Maui Real Estate Blog
May 2019 Paia Real Estate Market Update
It has been a while since we checked in on the Paia Real Estate Market. Paia town on Maui’s North Shore is where The Maui Real Estate Team office is located. It is one of our office’s core markets. This town has consistently seen strong demand and limited supply. The combination creates steady upward pressure on pricing. This post looks at market activity in the community during the second half of 2018 and the first four months of 2019.
One thing to note. Our local MLS groups Paia, Spreckelsville and Kuau together. We have always thought that Spreckelsville is its own market. As a result, this post looks at Paia and Kuau only. We provided a market update on Spreckelsville in February.
The map above shows sales market activity in Paia and Kuau between July 1, 2018 and May 1, 2019. The red pins represent sales. The yellow pins represent pending sales. The green sales represent active inventory. You can click on individual pins for more details on sales.
Paia Sales Summary
- There were 11 homes and 3 condos sold during the last six months of 2018. By comparison, there were 8 homes and one condo sold in the second half of 2017.
- The median price of the homes sold in the second half of 2018 was $878,000. The median price of homes sold in the same period of 2017 was $747,000.
- During the first four months of 2019, six homes and two condos sold. During the first four months of 2018, there were eight homes sold.
- The median price of the homes sold during the first four months of 2019 is $1,079,062. The median prices for the homes sold in the first third of 2018 was $800,000.
- The high sale for the first four months of 2019 is 50 Kai Place. This home and ohana is located on a 12,166 square foot lot on the ocean side of Hana Highway. The value may have been higher to the purchaser than the general market as it provides a potential second access point to the buyer’s oceanfront property. It closed for $2,150,000.
- The high sale for the last six months of 2018 is 116 Kuau Beach place. This oceanfront property consists of two homes on a lot of approximately 16,335 square feet. It sold for $3,500,000.
- The lowest priced home to sell during the first four months of 2019 is 514 Pahi Ka Street in Skill Village. This four bedroom, two and a half bath home with 1,670 square feet of living space sold for $649,000.
- The lowest priced home to sell in the last 6 months of 2018 sold for $350,000. This home, located located behind Cafe Des Amis, was in very poor condition. It was recently renovated and went under contract for $575,000 before it went to market.
Sales Activity in Specific Paia Neighborhoods
Three sales closed in Kuau Bayview between July 1, 2018 and May 1, 2019. More accurately, all three sales closed in the second half of 2018. That is a slight uptick over the two sales that occurred over the same period between 2017 and 2018. While we haven’t seen any sales in the $900,000 plus range as we have in the previous couple of years, that is more due to the size and location of the units that have sold. This neighborhood continues to see strong buyer demand due to its location and general pride of ownership.
Sales activity has been higher in Skill Village than any other neighborhood in Paia over the last five years. Some of that is due to the size of the neighborhood. It is also due to relative affordability. It typically offers some of the lower priced homes in Paia. Four homes sold in the neighborhood between July 1, 2018 and May 1, 2019. That is a slight dip from the five homes that sold in the year prior. Sales seem to be slowing due to a limited supply of inventory. The decreased inventory is helping to push prices up further.
Kuau Plaza, the thirty unit condo in Paia, saw a fair amount of sales activity with three sales in the last half of 2018 and two sales in the first four months of 2019. There is one additional condo in Kuau Plaza that is currently under contract. Units in the building tend to sell quickly when they come on market. The fact that you can vacation rent these condos legally helps boost demand for the property. That is particularly the case with the recent additional restrictions on vacation renting single family homes on island.
Only one oceanfront home sold in Paia since July 1, 2018. That is down quite a bit from the five sales over the same period of 2017-2018. Some of that stems from lack of inventory. There are only three oceanfront homes on the market at this time. Two of those homes came to market after January first. Oceanfront homes tend to spend more time on the market.
Overall Thoughts on the Statistics and the Paia Market Outlook
Looking at all of the numbers above, the median sales price for the first four months of 2019 is the most striking. Paia broke the million dollar median barrier. The median is driven in part by an increase in values, but also due to a lack of lower priced inventory. At this point, the lowest priced sale for the year is $649,000. I would anticipate that homes priced under $700,000 will remain scarce through the year which will continue the trend of high median sales prices.
If the overall economy continues on its current trajectory, values will continue to push upward. That said, I would not be surprised to see the rate of increase moderate. Homes in Paia are becoming increasingly inaccessible for the average island resident. If prices push up much further, I surmise it will be due to off island vs. local buyers.
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Close to it All in Kuau
This charming, Hawaii Plantation Style home is located in the heart of the North Shore. The three bedroom, two bath home also has a detached garage. Some of the highlights of the home include newer appliances and a spacious deck that is ideal for entertaining or just enjoying the trade winds.
The location of this home is truly ideal for those that enjoy the North Shore lifestyle. It is within walking distance of surf spots. There are a variety of spots within a mile for SUP, surf, windsurfing, kitesurfing, foiling and more. Ho’okipa Beach Park is less than a half mile from the house. The world renowned Maliko Run for downwind paddling runs just off shore from this stretch of coastline. Paia town is less than a mile from the house. Paia offers restaurants, shopping, the best little health food store around and a number of yoga studios.
This is one unit of a CPR property. This unit includes 8,441 square feet of land.
This home is offered for $879,000. The listing agent of the property is the father of the owner. Check out the 21 Meha listing page for additional photos and details of the property. Contact The Maui Real Estate Team to arrange a showing or to ask questions about the property.
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August 2018 Paia Real Estate Market Update
As we approach the end of August, I thought this would be a good time to check in on the Paia Real Estate market. We already looked at the Spreckelsville neighborhood last week. This post will look at just Paia and Kuau. Paia has been a strong market due to high demand and constrained supplies. Hemmed in by cane fields, there have been no new subdivisions in the community since back in 2003. Over that time, Paia has continued to grow in prominence and popularity. People have sought out the North Shore town due to its proximity to North Shore wind and wave sports, natural beauty, preponderance of wellness related business and plantation town charm.
With no real growth in housing inventory and increased demand, pricing in the community has been on an upward trajectory since 2011. With limited plans for future development on the immediate horizon, the ingredients are in place for continued upward pressure on prices over the long term. This post looks at real estate activity in the community for the year to date and the outlook for the rest of 2018.
The map above shows real estate activity in Paia during 2018. The red pins represent sales while the yellow pins represent pending sales. You can click on individual pins to learn more about the individual properties. It is worth noting that the map above and the numbers below exclude the Spreckelsville neighborhood. Traditionally, the local Realtor Association lumps Spreckeslville in with Paia in our MLS.
Notable Paia Real Estate Numbers for the Year to Date
- There have been 17 homes sold as of August 18, 2018 with four homes currently under contract. Last year there were 11 homes sold over that same period of time. That is a 54% increase in sales volume.
- The median sales price for homes during this period is $615,000. The average price over this period is $1,154,610. Over the same period last year, the median price was 700K with an average price of $1,591,045. That is a 13% drop in median price and a 27% drop in average price.
- The high sales price for the year to date is $6,350,000 for a house and cottage on just under an acre of oceanfront land.
- The low sale for the year to date is $377,000 for a short sale in Skill Village. It is worth noting that the 2 bedroom, 1 bath home went under contract all the way back in February of 2017.
- There were two condos that sold at Kuau Plaza for the year to date with one more pending sale. The high sale is $375,000 for a remodeled one bedroom, one bath. This is above average activity for this small vacation rentable condo complex.
- There was one bank owned sale and two short sales among the seventeen sales in Paia this year. These are still properties being processed through the system from the last real estate downturn.
Thoughts on the Overall Activity to Date in Paia
The numbers above show a healthy bump in sales activity and a pretty sizable decrease in median and average prices compared to last year. These changes are not due to an increase in demand or a decreased value. Instead, it is a reflection of an increase in supply. For the first seven months of the year, Paia had a respite from the worst of the supply crunch. The more notable increase in supply came at the lower price points in the market. While the inventory for buyers under $650,000 remained relatively thin, it was a lot better than what was available last year. We even saw a few sales under $500,000. Unfortunately, the lowest priced inventory wasn’t that accessible to first time buyers as the condition of two of the three homes required cash buyers. The third was a home that had gone under contract all the way back in February of 2017. While Paia is a small community, it has a pretty diverse housing stock. The paragraphs below look at the sales activity in specific neighborhoods in Paia and Kuau.
Paia Halelani is a neighborhood located a few streets past the intersection of Hana Highway and Baldwin Avenue on the Mauka side of Hana Highway. It has had very little turnover in the last few years with no sales since 2015. During 2015, we saw record high sales for the neighborhood. This year, there have been two sales and both were priced under $500,000. That said, this is not a reflection of values dipping. Both homes were in poor condition requiring cash buyers.
Skill Village is located off of Baldwin Avenue about a mile above the intersection of Baldwin and Makawao Avenue. The neighborhood of modest homes sees more turnover than most parts of Paia. That said, 2017 proved to be pretty quiet year for sales with only 2 sales through Mid August. In 2018, much of the increase in Paia market activity can be attributed to a resurgence in Skill Village sales. There have been a total of 9 sales in the neighborhood this year. That is an impressive 450% increase. Skill Village also smashed its all time sales record this year with a close of $800,000. It is worth noting that this larger home was formerly owned by a building contractor who made significant upgrades to the finishing of the property.
Kuau Bayview is another neighborhood that experienced an increase in sales through the middle of August. After only two sales in all of 2017, there have been four sales this year. Three of the four sales were noteworthy. We saw the first ever $1,000,000 sale in the neighborhood, the highest sales price for a home that backs on to Hana Highway and the highest ever cost per square foot sale. It is clear that Kuau Bayview remains an in demand neighborhood for Paia buyers.
While not a neighborhood per say, I did want to look at the sales activity for Paia Oceanfront Homes. There have been two sales this year. One for a home on Nalu Place on Paia Bay. The other home was further East from downtown on Lae Place. The large oceanfront lot of just under one acre has a home and a cottage. That property has exchanged hands three times in the last ten years. The two sales to date this year equals the same number as last year through the same period of time. There is one other oceanfront home currently under contract.
Paia Outlook for the Rest of 2018
While the Paia market saw volume increase due to an increase in inventory over the last seven and a half months, the remainder of the year may see limited sales due to shrinking inventory. There are eight listings in Paia and Kuau currently with four of the eight homes under contract. While the pending sales will help to pad the year to date totals, buyers are going to find limited choices unless some additional homes come to market. You can see the current inventory of Paia Real Estate listings on MauiRealEstate.com. Contact the Maui Real Estate Team if you are thinking of buying or selling a property in Paia. We would welcome the chance to be of assistance.
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Kuau Beach House
When people move to Maui or buy a second home on island, many are seeking out a beach lifestyle. They want the surf, the sun and the sand and they want it close to home. Our new beach house listing in Kuau is a great home base if your vision of Maui is focused on the beach. Located on a quiet street with no through traffic, it is just a few minutes walk from the front door to the sand of Tavares Bay. Tavares is a great place to soak in the sun, go for a swim, or surf. The house is just a few minutes drive from world renowned Ho’okipa Beach Park and its great windsurfing, kiting and surfing. Paia town is walking distance from the home. There you will find good restaurants, one of the best little health food stores on the planet, boutiques galore and a variety of yoga studios.
The three bedroom, two and a half bath home is very well designed. The focal point of the home is the large and open great room and kitchen area. Vaulted ceilings and a wall of sliding glass doors open up to the large lanai area. The sliders allow for good ocean views from throughout the room. This room is a great space for entertaining friends and family. On one side of the living room is the master suite area. You can check the surf on the outer reefs from bed. Just off the master is a nice nook that could be used as an office, reading room, nursery space or a yoga/meditation room. The other two bedrooms are on the opposite side of the home from the master. If you want to get a better sense of the floor plan and the interior, you can take a 3d tour of the house. It is the next best thing to seeing the home in person.
The home has a photovoltaic system and a solar hot water system. This limits the home’s environmental impact and your monthly electric bill has a lighter impact on your wallet.
The home has an oversized double car port and a detached one car garage with copious amounts of storage and a bathroom. There is also a 100 square foot storage shed with electricity. If your vision of the beach lifestyle includes lots of water toys, there is plenty of room for all your surfboards, stand up paddle boards, windsurfing gear, kitesurfing gear, fishing equipment, kayaks and canoes.
The half acre lot was lovingly landscaped with a variety of native plants, garden areas and fruit trees. Edibles include but are not limited to, Julia Mangoes, Avocados, citrus and Princess lilikoi. Nice rock work and two outdoor showers are other nice exterior features of the property.
This home is a residential condominium with its own separate water meter. The only shared element is the driveway. This property is offered for sale for $2,250,000. Check out the 101 Kuau Beach Place Unit C listing page for additional photos and details. Contact the Maui Real Estate Team to arrange a showing or to discuss the property with the listing agent.
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Paia 2016 Real Estate Market Year In Review
Paia town is home base for the Maui Real Estate Team. It also happens to be one of the more in demand real estate markets on island. A bohemian vibe, Plantation town charm, access to great water sports, galleries, good restaurants and shopping have made this little town internationally renowned. We want to take a look back at how the Paia market performed in 2016 and how it might perform in 2017.
One quick note, typically the Spreckelsville neighborhood is lumped in with Paia when people talk about Paia real estate. We believe Spreckelsville is somewhat unique within Paia and opted to exclude it from this overview. We did a separate Sprecks market update at the end of 2016.
The map above shows the 2016 sales as well as the one 2017 sale that was based on a contract from 2016. You can click on individual pins on the map for additional details on the sales.
Looking back at the year in sales, there were some notable numbers that I think are worth highlighting.
- There were 31 homes sold in Paia and Kuau during 2016 with a median sales price of $600,000 and an average sales price of $1,119,216. In 2015, there were 26 home sales with a median price of $587,000 and an average price of $701,942. That is a 19% increase in volume, a 2% increase in median price and a 59% increase in average price.
- The highest priced home sale was $6,000,000 for an oceanfront estate in Kuau. The property consists of a 4 bedroom, 4.5 bathroom home with 6,258 square feet of living space and a 1 bedroom, 1 bathroom cottage with 1,050 square feet of living space on approximately 1.283 acres of land. Last year, the high sale was $2,995,000 for a single family oceanfront home on Kuau Point.
- This year’s high sale was one of three transactions to close for over $4,000,000 in Paia and Kuau during 2016. All three properties were oceanfront.
- The lowest priced home sale was $455,000 for a 3 bedroom, one bath house with 1,104 square feet of living space on a 6,791 square foot lot. This home is located in the Skill Village Neighborhood. The 2015 low sale was $345,000 for a three bedroom, one bath home with 1,080 square feet of living space on a 6,599 square foot lot.
- There were three condo sales in 2016 at Kuau Plaza. Kuau Plaza is the only condo in the Paia/Kuau area. The highest of the three sales closed for $325,000.
- There was one land sale in Paia in 2016. This oceanfront .432 acre lot closed for $2,950,000. There were no land sales in Paia in 2015.
- There were no bank owned properties or successful short sale transactions that closed in Paia during 2016.
While the numbers above give you a glimpse into market activity in Paia and Kuau as a whole, I also wanted to take a look at some of the individual areas and neighborhoods around Paia.
Kuau Bayview has been one of the strongest performing neighborhoods on the island. It was setting all time high prices before any other neighborhood on the island during this market cycle. The neighborhood holds a lot of appeal to buyers due to location, walkability, consistent pride of ownership and in some cases views. Last year was another strong year for the neighborhood. Record sales prices were set not once but three times. The current record high of $952,000 pushes Kuau Bayview pretty close to the $1,000,000 threshold. In addition to the three high sales, there were two other smaller floor plan sales. The five total sales for 2016 was up sharply from the single sale in 2015. That said, it is worth noting that sales volume in this neighborhood tends to be more of a reflection of available supply instead of demand.
North Shore Village
North Shore Village was the last new development built in Paia. It is hard to believe that it was completed 14 years ago. There were only two sales in the neighborhood in 2016, but one was quite notable. 21 Hoku sold for $750,000. That is a new record high sale by a considerable margin. It sold for 13% more on a cost per square foot basis than the other sale in the neighborhood which only closed 4 months prior. On a cost per square foot basis, it was 19% higher than the previous neighborhood high sale. It will be interesting to see if that will be the new standard or if that sale is viewed as an outlier by future buyers.
Skill Village is another neighborhood that had a record high sale in 2016. A four bedroom, three bathroom home sold for $680,000 in September. It also remains the busiest neighborhood in Paia for sales volume. This was the second straight year with 9 transactions. While the recent high sales price may suggest otherwise, Skill Village provides the most opportunity for buyers who want to get into Paia for below the island’s median sales price for homes.
While Paia has seen a strong real estate market since the start of the recovery, Paia oceanfront has been slower. There has been a lot of inventory and relatively few sales. We saw a change in dynamics during 2016. After just one sale per year in 2014 and 2015, we saw four transactions in 2016. There were three oceanfront home sales and one land sale.
2017 Market Outlook
After a strong 2016, the big question is what should we expect during 2017 in the Paia Real Estate market. There are few things that I think will drive the market.
Inventory tops the list of market drivers. Island wide, we have seen home inventory shrink. Paia is seeing a more acute decrease in active listings than most other parts of the island. There are currently only 14 active home listings in Paia and Kuau. Three homes are currently under contract. Of the active listings, only five listings are priced less than $1,000,000. The one home priced for less than $500,000 is a short sale facing foreclosure. It also happens to have four additional liens on the property. The lack of available inventory makes it hard for me to imagine that we will come close to last year’s sales volume.
Low inventory and continued demand are a dynamic that is likely to provide continued upward price pressure in the Paia market. Interest rates are something that could prove to be a counterweight to the lack of inventory. Conventional wisdom suggests that we are going to continue to see increases in rates throughout the year. If that comes to fruition, I would suspect that might limit the increase in values particularly in the bottom of the half of the market. Entry level buyers face a tough barrier with current pricing in Paia. Increases in rates will make the cost of ownership that much higher.
We may also look at recent market history for a forecast of the future. Paia has seen significant appreciation since the last downturn, but appreciation has not been linear. If I were to chart values over the last four years, it would likely look like a stair case. Strong increases in value were followed by a pause in values as the market would seemingly catch its breath. Kuau Bayview is a good example of this dynamic. That neighborhood saw a series of record high sales in 2013. The next year and most of 2015 were pretty quiet due to a lack of inventory and sales. As mentioned above, 2015 saw the neighborhood high sales mark broken three times. If the pattern continues, we might see a quieter 2017.
One segment that will be interesting to watch is the oceanfront home market. This price range tends to be less interest rate sensitive due to the higher percentage of cash transactions. The last year was the strongest year since the downturn and one of the strongest overall historically for Paia and Kuau Oceanfront. Part of that stems from sellers adjusting to the market. The high sale for the year closed well below replacement cost. There is currently one oceanfront home under contract, and sellers have continued to adjust their pricing hoping to find the market. I would anticipate the oceanfront market might remain more active particularly if sellers continue to adjust prices.
The Future of Paia Real Estate
The strength of the Paia market over the last 15 years has been a simple case of supply and demand. Demand has only increased over the years as the town has become more and more renowned. Paia has made a couple of lists for the Best Beach Towns in America. Numerous other publications have cast the spotlight on Maui’s hip beach town. For each new article, there seemed to be more buyers of Paia real estate. All the while, supply has been practically unchanged since North Shore Village was built back in 2003. The town’s growth has been limited by the surrounding cane fields. The closing of the sugar plantation in December of 2016 may mean the end of that growth barrier.
There has already been one large parcel of land sold to the West of town. A 340 acre parcel directly to the West of Paia sold for $9,900,000 in January. The agriculturally zoned land is on the Mauka (Mountain) side of Hana Highway. The land runs from the town’s parking lot and mini bypass up towards the mill and heads West towards Baldwin Beach Park. Plans for the land have not been presented to the public. The coconut wireless has suggested 16 high end agricultural lots with the potential for mixed use development along Baldwin Avenue closer to the mill. I don’t anticipate that development will happen quickly. The subdivision process can be lengthy on Maui. If any rezoning is done, that could lead to additional delays.
While we are unlikely to see changes over the next couple of years, the cane fields may no longer serve as a limitation for growth. Some of this cane land will become ranch land. Still more areas could be sold off for future development.
Buying and Selling Paia Real Estate
You can see all of the Paia Area Real Estate Listings on MauiRealEstate.com. Our office is located in the heart of town in Paia Plaza at 71 Baldwin Avenue. Our agents live in the area and have decades of experience in this market. We watch the market closely and keep our ears to the ground for properties coming up for sale. Contact The Maui Real Estate if you are interested in buying or selling in Paia.
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June 2016 Maui Real Estate Statistics
It’s almost the end of the month so I wanted to make sure I squeezed in a June stats post.This is something of an abbreviated post with more numbers and less analysis. I will give a few more thoughts on the state of the market in the July stats. Without further ado, here are the numbers.
June Real Estate Sales Volumes
There were 98 homes sold in June with a median home price of $657,000. Last June there were 101 homes sold with a median price of $650,000. That is a 3% drop in sales volume and a 1% increase in median price when comparing this June to last June.
There were 110 condos sold in June with a median price of $384,000. In June of 2015, there were 99 condos sold with a median price of $355,000. That is an 11% increase in sales volume and an 8% increase in median price.
There were 13 lots sold in June with a whopping median price of $1,200,000. Last June, there were 14 sales with a median price of $420,000. That is a 7% decrease in volume and a 285% increase in median price.
Notable numbers from the June Real Estate Sales Activity
While compiling the stats above, I came across some other notable numbers worth sharing from the June sales activity.
- The highest home sale price in June was $7,000,000. This Makena property includes almost 10 acres of land and two pole homes. It is close to Big Beach.
- That was one of 5 home sales over $2,000,000. The other sales were for properties in Kihei, Kapalua, Launiupoko (Lahaina), and Hana.
- The highest price condo to close in June is located in Wailea. The 3 bedroom, 3.5 bath condo Ho’olei in Wailea sold for $2,850,000.
- That was one of 8 condo sales in June sold for $1,500,000 or more. There was one more Ho’olei sale and two sales in Wailea Elua. There were individual sales of $1,500,000 or higher at Ka’anapali Ali’i, Maui Ka’anapali Villas, Honua Kai and Makena Surf.
- The highest priced land transaction closed for $2,950,000. This oceanfront lot in the Kuau area of Paia consists of 18,861 square feet of land.
- This was one of 7 land sales over $1,000,000 in June. That is a pretty extraordinary number. Five of these sales were in Launiupoko. They were part of the new Makila Ranch subdivision of Launiupoko. The one other sale was in Haiku.
- There were 12 bank owned sales that closed in June. That was down just a little from the 13 REO sales in June of 2015.
- There were 2 short sales that closed in June. That is down significantly from the 8 short sale transactions that closed in June of 2015.
June Pending Sales
All of the numbers discussed prior to this point were from properties that sold in June. We also wanted to take a look at the properties that went under contract with buyers in June. This will give us a little better sense of more recent market activity and demand.
June marked the second month in a row where pending home sales were down. I don’t believe this is a reflection of decreased demand as it is a reflection of limited inventory for first time home buyers. I expect this trend to continue with lower sales volumes and higher median prices due the decreased number of entry level homes available for sale. The condo market continues to follow recent trends of outperforming 2015. The land market pending sales are skewed a little by new development sales that showed 0 days on market. These were contracts that were likely written before this month.
Wrapping it all up
I don’t have a whole lot of in depth analysis to offer this month. We have seen fairly steady market demand overall with pockets of greater activity based on geography and price point around the island. As mentioned directly above, I believe the lack of lower priced home inventory will continue to impact the total numbers of homes sold. Contact The Maui Real Estate Team if you are thinking of sticking your toes into the waters of the Maui Real Estate market. We would welcome the chance to sit down and learn about your real estate needs and give our thoughts on market conditions specific to the properties that might fit your needs.