Maui Real Estate Blog
Wailea and Makena 2014 Year End Review and 2015 Outlook
After looking at the North Shore communities of Paia and Spreckelsville, we decided to head to South Maui for a look at the Wailea and Makena Real Estate markets. This is an overview of how this market performed in 2014 and what we may expect in 2015. Wailea is Maui’s most renowned resort community thanks in part to its beautiful beaches, three golf courses and luxury hotels and spas. Makena is the more understated of the two communities, but is arguably more exclusive with some of the island’s most expensive real estate. These are the notable numbers from the 2014 Wailea and Makena Real Estate Sales activity, a few thoughts on the 2014 market, followed by our thoughts on what to expect in these luxury communities during 2015.
There were 32 homes sold in Wailea and Makena in 2014 with a median price of $1,892,000. In 2013, there were 29 homes sold with a median price of $2,750,000. That is a 10% increase in activity and a 31% decrease in median price.
There were 92 condos sold in Wailea and Makena in 2014 with a median price of $1,021,250. In 2013, there were 122 condos sold at a median price of $1,105,000. That is approximately a 25% drop in volume and an 8% drop in median price.
There were 7 land transactions in Wailea and Makena in 2014 with a median price of $1,550,000. There were 12 land sales in 2013 at a median price of $1,150,000. This is a 42% drop in sales activity and a 35% increase in median.
Notable Numbers from the 2014 Wailea and Makena Real Estate Market
While compiling the numbers above, I came across a few other numbers that were worth sharing.
- Of the 32 homes sold, 7 were in Makena.
- The high sale price for a home was $9,300,000 for an Oceanfront home in One Makena Place. This is the second year in a row that the highest priced sale was located in this gated enclave.
- The Makena Place transaction was one of 15 sales over $2,000,000 and 6 sales over $5,000,000 that closed during 2014. In 2013, there were 14 sales over $2,000,000 and 7 sales over $5,000,000.
- There was one sale under $1,000,000 in all of Wailea and Makena during 2014. The Wailea Kai home with three bedrooms, three baths and 1,766 square feet of living space sold for $890,000.
- Wailea Fairway Estates was the subdivision in Wailea with the most sales activity with 6 closes in 2014.
- The highest priced condo sold in Wailea and Makena during 2014 was one of the Villas at the Andaz Residences. This 3 bedroom, 4 bath condominium sold for $5,495,000.
- The Andaz Condo was one of 26 condos that sold for $1,500,000 or more during 2014. There were 36 condo sales over $1,500,000 in 2013.
- Grand Champions was the condo complex with the highest number of sales in 2014 with 12 total sales.
- Only 2 of the condos sold were in Makena. Both of the condos that closed were at Na Hale O Makena.
- There were 5 condo sales under $500,000 in 2014. In 2013, there were 2 condo sales under $500,000.
- There were 5 REO or bank owned properties that closed in Wailea during 2014. That was the same as the 2013 REO sales totals for the area.
Thoughts on The Wailea and Makena Real Estate Market During 2014
There are a few things worth discussing from the 2014 Wailea and Makena Sales numbers. The dip in condo sales is certainly noteworthy. There was a decrease in condo sales island wide, but the 25% drop in Wailea outpaced the 11% drop throughout Maui County. It is especially interesting considering the fact that condos sales over $1,500,000 were up 9% around the island. There are no obvious reasons for the decrease in activity that jump out at me. With that in mind, I broke down the sales further to see if any plausible explanations appeared.
The first thought that came to mind was that there may have been a decrease in activity at the lower end of the market due to a contraction of inventory. That was something we were seeing in other geographic areas around the island. Looking at condo sales under $1,000,000 in Wailea, there was a 25% drop in total sales compared to 2013. However, when you look at condos sold between $1,000,000 and $1,999,000, there was a 38% drop in activity compared to the previous year. When you look at condos priced over $2,000,000, there was a 20% drop in activity compared to 2013. While it is possible the dip in activity below $1,000,000 may still be related to the contraction of inventory, what would explain the drop in activity in other parts of the market? It can’t claim to have definitive answers, but I have a couple of thoughts.
The dip in buyer activity in the $1,000,000 to $1,999,999 range may be a case of buyers deferring their purchase. There are a few different condo project that are expected to come to market in the Wailea market soon. Keala O Wailea and Makali’i at Wailea were both supposed to start pre-construction sales during the second half of 2014. Delays have pushed the initial sales sometime into 2015. There may be some buyers who opted to wait with the hopes of purchasing in one of the new developments verses purchasing at existing complexes like Kai Malu.
While the drop in sales was not as pronounced above $2,000,000, the dip was surprising nonetheless. There are a couple of factors at play that may have curtailed high end sales. Again, there may be competition from new developments. Makali’i may be causing some buyers to defer their purchase. At even higher price points, the Makena Golf and Beach Club may be causing some buyers to defer their purchases. The other factor at play is the draw of Montage in Kapalua. Traditionally, Wailea Buyers have been Wailea Buyers and Kapalua Buyers have been Kapalua Buyers. Even though they are both high end resorts on Maui, they tend to draw their own distinct clientele due to the unique personality of the resorts. When you look at the sales that have occurred at Montage, you are seeing quite a few buyers represented by Wailea area Realtors. It would appear that Montage is a property that has appeal to some traditional Wailea buyers.
The Wailea and Makena home market did not experience the same dip in activity as the condo market with sales exceeding 2013 totals. The dip in median home price does not reflect a decrease in values. It points to a shift in market activity with fewer high end sales and a few more homes sold in the $1,000,000-$2,000,000 range compared to 2013.
Activity in the the Wailea and Makena land market reflected the Maui Land market overall which saw a decrease in sales during 2014. The lack of sales wasn’t for lack of inventory. It is a question of where that inventory is positioned in the market. There was a lack of lower priced lots for sale. It also appears that the Ridge at Wailea, Wailea’s newest land development, may be priced above what the market is willing to support. There has only been one sale in the development since it came to market almost a year ago.
Wailea and Makena 2015 Real Estate Market Outlook
In our 2014 outlook, we anticipated that the Wailea and Makena Markets would be heavily impacted by the influence of new condo developments such as Makali’i at Wailea and Keala O Wailea. While some buyers may have deferred their purchases waiting for new developments scheduled to market, none of the new developments actually came up for sale. While we still don’t have definitive go to market dates for those two projects, the Makena Golf and Beach Club is starting to come on the market. This new development should have a big impact on the Maui Luxury market.
The Discovery Land Company’s Makena Golf and Beach Club is a significant new development. The area was in the initial stages of development during the last real estate boom only for the property to go into foreclosure during the downturn. The Wailea Beach and Golf Resort hotel, two golf courses and a total of 1,800 acres of land were purchased by consortium of AREA Property Partners, Trinity Investments and Stanford Carr Development LLC. The ownership group has chosen Discovery Land Company to spearhead a major redevelopment of the area that will occur in phases. Malauaka Estates is the first part of the development to hit the market. Maluaka Estates consists of eight oceanfront home sites with price tags ranging from $9 to $12 Million. Two of the Eight lots that hit the Maui Multiple Listings Service in the last month, and both are already under contract.
The existing Makena Beach and Golf Resort Hotel is being converted from a 310 room hotel into the Makai Residences. The Makai Residences will include 50 private residences ranging in size from 2,500 feet to 5,600 feet. Prices will range from roughly $6-$20 million range. The highest priced units will be far and away the highest priced condos sold to date on Maui.
In addition to the Makai Residences and Maluaka Estates, this phase of the Makena Golf and Beach Club will include the Kula Villas, Spa Hales and the Beach Cottages. The nine Beach Cottages will have 4 bedrooms, 4.5 baths and roughly 3,400 square feet of living space. Prices are anticipated to range from $9.5-$12 million. The 12 Kula Villas will be 3 or 4 bedrooms with sizes ranging from 2,950 to 3,900 square feet. Pricing is as of yet to be determined. The 5 Spa Hales are the smallest offerings in the resort to date. They will be two bedrooms and are likely to have the lowest entry point into the first phase of the Makena Golf and Beach Club.
Discovery also plans to create a a small village with a general store, restaurants, post office, retail space and a resort hotel. All residents will also be members of the Beach Club and have access to a variety of resort amenities.
The Makena Golf and Beach Club will be nothing short of the most significant new luxury development on the island since the creation of the Wailea and Kapalua Resorts. By all indications, the entry level price points will be significantly higher than either of those developments. It is tough to say what the impact will be on the rest of the Wailea and Makena market. The high price points will limit the impact on the lower priced properties in Wailea, while I suspect it may draw some buyers who would have otherwise been looking at some of the existing ultra luxury homes and condos within Wailea. This development also has the potential to attract buyers from some of the ultra high end resort communities on neighboring islands such as Kuki’o on the Big Island.
While we have spoken about the supply side of the market for 2015, we haven’t talked too much about demand. As it stands it appears that current economic conditions should favor a strong year for sales in Wailea and Makena. We may see a little less demand out of Canadian buyers due to the decrease in value of the Canadian Dollar.
You can check out the current inventory of Wailea and Makena Homes for Sale and Makena and Wailea Condos for Sale on MauiRealEstate.com You can also contact The Maui Real Estate Team if you are interested in buying or selling property in Wailea or Makena. .
Maui Real Estate Blog
The Numbers-A Rundown on the 2014 Maui Real Estate Statistics
Today’s blog is a look at the numbers for the 2014 Maui Real Estate Market. We give you the total sales volumes and the medians by property types. We also delve a little deeper looking at notable sales, communities that saw more activity and other noteworthy numbers from the past year.
There were 941 homes sold in Maui during 2014 with a median sales price of $570,000. In 2013, there were 983 homes sold with a median price of $530,000. That is roughly a 4% drop in volume and roughly an 8% increase in median price.
There were 1,197 condos sold in Maui County during 2014 at a median price of $414,750. By comparison, there were 1,339 condos sold in Maui during 2013 with a median sales price of $374,000. That is an 11% drop in volume and an 11% increase in median price.
Maui Realtors reported 166 lots sold in Maui County during 2014 with a median price of $520,000. Last year, there were 219 lots sold at a median price of $399,000. That is a 24% drop in volume and a 33% increase in median price.
There are other notable numbers that are worth sharing from the 2014 Maui Real Estate Sales. Here are some of the highlights.
- The highest priced home sale this year was $9,300,000 for an oceanfront estate at Makena Place. This beautiful home has four beds, four and a half baths and over 4,000 square feet of living space.
- That was one of 61 homes sold over $2,000,000 in 2014 and one of 15 sales over $5,000,000. In 2013, there were 47 sales over $2,000,000 with 12 of those sales priced over $5,000,000. That is an increase of almost 30% on homes over $2,000,000 and 25% for homes over $5,000,000.
- The Wailea and Makena area was the busiest market for high end sales with 14 closes over $2,000,000.
- On the other end of the spectrum, the lowest priced transaction in 2014 was $1 for a leasehold bank owned home on Molokai. The lease for the home was set to expire in December.
- Kihei was the busiest community for home sales in all price ranges. There were 171 homes sold by Realtors in Kihei during 2014.
- The total dollar volume of homes sold was $818,163,161. In 2014, there was $773,479,738 of homes sold in Maui County. That is roughly a 6% increase in the total value of homes sold when comparing this year to last year and the highest dollar volume over the last five years.
- The 941 homes sold was the second highest annual total sales volume over the last five years behind 2013.
- The highest priced condo sale was $8,250,000 for a four bedroom, four and a half bath unit at the Montage Residences Kapalua Bay. That condo has an impressive 4,050 square feet of living space.
- That was one of 83 condos sold over $1,500,000. Of the 83 condos sold, an impressive 13 were over $4,000,000 in price. In 2013, there were 76 condos sold over $1,500,000 with 9 of those sales over $4,000,000. That is a 9% increase in condos over $1,500,000 and a 44% increase in condos over $4,000,000.
- Honua Kai saw the most high end sales activity with 27 closes over $1,500,000. It also led the way for overall sales with 73 total transactions for 2014.
- The lowest priced condo sale on Maui in 2014 was $39,500 for a two bedroom, one and a half bath condo at Harbor Lights.
- The town of Kihei saw the most condo sales activity with 428 total units sold.
- The total dollar volume of condos sold in Maui County during 2014 was $751,850,728. That is down from the $764,301,283 worth of condos sold in 2013. That is roughly a 2% decrease in dollar volume. The 2014 total was the second highest dollar volume over the last five years.
- The 1,197 condos sold in 2014 was the third highest annual total over the last five years.
- The highest priced land transaction of 2014 was for a parcel of beachfront land in Ka’anapali. The .87 acre lot sold for $6,900,000.
- That was one of 25 parcels of land sold for over $1,000,000 in 2014. In 2013, there were 28 parcels of land sold for over $1,000,000. That is an 11% decrease.
- Wailea and Makena had the most activity with five sales over $1,000,000.
- The lowest priced land sale was $35,000 for a 1/4 acre lot on Molokai.
- Ka’anapali had the most land sales activity with 27 total lots sold in 2014
- The total dollar volume for =lots sold in Maui County during 2014 was $119,330,445. That is down approximately 23% from last year’s total of $155,596,747. The 2014 total was the second highest total dollar volume of the last five years behind 2013.
- The 166 lots sold was the third highest annual total in the last five years.
- There were 115 bank owned properties that closed in 2014. That was down 5% from the 121 bank owned properties that sold in 2013.
- There were 97 successful short sale transactions completed in 2013. That is down 56% from the 220 short sale transactions that were completed in 2013. This isn’t a big surprise with the equity position of more and more sellers improving.
That’s it for the notable numbers from the 2014 Maui Real Estate market. If you missed it, you can check out our post “Four Trends That We Saw in the 2014 Maui Real Estate Market.” We still have more 2014 year end stats posts coming with additional numbers and analysis of individual condos, neighborhoods and communities from around the island. Stay tuned…
Maui Real Estate Blog
Wailea and Makena Market Report: 2013 Year in Review and 2014 Outlook
Earlier this winter, I decided to do some in depth market reviews on a handful of communities around the island. I was able to publish posts on Paia and Spreckelsville, before getting sidetracked. I have wanted to take on the resort markets of Wailea and Makena for quite some time. This is a post that has been sitting in some form of a draft for the better part of the month. A busy schedule as a Realtor and a new dad, combined with the breadth of this market has made it tough to put the finishing touches on this post. Today, I finally got over the hump.
The Wailea and Makena resort communities are home to some of the more expensive real estate on island. Homeowners are drawn by the weather, the incredible beaches, shopping, dining, resort amenities and golf courses. In this post, we wanted to compare 2013 sales to what we saw in 2012. We also want to provide a few thoughts on what you might expect for the rest of 2014 in the Wailea and Makena market. Since we are almost to the end of the first quarter of 2014, we have the advantage of being able to review some of the initial sales data for the year. Without further ado, here are the numbers for Wailea and Makena in 2013.
There were 27 homes sold in the Wailea area with a median price of $2,750,000 during 2013. There were 26 homes sold during 2012 with a median price of $1,387,500. That is roughly a 4% increase in sales volume and a 98% increase in median price.
During 2013, there were 123 condos sold in the Wailea area with a median price of $1,100,000. The 2012 numbers were 114 condos sold with a median price of $757,500. That is approximately an 8% increase in sales volume and a 45% increase in median price.
During 2013, there were 13 lots sold with a median price of $1,225,000. There were 5 lots sold during 2012 with a median price of $875,000. That is a 260% increase in sales volume and 40% increase in median price.
In addition to the numbers above, here are a few other numbers that I thought were worth sharing regarding the Wailea and Makena Real Estate market during 2013.
- Of the 27 homes sold, six were in the Makena area.
- The high sale was $9,200,000 for an oceanfront home at Makena Place.
- The Makena Place transaction was one of 14 sales over $2,0000,000. It was one of 7 sales over $5,000,000. In 2012, there were 8 sales over $2,000,000 with 3 sales over $5,000,000.
- There were only 2 homes sold for under $1,000,0000 in Wailea during 2013. That is way down from the seven sold under $1,000,000 in 2012.
- The high condo sale was $11,395,000 for a Villa at The Andaz Residences.
- The Andaz close was one of 34 condo sales over $1,500,000 in 2012. That was an increase over the 27 sold for $1,500,000 or more in 2012.
- Kai Malu and the Palms at Wailea were the condos that had the most sales activity with 23 sales and 16 sales respectively.
- Only 3 of the 123 condos sold were in Makena. There was one unit sold in Na Hale O Makena and two units at Makena Surf.
- There were only 2 condos sold in Wailea for less than $500,000 in 2013. That was down significantly from the 15 sold under $500,000 in 2012.
- The high sale for land was $10,000,000 for 159 acres across the street from the ocean in Makena.
- There were 5 bank owned sales (REO) in Wailea in 2013. That is a 50% reduction from the 10 that sold in 2012.
Looking at the Wailea and Makena sales data for 2013, the big jumps in median prices are arguably the most eye catching numbers. All too often the change in median prices can be misrepresented as a representation changes in property values. While it is safe to say there was some appreciation in Wailea, it is also pretty clear we didn’t see 98% increases in home values, 45% increases in condo values and 40% increases in land values. The big bumps in median come from a decrease in sales activity at the low end of the market and an increase in ultra luxury sales.
The inventory of homes under $1,000,000 and condos under $500,000 decreased sharply in 2013. Buyers searching for lower priced opportunities had options in places like Wailea Fairway Villas and Grand Champions. In 2013, inventory in both of those complexes decreased and prices increased. That pushed prices on all but two sales in those complexes above $500,000. The same trend was evident with Wailea Homes. In 2012, there were quite a few opportunities to get into the market below $1,000,000 in neighborhoods like Wailea Kai, Wailea Pualani and Wailea Kialoa. Those opportunities were far more limited in 2013 with only 2 home sales below $1,000,000.
While there were fewer bargain hunting opportunities, more buyers were willing to dish out a premium for Wailea and Makena Properties. There was a 26% increase in the number of condos sold over $1,500,000 and a 75% increase in the number of homes sold over $2,000,0000. This was part of an island wide increase in luxury sales activity. As we have postulated in other statistics posts on our blog, big years on the stock market tend to make for big years for luxury real estate sales on Maui.
Being that we are almost done with the first quarter, there is more opportunity to comment on current real estate market dynamics in Wailea and Makena. The chart below compares the number of properties sold this year as of March 17th with the number of properties sold last year through March 17th.
As you can see from the chart, the sales activity looks pretty similar to what we saw during the start of 2013. Home sales are up modestly by 2 transactions, condo sales are the same and land sales are off by 1 from last year’s pace. There were a few other things that I thought were worth sharing from year to date sales activity.
- As mentioned previously, we saw a decrease in sales under $500,000 for condos and under $1,000,000 for homes in Wailea during 2013. That trend has continued into 2014. There have been no condo sales under $500,000 and no home sales under $1,000,000 to date. There are no homes listed or pending for less than $1,000,000. There are only two pending sales under $500,000 for condos with no active listings in that price range.
- For the most part, the Wailea market is still trading for less than peak market prices. There is one exception though as Wailea Elua saw its two highest ever sales prices in the last couple of months.
- The high home sale thus far this year was $9,300,000 for an oceanfront home in Makena Place. As of March 17th, that was one of 4 home sales to date this year over $2,000,000 in Wailea and Makena.
- The high condo sale thus far this year is $4,450,000 at Wailea Point. As of March 17th, that was one of 9 condo sales over $1,500,000 in Wailea and Makena for the year to date.
What can we expect for the rest of the year in Wailea and Makena? Demand thus far appears to be close to what we saw last year. I would anticipate that to continue if the stock market and overall economy stay the course. We have seen a decrease in Canadian luxury home buyers with the Canadian Dollar off 10% from last year. That has the potential to decrease sales volume. With the exception of lower priced homes and condos, there appears to be a pretty healthy inventory for buyers to choose from. There is over a year of active inventory for homes and land. There is just under a year of active inventory for condos, but that inventory is likely to increase. New developments are likely to have some of the biggest impact on the market. We have seen two new development go to market thus far, with at least one more and possibly three more coming to market before the end of 2014.
The first new development to hit the market was small in listings and big in price tag. Makena Sunset will consist of four condominium homes located directly across the street from Maluaka Beach. The homes will be 4 bedrooms and 4 bathrooms with approximately 4,200 square feet of living space. There will also be an additional 1,400 square feet of lanai space. Each residence has its own private pool. There is a laundry list of additional amenities offered with each of these spectacular properties. One of the four listings is under contract. The remaining three properties are offered for $10,250,000 through Makena Wailea Real Estate. The Maui Real Estate Team may represent interested parties as their buyer’s agents.
The second new development to come to market this year was the Ridge at Wailea. This is a vacant land offering with homes sites up near the Hotel Wailea. Pricing ranges from $1,550,000 to $2,800,000 for the 9 lots that are roughly a half acre in size. This development is being represented by Wailea Realty. The Maui Real Estate Team can represent interested parties as their buyer’s agent. It will be interesting to see how well this development is received by the market. The last land offering in this range was the Bluffs at Wailea. That development came out during the market doldrums of the last real estate downturn and was not well received by buyers. That land is now going to be developed as condos (more on that below).
There is the possibility of one additional land offering hitting the market this year. A second phase of Wailea Golf Estates is planned and that would include 16 additional luxury home sites. The time frame to go to market has yet to be announced.
There is at least one condo development that should hit the market this year as well. Keala O Wailea will consist of 70 condos spread over 7 three story buildings. It will be built next to the Wailea Gateway Center at the site of the aforementioned Bluffs at Wailea. The 70 condos will include 4 floor plans ranging in size from 1196 square feet to 1510 square feet. The top floor penthouse suites will be the largest units. The Keala O Wailea will prohibit vacation rentals. The community will have a nice pool area and should have big views from that location. Pricing for the development has not been announced, but it has been suggested that the prices will be “affordable for Wailea.” To be clear, that doesn’t mean affordable housing by any standard definition, but we should see starting prices under $1,000,000. Additional information on the development and sales reservations should be coming some time around the middle of this year. As with any new development on Maui, it is not out of the realm that those dates could be pushed back. If the pricing holds true to what has been insinuated, I would expect Keala O Wailea will receive strong interest from buyers.
Makali’i at Wailea is a condominium development that is scheduled to be built across from the Fairmont Kea Lani Hotel in Wailea. This complex is supposed to go to market in the last quarter of 2014 with construction planned to start in 2015 and run through 2017. Preliminary plans for Makali’i call for 68 units spread over 17 buildings of four units each. The condos will feature a modern design with a lot of glass. I saw the preliminary sketches for the condos and they will be very unique from the current inventory in Wailea. It is expected that there will be two and three bedroom floor plans with roughly 1,500 to 1,700 square feet of living space. The condos should have excellent views. The community will have a pool and club house area for residents. Makali’i will also prohibit vacation rentals. I haven’t heard anything regarding the pricing for the condos, but I would expect that they will be at a higher price point than anything at Keala O Wailea.
The impact of the new developments on the Wailea and Makena markets will be interesting to watch. I have found that activity at new developments may mean slower activity at comparable existing condos. I would think places like Kanani Wailea, higher priced units at Wailea Fairway Villas and potentially Kai Malu could be impacted by a place like Keala O Wailea. We may see an overall decrease in sales volume as the new condo developments will be unlikely to see units close until construction is complete.
Contact The Maui Real Estate Team if you are interested in buying or selling property in the Wailea and Makena area. The Maui Real Estate Team would welcome the opportunity to sit down for a free consultation. You can also search the current inventory of Makena and Wailea Condos for Sale and Makena and Wailea Homes for Sale on MauiRealEstate.com.
Maui Real Estate Blog
January 2014 Maui Real Estate Statistics Sneak Peek!
The first month of 2014 is in the books and Valentine’s day is just around the corner. That means it is time to take the pulse of the Maui Real Estate market and get a sneak peek at the January 2014 Maui Real Estate Statistics. This post takes a look at sales volume and median prices for properties this January and compares them to what we saw during January 2013. I also highlight some other numbers that I came across while compiling these stats that I thought might be of interest. This month, I am opting not to do a video analysis. I will be saving my face made for radio until next month. However, I did take a stab at gauging buyer activity during the first six weeks of peak buyer season. Without further ado, here are the numbers.
There were 64 homes sold in Maui County during the first month of 2014 with a median sales price of $691,500. Last January, there were 63 homes sold with a median price of $550,000. That is a less than 2% increase in sales activity and a 26% increase in median price when comparing this January to January 2013.
There were 92 condos sold in January of 2014 with a median price of $431,000. In the first month of 2013, there were 63 sales at a median price of $297,000. That means a 46% increase in sales activity and a 45% increase in median prices over last January.
There were 13 land sales in January of this year at a median price of $370,000. Last January, there were 7 sales with a median price of $675,000. That is an 86% bump in activity and a 45% decrease in median. With the smaller sample sizes, the difference in sales and medians can be more dramatic.
In addition to the numbers above, here are a few other numbers and tidbits that I thought were worth sharing about the January Real Estate sales activity.
- The highest priced home sale for January was $9,300,000 for a 4,000 square foot oceanfront home at Makena Place.
- That was one of 11 homes sold over $2,000,000 in January. That is a very strong month for ultra luxury purchases. For context, there were only two sales in that price range last January. It was a geographically diverse list of homes sold with big closes in Spreckeslville, Pukalani, Lanai, Ka’anapali, Wailea, Kihei and Makena.
- The high condo sale last month was $2,600,000 for a three bedroom unit at Hoolei in Wailea.
- The Ho’olei sale was one of 7 condo transactions that sold for over $1,500,000. There were also high dollar transactions at Honua Kai, Ka’anapali Ali’i, Puamana and the Terraces at Manele over on Lanai.
- As a quick side note, there continues to be pretty extensive luxury sales activity on Lanai. I did a little digging and the vast majority of the purchases appear to have been made by an LLC out of Walnut Creek, California. I suspect that LLC is owned by Larry Ellison.
- The high land sale in January was $4,587,999 for 3,455 acres of land in Hana. This is all of the Hana Ranch land on the Mauka or Mountain side of Hana Highway. This was a complex transactions with additional considerations above and beyond the published sales price. This also included the Ranch’s cattle operation and private water system. With the water system comes additional obligations. It is also known that there were quite a few parcels of land included in the purchase that did not have clear title.
- Bio-Logical Capital was the entity that purchased the Hana Ranch. They plan to keep the land in agriculture and conservation with the hope of boosting the agricultural productivity. It will be interesting to see what changes this purchase might bring to Hana and the Hana Real Estate market.
- There were only 4 bank owned (REO) sales that closed last month. There were 6 REO sales in January of 2013. At this point, bank owned properties are having a very limited impact on the Maui market.
- There were 10 short sale transactions completed in January. Last January, there were 14 short sale transactions. It will be interesting to see if the number of short sale transactions will decrease significantly going forward. A mortgage forgiveness tax break expired on December 31st. Sellers may find debt forgiven by banks to be classified as income by the IRS.
There were a couple of things that stood out about last month’s numbers. They are both related. Number one on the list is the high monthly median sales price for homes. To be clear, the drastic increase in medians is not a just a reflection of the increase in home values. It is safe to say that there were price increases around the island, but that wasn’t the only factor that drove up the median. Distribution of sales plays just as big if not an even bigger role than price increases when it comes to changing median sales prices. That brings us to the other number that really stood out this month in the stats. The 11 homes sold over $2,000,000 was significant. When 17% of the homes sold in a month are over $2,000,000, that is going to push up your median sales price. As I have said in other recent stats posts on our blog, I think we can attribute a good portion of this high end market activity to a very strong year for the stock market. There were high net worth buyers who cashed in on their stock returns and made discretionary purchases of Maui luxury properties.
January is typically a slower month for sales to be reported. That is because November and at least the first couple of weeks of December typically see fewer properties to go under contract. That isn’t as busy a time of year for year for visitors and local buyers tend to be preoccupied with other holiday activities to be shopping for houses. While January may not bring a ton of sales, this is one of the three to four months of the year that constitute our peak buyer’s season.
Lately, I have heard some buzz on the street and from other Realtors that the market had really picked up as of late. That didn’t quite jive with what I had observed in my own personal real estate experience. It also didn’t quite reflect what I was seeing with pending properties on our MLS. The market feels like it is humming along at a good pace, but it did not feel any stronger than last season. If anything, I suspected that more limited inventory on the low end was reducing the total number of sales. I wanted to make sure I wasn’t missing something.
While we have our fingers in a broad cross section of the Maui market, maybe there was more activity that I overlooked. The January sales volumes above are a lagging indicator. They don’t show the current market activity. To get a gauge of current activity, I wanted to look at the properties that went pending since the start of peak buying season. The table below shows the properties that have gone under contract between December 20th and January 31st and compares it to the same period a year ago.
As you can see from the chart above, buyer activity during the 2013-2014 peak buyer’s season is for all intents and purposes mirroring what we saw the year before. Vacant land is the only property type where the number of properties going into escrow is lagging behind what we saw last year.
For buyers considering entering the Maui Real Estate market, the analysis above looks at the market in broad brush strokes. Sales activity and pricing momentum varies around the island by community and price point. The Maui Real Estate Team would welcome the opportunity to discuss market conditions and available inventory for the types of properties that will meet your needs. Sellers will find that market conditions have continued to improve, but there are still places where higher inventory requires thoughtful pricing. Contact The Maui Real Estate Team today for a free consultation to discuss your property and your real estate needs.
Maui Real Estate Blog
Wailea and Makena Market Report
The South Maui Resort Community of Wailea is world renowned for it’s beautiful beaches, great golfing, fine dining, shopping and more. Makena is located just to the South of Wailea Resort. It offers its own stunning beaches, golf and a quieter setting. Both areas offer exclusive real estate and some of the most expensive properties on the island. While we are well past the first of the year, we wanted to provide a market update looking at how Wailea and Makena performed during 2012. We also give some thoughts on the 2013 market outlook.
There were 25 home sales in Wailea and Makena in 2012 at a median sales price of $1,410,000. By comparison, the 2011 numbers were 29 home sales at a median price of $2,100,000. That calculates to a 14% decrease in activity and a 33% decrease in median price.
There were 114 condo sales in Wailea and Makena during 2012 with a median sales price of $757,500. There were 101 sales in Wailea and Makena during 2011 with a median sales price of $900,000. That is a 13% increase in activity and a 16% decrease in median price.
There were 5 land sales in Wailea and Makena in 2012 at a median price of $875,000. The 2011 Wailea and Makena Land sales figures were 5 sales at a median of $2,000,000.
Here are a few other numbers of note that I thought were worth sharing about the 2012 Wailea and Makena Real Estate Market:
- The high home sale for the year was $9,850,000 for an oceanfront home in Makena Place. Also of note, there was an estate along Keawakapu Beach that closed for $23,000,000. This was classified geographically as a Kihei closing, but that area is often thought of as part of Wailea. About half the sales closed along that stretch of beach are classified as Wailea sales while the other half are Kihei closes.
- There were a total of eight home sales over $2,000,000 in Wailea/Makena. There were fifteen $2,000,000 plus sales in the area during 2011.
- Four of the twenty-five home sales were in Makena. There were six Makena sales in 2011.
- The low home sales price was $775,900 for a bank owned home in Wailea Pualani.
- The high condo sale was $5,992,000 for a three bedroom/three bath unit at Wailea Beach Villas
- There were 28 condo sales over $1,500,000 in 2012. By comparison, there were 41 condo sales over $1,500,000 in 2011.
- Grand Champions was the Wailea condominium with the most sales activity. There were 16 closes in 2012.
- There were nine bank owned sales in Wailea and Makena during 2012. There were twelve bank owned sales in 2011. Wailea and Makena have not seen near the number of bank owned listings as other communities.
The Wailea and Makena Real Estate markets saw improved overall activity during 2012 overall. Much of this increased activity occurred at lower price points for this market. The sharp dip in median prices for homes and condos reflect a slow down in activity at higher price points in the market. There was a 47% decrease in homes sold over $2,000,000 and a 32% decrease in condos sold over $1,500,000. This is in line with some of the trends we saw island wide.
What will 2013 bring for the Wailea and Makena Real Estate markets? We have the advantage of almost two months of activity to get a sense of what is happening in the market. For home sales, we are seeing signs of improvement. There are already four homes sold with six more pending sales. Of note, six of the pending or sold homes are priced over $2,000,000. If we were to continue at this pace, it would bode well for ultra luxury homes in Wailea and Makena.
The Wailea and Makena condo market appears to be following a similar pace to last year. There are 38 condos that have either sold or are currently pending in the area. The ultra luxury condo market does not appear to be taking off at the same pace as the ultra luxury home market with only five condos over $1,500,000 that are either pending or sold since January 1.
Some markets around the island have a muddled 2013 outlook due to a lack of inventory. What about Wailea and Makena? The chart below shows the Wailea and Makena home inventory by price point and compares it the 2012 Wailea and Makena Home Sales by price point.
The Wailea and Makena home market still has over a year’s worth of inventory based on last year’s absorption rates. The lower price points of the market are the only places were scarcity could be an issue at this point. There is only one active listing under $1,000,000 compared to the six sales in that price range in 2012. There is only one active listing priced between $1,000,000 and $1,250,000 compared to three sales in 2012. I surmise that this is going to be a price range with very limited opportunities during 2013. Bank owned opportunities are likely to be few and far between, and we may well see some upward price pressure. As you get higher in price, the options increase. Over $2,000,000, there is a few year’s worth of inventory based on last year’s absorption rate. That being said, it looks likely that absorption rate may be increasing based on early 2013 activity.
The chart below looks at 2012 Makena and Wailea Condo sales by complex and compares them to the current active inventory of Wailea and Makena Condos.
The Makena and Wailea Condo market appears to have a similar outlook for 2013 compared to the home market. Lower priced condos like Wailea Fairway Villas and Grand Champions are showing increased scarcity. As a result, you are seeing some upward price pressure. As you move to the condo complexes with higher price points, you start to see greater depth of inventory. One thing that differentiates the condo market is that there are two new developments on the market in 2013. The Suites at Wailea is a new offering that just came on the market in January. This low density vacation rental is situated at the top of Wailea. It is a unique offering in that there is a special focus on services and amenities. All owners will be required to purchase membership in Club 72. Club 72 membership provides access to the health spa, preferred dining at Capische Restaurant, Cooking classes, valet services, limo service and a lot more. The one bedroom condos at the Suites at Wailea Start in the low $600,000s. While the offer price is relatively low for Wailea, the monthly association and Club 72 fees come in at approximately $2,000 a month. Initial market feedback has been relatively tepid. It will be interesting to see if the market wraps it’s head around this amenity heavy offering.
The other new condo development that came on the market in January is Andaz Wailea. This much anticipated beachfront resort is situated on 15 acres on Mokapu Beach. There will be a traditional luxury hotel component and 19 luxury villas on the property. Twelve of the luxury villas are included in the initial offering. The villas will range in size from just under 2,000 square feet to over 4,000 square feet. Pricing ranges from just over $5,000,000 to over $11,000,000. Andaz is still under construction with the hotel set to open during the summer of 2013. The residences are expected to be completed a little later in the year. These ultra luxury condos are not being listed on the multiple listing service, but the developer is currently taking binding reservations. Contact The Maui Real Estate Team if you are interested in learning more about the villas listed for sale at Andaz Wailea.
Andaz Video Preview
What does all of the above mean for those who are interested in buying a property in Wailea and Makena in 2013? Buyers shopping for condos under $1,000,000 or homes under $1,500,000 will find that they have limited inventory to choose from. Well priced homes and condos in this range tend to go quickly when they do come on the market. As buyers go up in price range, the inventory and increases quite a bit. Ultra Luxury condo buyers in particular have a lot to choose from between Andaz and existing offerings like Wailea Point and Wailea Beach Villas. That being said, I would be hard pressed to call it a true buyer’s market. Many of the sellers in this market have deep pockets and can afford to wait for more favorable market conditions. Sellers who are considering entering the market, will need to adjust their strategy in part based on their price point and their urgency. Sellers who are anxious to redeploy their capital will likely need to price aggressively to ensure a shorter time on market.
The Makena and Wailea Real Estate markets offer a lot of options for interested buyers. Contact The Maui Real Estate Team today for a free consultation that will help you identify potential properties that might fit your needs. You can check out the full inventory of Makena and Wailea Homes for Sale, and Makena and Wailea Condos for sale on MauiRealEstate.com.
Maui Real Estate Blog
Official January 2013 Maui Real Estate Statistics
February is off to a busy start for the Maui Real Estate Team. That has translated into less time available for blogging. I have been in the process of working on our “unofficial” stats for over a week. In the meantime, the good folks at the Realtors Association of Maui beat me to the punch when they released their “official” January Maui Real Estate Statistics. This isn’t the first time that RAM was first out of the gate and it won’t be the last. As a result, I am going to do something of a hybrid official/unofficial post for this month’s stats. In addition to the link to the official stats above, I want to point out a few more numbers that I thought were interesting and provide some context and analysis to this month’s sales data.
There were 63 homes sold in Maui County during January with a median sales price of $550,000. Last January, there were 50 sales at a median price of $399,000. That is a 26% increase in sales volume and a 38% increase in median price.
I counted 61 condo sales on Maui this month with a median price of $287,000. That is actually one more sale than what was reported by RAM. The January 2012 numbers were 91 sales at a median price of $330,000. That is a 33% drop in sales volume and a 13% drop in median price.
There were only 7 land sales reported in Maui County during January 2013 with a median sales price of $615,000. The January 2012 numbers totaled 9 sales at a median price of $350,000. That is a 23% drop in sales activity. I am reticent to comment on the change in median price for fear that it will be misconstrued as a sign of a massive appreciation in land values.
Here are a few other numbers of note Maui’s January Real Estate Sales.
- There were 6 REO or bank owned sales in Maui County during January of 2013. By comparison, there were 29 REO sales in January of 2012. That calculates to a 79% drop in activity.
- The lack of REO activity may have contributed to some of the more frenzied bidding activity I have seen on a property. An entry level REO in Napili was listed for $225,000. By the time the smoke cleared, the sales price for the property was $390,299. That sales price was 73% over the original asking price.
- There were 14 successful short sales that closed during January of 2013. There were 19 short sale closes during January of 2012. That is 24% drop in short sale activity.
- The highest sales price for a home last month was $9,200,000 for a beachfront residential condo at Makena Place. This was the only sale over $2,000,000 last month.
- The highest sales price for a condo was $3,500,000 for a three bedroom/three bath beachfront unit at Honua Kai in the Kaanapali area. This was the only condo sale over $1,500,000. In fact, the next highest condo sale was $790,900.
There were quite a few interesting numbers above. That being said, I wanted to delve into the condo numbers first. Since we were late to the presses with our stats, I have the advantage of seeing some of the local headlines for this month’s stats. One local publication had a sensationalistic headline proclaiming a big drop in condo sales. Was this dip in activity headline worthy? Better yet, what caused this drop? Well, it is hard to say definitively but it is worth noting that the previous two months saw significant condo sales activity. Many sellers were anxious to close before the end of the year to avoid potential tax increases. I would surmise that this may have accelerated the condo activity at the end of the year at the expense of sales after the first of the year. As RAM executive Terry Tolman pointed out in the official stats, when you average the December and January Sales totals you come out to around 100 sales which is in line with what you might expect for an average month this time of year. I do not think the drop in sales numbers is in any way a reflection of future market trends. There have been 171 condos that have gone under contract since the first of the year. That is a pretty healthy number.
The drop in medians is also out of line with recent trends. I think part of that stems again from sellers trying to close before the first of the year. This was a particularly slow month for condo sales in the luxury market. It was pretty eye opening when I saw that the second highest condo sale for the month was $790,900. There are usually a few sales over $1,500,000 each month and quite a few more over $1,000,000.
While the median condo price plummeted, the home median was up substantially over January 2012. If you are a frequent reader of our stats, you will have read about the inventory crunch occurring at the lower ends of the market. Entry level homes are particularly scarce. There were only 14 sales under $400,000 this January. Last January, there were 24 homes sold under $400,000. I would imagine we are going to continue to see elevated median sales prices unless there is an influx of lower priced home inventory.
The land market regressed after a strong close to 2012. Perhaps, that may have been due to my over exuberance in the Unofficial December stats. More likely, we may have seen a similar scenario to the condo market with some sellers trying to close before the end of the calendar year resulting in fewer sales right after the new year. Again, I don’t necessarily see this as a sign of decreasing activity in the land market. As it stands, there are already seven land sales that have been recorded since February 1.
What does this all mean for buyers and sellers? Limited inventory continues to have a significant impact on the Maui Real Estate market. Entry level homes and condos are particularly scarce, but there are shortages of listings in some communities going all the way up to the $1,000,000+ range. Buyers need to be prepared to act quickly when the right opportunities come on the market. If you require financing, getting pre-approved on your loan is a must. It helps you determine your budget and it improves your standing in the eyes of sellers. Sellers are facing an interesting market place. While the situation for sellers is improving, there are things to be aware of if you are listing your property. I have seen a few properties go on the market well above recent comps. The Limited inventory has created enough of a frenzy that buyers are willing to submit offers at or near these premium prices. The challenge comes with appraisal. Appraisal standards are a lot tougher than they were in the boom times. If the comparable sales aren’t there, you won’t get the appraisal you need to move forward on a sale. Other listings that are going on the market for well over recent comparable sales aren’t getting as much interest. Market dynamics are proving to be complex. Either way, well priced properties are going to have a much higher chance of closing successfully.
We would welcome the opportunity to talk to buyers and sellers who are interested in entering the Maui Real Estate market. We look forward to discussing how we can assist you in achieving your goals in the Maui market. Contact The Maui Real Estate Team for a free consultation today.