity. It may just be variability. That being said, I wouldn’t be surprised to see higher sales volumes continue at both Kanani Wailea and Kai Malu. These are both complexes that came to market near the peak. Most condos in these complexes are now valued below their original sales prices. Declines in value combined with speculative purchasing when these properties came to market have resulted in REOs and short sales. I suspect Kai Malu and Kanani Wailea may still have some REO and short sale inventory to work through.

While most of my discussion has focused on volume, it is worth discussing median prices as well. As the numbers show above, we saw condo medians increase while home medians decreased. Whether it is an individual community like Wailea/Makena or Maui in general, I am reticent to use changes in median as an accurate measure of changes in property values. With these smaller sample sizes, shifts in median can be also be attributed to shifts in where market activity is occurring. For example, greater concentrations of high end sales can raise median prices while increased sales activity among lower priced condos can pull medians down. While I lack clear quantitative evidence, I would argue that Wailea and Makena may still be seeing modest drops in value for most properties. That being said, we are also seeing very affluent buyers who are willing to pay an absolute premium for some of the extraordinary properties that are for sale in this resort community. While comparable sales may dictate the market value of some properties, other sales may be more a matter of finding the common ground between what a buyer is willing to pay vs what a seller is willing to accept.

Contact The Maui Real Estate Team if you have any questions about these stats or if you need assistance buying or selling Wailea and Makena Real Estate. You can also search the current inventory of Wailea and Makena Homes for Sale and Wailea and Makena Condos for Sale on MauiReal Estate.com.

Pete Jalbert