Maui Real Estate Blog
Tour Some of Maui’s Stunning Oceanfront Properties
It’s the weekend. Or at least I think it is. With stay at home rules in place, many buyers are turning to video and 3D tours as a safe way to tour property. We already posted video and 3D tours for the Maui Real Estate Team’s listings. If you need a little distraction and you’ve binged all that Netflix has to offer, I thought we might take you on a tour of some of the island’s more impressive oceanfront listings. Whether you are an oceanfront home buyer stuck on the mainland waiting for the all clear to fly out, or you just want a little Maui eye candy, we hope you enjoy the tour.
9 Bay Drive, Kapalua
This beautiful property of just under 10 acres is currently the most expensive active listing on Maui. The eight bedroom, eight and half bath home has 6,645 square feet of interior living space and a stunning pool area. Situated on a bluff overlooking the Pailolo Channel between Maui and Molokai, the views of the ocean and neighbor islands are stunning.
Hawaii Life Real Estate Brokers listed this home for $37,500,000. Check out the listing details for 9 Bay Drive for more photos and information.
4508 Makena Road
This new home is located along one of our favorite beaches on the island. Palauea or White Rock is a beautiful sandy beach with good snorkeling at either end. The four bedroom, five and half bathroom home has 5,065 square feet of living space. Never lived in before, the builders completed construction in 2018.
You can also take a 3D tour of 4508 Makena Road to get a better sense of layout. Find photos and additional details at the 4508 Makena Road MLS listing page. Island Sotheby’s Real Estate listed the home for $27,498,000.
11485 Honoapiilani Highway
I always loved this Olowalu Oceanfront home for its classic Kama’aina style. While built in 2001, it features a lot of the best design elements of 1930s Hawaii Architetcure. The main house is four bedrooms, five and a half baths and includes over 6,065 square feet of living space. There is a 75 foot long pool, a separate one bedroom ohana and a third structure with a gym steam room and suite above.
Listed by Hawaii Life Real Estate Brokers, the asking price is $9,395,000. Check out the MLS listing of this Olowalu Oceanfront home for more photos and details.
7381 Makena Road
This Makena property isn’t direct oceanfront, but it is pretty darn close. Makena Road is what separates this home from a small rocky beach. Built by renowned local builder John Cahill, this 3 bedroom, 3.5 bath home includes 3,919 square feet of living space. There is a separate two bedroom, two bath cottage.
Hawaii Life Real Estate Brokers listed the home for $12,990,000. Check out the MLS listing of 7381 Makena Road for more photos and details.
Wailea Point 102
There are some pretty stunning oceanfront condo options. Wailea Point 102 is arguably one of the best. It is a double unit overlooking Wailea Beach, Ma’alaea Bay, Kaho’olawe, Molokini and Lanai. The three bedroom, three bath unit includes 3,805 square feet of living space. The video for the property shows a lot of the scenery surrounding Wailea Point. It is easy to see why. This is one of the premier locations on the island with the Four Seasons and the Grand Wailea located to the North and the Fairmont Kealani located just to the South.
Island Sotheby’s Realty listed the property for $17,995,000. Find more photos and details on the Wailea Point 102 MLS listing page. There is a second double unit at Wailea Point on the market that is also worth checking out. Wailea Point 1602 is equally stunning and priced almost $1,000,000 lower.
Makena Surf G 301/302
This is another double unit just down the coastline from Wailea in Makena. Makena Surf offers beautiful vistas and a great setting on Po’olenalena Beach. The combination of two units means plenty of space for friends and family with five bedrooms and five bathrooms.
Romvari Realty listed this beautiful condo for $6,999,999. Check out the Makena Surf G301/302 listing page for more photos and details.
More Oceanfront Options
Contact The Maui Real Estate Team if you have any questions on any of the stunning properties above. If you need to binge on more Maui Oceanfront Property, you can check out the full inventory of Maui Oceanfront Homes and Maui Oceanfront Condos.
Maui Real Estate Blog
July 2016 Maui Real Estate Statistics
Why is the Maui condo market showing signs of improvement in 2016? That is one of the questions, I asked myself in this post and did my best to answer by taking a deeper dig into this year’s condo sales. You will find all of those thoughts and a rundown on the overall July 2016 Maui Real Estate Stats. Without further ado, here are the July numbers and some thoughts and context on the market.
July 2016 Median Prices and Sales Volumes
There were 93 home sales with a median price of $600,000. In July of 2015, there were 129 sales with a median price of $590,000. That is a 28% decrease in volume and approximately a 2% increase in median price.
There were 110 condos sold for a median price of $440,000. Last July, there were 94 sales with a median sales price of $394,000. That is a 17% increase in median price and a 12% increase in median price.
There were 7 land sales with a median price of $490,000. There were 13 sales in July of 2015 with a median price of $250,000. This is a 46% decrease in volume and a 96% increase in median price.
Notable Numbers from the July Real Estate Sales Activity
While compiling the sales volumes and median prices, I came across some other noteworthy numbers.
- The highest priced home sale in July closed for $18,000,000. The Beachfront Oli Oli Kai Property on Stable Road in Spreckelsville closed for a new North Shore record. That said, it could of or maybe should have been classified as three separate sales. The property was condominiumized into three separate units. The three units included a total of three homes and approximately 3.6 acres.
- This was one of 7 home sales over $2,000,000. The six other sales included three properties in Lahaina and one sale each in Wailea, Kula and Ka’anapali.
- The highest priced condo sale closed for $3,850,000. The 3 bed, 3.5 bath unit at Montage Kapalua has 2,789 square feet of living space.
- That was one of 10 sales over $1,500,000 to close in July. The other sales included 2 closes at Ho’olei and one each at Ka’anapali Ali’i, Sugar Cove, Wailea Elua, Makena Surf, Honua Kai, The Whaler and The Palms at Manele.
- The high land sale for the month closed for $1,800,000. The four acre lot is located in Kapalua Plantation Estates. There was one other $1,000,000 plus land sale this month. That 17.47 acre lot is located in the Makila Ranch Area of Launiupoko.
- There were 13 bank owned properties that closed in July. That is down from the 20 that closed in July of 2015. There was only one successful short sale completed last month compared to the 8 completed in July of 2015.
New July Pending Sales Contracts
We track the number of properties that go pending in a particular month. It gives us a more recent data point on buyer demand and it also helps us to better suss out whether the prior month’s sales activity is something of a one off event or part of a broader trend. I will spell that out a little better as we review last month’s pending data.
Looking at the pending sales activity, the number of homes that went under contract in July was down compared to last year. The number of condos that went under contract was the same as last year and land pending sales were up ever so slightly. The decrease in home sales is part of what appears to be a continuing trend that we have seen over the last few months. Shrinking home inventory, particularly at lower price points, has led to a reduction in sales activity. The condo market appears to be continuing a recent trend of sales at or above last year’s totals. I will delve into that in more detail below. While land sales aren’t exactly booming, it was good to see that they were up slightly from last year. That would suggest that the low July land sales numbers were more of an outlier than the start of any sort of trend.
Thoughts on the Market
We have discussed the decreases in home sales volumes over the last few posts, but I haven’t talked a whole lot about the increase in condo sales activity. Of the 7 months of sales this year, one month had the same sales volume as the same month from 2015, and one month was down from the same month last year. Five of the months have experienced greater sales volume than the same month of 2015. The last four months have all seen an increase over the same month of 2015. Over that period from April-July, sales volumes are up 14% compared to the same period of 2015. That raised the question of why we may be seeing an increase in activity. I dug into the sales data a few different ways to try to see if I could come to any conclusions as to what is driving the increase in sales activity.
The first thing I did was break down the sales volume over the last four months by price point.
I can’t say that this breakdown provided me with a clear picture of the driving force behind price increases. We can see an increase in sales below $300,000 and an increase in the $1,500,000 and higher range. The middle price ranges tend to be a mixed bag. The biggest increase in activity of any price range occurred between $500,000-$749,999. I can’t say off the top of my head why that would have occurred. The middle of the market, so to speak, also included the only two price points where sales were down compared to last year. The remaining price ranges saw relatively limited increases over 2016.
Not feeling like I had a clear answer, I took a look at two other data points. The first data point is is whether or not the property allows short term rentals. This data is somewhat flawed as it is not a mandatory field in our multiple listing service. In other words, not every condo sale that occurred over the last month reported whether or not the condo allowed vacation rentals.
It is pretty clear that there was an increase in sales for properties that are reported to be vacation rentals. I calculated a 26% increase over the period between April 1, 2015 and July 31, 2015. It was interesting to note that the increase in vacation rental condo sales was particularly evident in the $500,000-$749,999 price range. That appears to point to a significant driver for sales activity in that price range.
The one other data point I wanted to look at was new developer sales. New developments can be market drivers that boost the overall sales activity. In some cases, the boost can mask other market trends. An example of this is when Honua Kai started to close a lot of condos while we were still in the thick of the downturn. Overall condo demand was low, but sales numbers were relatively high as buyers were closing on contracts that were originally written pre-construction during the peak of the real estate boom. From what I could glean, we haven’t seen a similar phenomenon over the last four months. There was an uptick in new development sales. I counted 29 new development sales from April 1, 2016-July 31, 2016. That is up from 23 sales during that same period last year. However, the vast majority of these contracts were written recently.
While I can’t say I have definitive answers on what is driving the recent uptick in condo sales, the data above points to three price ranges where the improvement was most prevalent and a type of condo that saw more activity. Based on anecdotal evidence and the quantitative evidence, I am going to postulate a few reasons for the increases in each of these segments. The increase in sales at the low end is a reflection of the continued strength of the buy over renting argument on Maui. Maui rental rates have soared. Low borrowing costs make owning a number of Maui condo less expensive than renting. As long as rents remain high and rates remain low and inventory is sufficient, that part of the market should continue to be busy. I can’t say definitively why the high end market is outperforming last year in terms of sales. When I look at the luxury home market, sales totals between 2015 and 2016 have been almost identical. It just seems as if high end buyers are gravitating more towards condos this year. I believe the increase in vacation rental condo sales, and in the $500,000-$749,999 range in particular, is a reflection of pretty strong consumer confidence among some mainland buyers. West Coast real estate markets have been strong and the stock market has performed well. This means more cash for discretionary purchases like a vacation rental condo on Maui.
A Few Closing Thoughts for Maui Buyers and Sellers
I think there are some things to be learned for the overall Maui market from my review of the condo numbers. The biggest is that there is variability in the strength of the market by price point. I think you can also add geographic variability as another factor. Not all communities are seeing equal levels of buyer demand. While these stats tend to paint the market in broad brushes, how buyers and sellers approach the Maui market is going to be a reflection of their specific segment of the market. Contact The Maui Real Estate Team if you are interested in buying or selling a property on Maui. We would welcome the chance to hear about your needs and to discuss market conditions that are most relevant to you.
Maui Real Estate Blog
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.
Maui Real Estate Blog
November 2015 Maui Real Estate Statistics
It is New Year’s Eve, and I am just getting around to the November 2015 statistics. Needless to say, the holiday season is a whirlwind and blogging can find itself on the back burner. Since this is a last minute attempt to squeeze in the November numbers before the end of the year, this is going to be something of an abbreviated post with limited analysis. Don’t worry, I plan to delve deeper into stats next week with year end numbers. In the interim, here are the November Maui Real Estate Stats.
November Sales Volumes and Median Prices
There 72 homes sold in November with a median price of $550,000. By comparison, there were 76 homes sold in November of 2014 with a median price of $587,500. That is a 5% drop in sales volume when comparing this November to last November.
There were 74 condos sold in November of 2015 with a median price of $475,000. Last November, there 68 condos sold with a median sales price of $366,250. That represents almost a 9% increase in sales volume when comparing the two Novembers.
There were a total of 9 land parcels sold in November with a median price of $520,000. In November of 2014, there were 10 lots sold in Maui County with a median sales price of $411,500. That is a 10% drop in volume comparing this November to last November.
Notable Numbers from the November Maui Sales Activity
While compiling sales volumes and sales medians, I came across some notable numbers that I thought were worth sharing.
- The highest priced home to sell in November was located in the Kaanapali Coffee Farms. The 3,716 square foot home has big ocean views, an infinity pool and over 4.6 acres of land. It closed for $3,475,000.
- This was one of four home sales in Maui County for more than $2,000,000 in November. The other sales were in Lanai, Paia and Wailea respectively.
- The Wailea sale set a new record for the Wailea Kai neighborhood. It closed for $2,200,000.
- The highest priced condo to close in November was a 3 bedroom, 3 bathroom unit at Honua Kai with 2,170 square feet of living space. It closed for $3,197,450.
- The Honua Kai sale was one of six condos to close for over $1,500,000 in November. The other big condo sales included two more at Honua Kai, a Hoolei, a Ritz Carlton Residences and a Makena Surf.
- The highest priced land transaction last month was for a .43 acre parcel in the Maluaka Estates Neighborhood of the Makena Golf and Beach Club. The lot closed for $9,000,000. Six of the ten lots in Maluaka Estates have now sold.
- There were 16 bank owned sales and 1 short sale that closed in November. In November of 2014, there were 12 bank owned sales and 4 short sales.
November Maui Pending Real Estate Sales Activity
As I have said before in our stats posts, sales volume can be a lagging indicator. With contracts that typically take 30-60 days to close, the November sales are more of a reflection of buyer interest in September and October. That is why we also like to look at the total number of properties that go pending in a particular month. The chart below compares the number of homes, condos and parcels of land that went pending this November as compared to last November.
Home pending sales were up significantly over November of 2014. Condos and land saw a modest dip in pending sales activity. In the one bit of analysis in this post, I would surmise that the strength of pending home sales may pertain to the anticipation of increases in interest rates. While the December increase in rates proved to be modest, buyers wanted to lock down as low as rate a possible.
Wrapping it up
With the new year upon us, expect quite a few stats posts in the coming weeks. We will be taking a look at the December stats, the overall 2015 stats and year end reviews and outlooks for a handful of communities around the island. We wish everyone a Happy New Year. Contact The Maui Real Estate Team if buying or selling real estate on Maui is part of your 2016 plans. We would welcome the chance to sit down with you and discuss your needs.
Maui Real Estate Blog
Maui Luxury Condo Market Update
Earlier this month, we took a look at Maui’s Luxury Home Market. Today, I wanted to turn my sights towards the high end condominium market. This post will include totals on all of the condos sold for the year to date (as of September 20), notable numbers from this year’s sales, and market conditions specific to the three resort areas of Wailea/Makena, Ka’anapali and Kapalua.
When we have discussed luxury condos on our blog, we have used the $1,500,000 and above price point as the threshold for pricing. When we first started to look at the luxury condo market, that was something of a starting point for some of the really high end condos. To be clear, there are some very nice condos below this price point. That said, we want to be consistent with our methodology. So all properties discussed in this particular blog sold for $1,500,000 or more.
Maui Luxury Condo Sales Volume and Median Price
There were 69 condos sold thus far this year as of September 23, 2015. The median price for those sales was $2,250,000. Between January 1, 2014 and September 23, 2014, there were 63 sales at a median price of $2,575,000. That is roughly a 10% increase in volume and a 13% decrease in median price.
Notable Luxury Condo Sales Numbers for the Year to Date.
Here are some of the most noteworthy numbers from the luxury condo sales this year.
- The highest priced condo to sell thus far this year closed for $8,500,000. This is a three bedroom, three and a half bath, beachfront unit with 2,919 square feet of living space at Wailea Beach Villas.
- Including the sale at Wailea Beach Villas, there were a total of 12 condos sold over $4,000,000.
- Honua Kai saw the most sales activity of any condo complex on the island. There were a total of 20 sales at Honua Kai over $1,500,000 including 11 new developer sales.
- The Wailea and Makena Market saw the most sales activity over $1,500,000 with a total of 28 sales. Kaanapali saw the second most activity and Kapalua was third.
- In addition to the sales activity in the major resort markets, there was one sale in Lahaina, one in Kihei, one in Spreckelsville and two on Lanai.
- There were no bank owned condos or short sale transactions among this year’s sales
Wailea and Makena Condos
Wailea and Makena have had a good year for sales to date. The 28 sales reported exceeded last year’s total of 20. That is a 40% increase in activity. Much of that increase in activity occurred in Makena. While there was only one sale in Makena during the same period last year, this year there were 6 sales. Five of the six Makena sales were at Makena Surf. The remaining sale was at Na Hale O Makena. This was a particularly busy year for Makena Surf with the five sales reported thus far more than any year since 2004.
The Wailea sales over $1,500,000 were spread out among a variety of complexes. There were 7 sales at Hoolei, 1 at Andaz, 2 at Kai Malu, 1 at Papali, 1 at Wailea Ekahi, 3 at Wailea Elua, 3 at Wailea Beach Villas and 3 at Wailea Point. Hoolei continues to lead the way in high end sales in Wailea. The size of the condos combined with their price point and the potential to access amenities at the Grand Wailea continues to be an attractive option to buyers. While Wailea Beach Villas did not have the same sales volume, it was noteworthy for the fact that it had the top two highest priced condo sales on the island thus far this year.
It will be interesting to see what happens in the Wailea and Makena market for the rest of the year and into 2016. There is still a good selection of variety to choose from on the MLS. There is plenty of active inventory on the MLS with 40 condos on the market. There are unlisted properties available at Andaz and the new Keala O Wailea development. There is also a chance that we might see pre-construction sales at Makali’i at Wailea before the end of the year. You can see all of the current Wailea and Makena Condos listed on the MLS on MauiRealEstate.com. Contact The Maui Real Estate Team if you have questions on any of the unlisted properties.
The Ka’anapali Condo market has also had a fairly strong year with 26 sales reported to date. That is down 7% from the 28 units sold during the same period last year. The Ka’anapali market has been buoyed over the last several years by activity at the Honua Kai Resort. Honua Kai has been a big draw as the first fee simple whole ownership new development along this stretch of coast for over 20 years. Of the 26 condos sold in Ka’anapali for $1,500,000 or more, 20 were at Honua Kai. Ka’anapali Ali’i has had 5 sales thus far this year. There was also one sale at the Masters.
The Ka’anapali luxury condo market is starting to see shrinking inventory with only 20 active listings over $1,500,000. A big part of that stems from Honua Kai. The developer is getting close to selling out their remaining units. There are only 3 new developer listings left on the MLS. I believe there are still a handful of additional new developer units in addition to those posted on the MLS. There are only three units active at Ka’anapali Ali’i with the remaining listings located at Ka’anapali Shores and the Whaler. It will be interesting to see if the dwindling inventory at Honua Kai will have an impact on places like the Whaler and Ka’anapali Shores. Buyers have shown a preference for the newer Honua Kai Condos leading to depressed sales at the other places. Will some of the older condos nearby start to see an uptick in activity? You can see the full inventory of Kaanapali Condos listed on the MLS via MauiRealEstate.com.
The Kapalua Market has seen pretty similar activity levels to what we saw last year. There have been 10 sales reported in the year to date this year. There were 9 sales reported over the same period last year. The focal point for luxury condo sales in Kapalua has been the Montage Residences on Kapalua Bay. Montage came on the market last June. This property was formerly the Ritz Carlton Residences. The Ritz Residences went into foreclosure and the property was purchased by Lantern Capital. Lantern appointed Montage to manage and revamp the property. Montage has seen steady sales since it has come on the market despite pricing that starts in the mid three million dollar range. There have been 8 sales reported at Montage thus far this year.
The other notable sale was at Ritz Carlton Residences. To be clear, this is a different animal from the Ritz Residences Kapalua Bay that was previously foreclosed upon. These condos are part of the Ritz Carlton Hotel. The Ritz condos had been on the market closer to the downturn and weren’t getting as much traction. They are back under the market with a new sales team. It will be interesting to see how these condos are received by the market going forward. From what I have heard, they are getting a pretty good response.
While the two new developments have been relatively well received, some of the older complexes have seen slower activity. High end Kapalua condos like Coconut Grove and the Ironwoods are traditionally condos that see limited inventory and limited sales volume. There was one sale in the Ironwoods this year. Kapalua Bay Villas is a condo that seems to be getting poor market feedback by luxury buyers. There have been 4 sales over $1,500,000 at Bay Villas since 2009. There are currently 7 active listings in the complex with none pending. It appears as if sellers in this complex may need to adjust pricing if they are going to generate interest from buyers.
For the rest of the year, I would anticipate that we will continue to see activity at Montage and the Ritz. Buyers in Kapalua have a good selection of inventory to choose from. You can see the full inventory of Kapalua Condos on the MLS on MauiRealEstate.com. Contact The Maui Real Estate Team directly if you would like us to assist you with buyer representation at either the Montage or the Ritz. There is more inventory available at both of those condos than what is showing on the MLS.
Other Condo Sales Around the Island
In addition to the activity at the resort communities, there have been a handful of sales from other communities around the island. There was one sale in Spreckelsville at Sugar Cove, one in Lahaina at Puamana and one at the Royal Mauian in Kihei. There were also two sales over on Lanai including one at the Terraces at Manele and the other was at the Palms at Manele. The two Lanai purchases were both Larry Ellison buys as he continues to expand his holdings on the island. We tend to see limited activity on higher priced condos outside the main resort areas not so much due to lack of demand as it is a lack of inventory. There are only a handful of condos outside the resorts that can sustain prices of $1,500,000 or greater and they tend not to have a ton of inventory.
Overall Thoughts on the Maui Luxury Condo Market
Buyers still have a great collection of condos to choose from around the island. There are both new development opportunities and condo resales in more established condominiums. While the depth of the inventory may provide options, sellers in this price range tend to have more staying power. The challenge is finding potentially motivated sellers who might want or need to redeploy their money elsewhere.
I would expect that the luxury condo market will continue to be perform at or near the levels we have seen for the year to date. While interest rate increases have been postponed, this isn’t a part of the market that is as interest rate sensitive. The bulk of the buyers are using cash or private banking. The biggest potential impacts to the market come from the greater global economy. Poor performance in the stock market is a potential threat. There seems to be something of a correlation between the DOW and high end sales on the island. We have not seen any significant influxes of buyers from China like some cities in the Western U.S. and Canada. Contact The Maui Real Estate Team if you are interested in buying or selling a luxury condo on Maui. We would welcome the chance to sit down with you for a free consultation and to discuss your interests and needs.
Maui Real Estate Blog
August 2015 Maui Real Estate Statistics
The end of Labor Day weekend marks the end of summer for many people on the mainland. The kids are back in school. The weather is starting to cool off. Summer days at the beach are becoming more of an afterthought. Here on Maui, it is safe to say our changes in season are a little more subtle. Winter waves are just around the corner, and we may even start to see the first whale spouts off our coastal waters before the end of the month. Of course, the end of labor day also means it is time that we check in and take a look at the Maui Real Estate market. This is our look at the August Real Estate Statistics for Maui. We include information on median sales prices, sales volume, pending sales, notable sales and a few thoughts on the overall state of the market. Without further ado, here are the numbers.
August Maui Real Estate Sales Volumes and Median Prices
By my count, there were 95 homes sold at a median price of $550,000 in August. Last August, there were 69 homes sold at a median price of $570,000. That calculates to a 38% increase in sales volume and a 4% decrease in median price.
There were 99 condos sold this August with a median price of $355,000. In August of 2014, there were 94 condos sold at a median price of $402,000. That means there was a 5% increase in volume and a 12% decrease in median price.
In August, there were only 4 lots sold with a median price of $347,500. Last year, there were 13 sales with a median price of $440,000. That represents a 69% drop in activity and a 21% drop in median price.
Notable Numbers From the August Sales Activity on Maui
While compiling the sales volume and median prices, I came across some other notable numbers that I thought were worth sharing with readers of the blog.
- The highest priced home sale last month was $2,035,000 for a place in Haiku. The four bedroom, three and a half bath home has 3,288 square feet of living space and a pool on 2.29 acres.
- This was the only sale over $2,000,000 this month. That is a pretty quiet month for luxury home sales.
- The highest priced condo to sell last month was a unit in Montage Kapalua Bay that went for $4,600,000. This condo has three bedrooms, three and a half bathrooms and 2,789 square feet of living space.
- After a couple of slow months, the luxury condo market saw an uptick in activity. The Montage sale was one of eight sales of a $1,500,000 or more. The other closes included 3 units at Honua Kai, 2 at Makena Surf, and 2 at Ho’olei.
- The highest priced land transaction last month was $7,800,000 for a lot in the Maluaka Estates area of Makena Golf and Beach Club. This development continues to fetch premium prices considering that this lot is .65 acres and not directly on the ocean.
- There were 8 bank owned sales and one short sale last month. The short sale is becoming an increasingly rare event. In addition to many people being in improved equity situations, buyers are likely wary of the time frames associated with short sales with an interest rate hike looming.
August was another healthy month for sales. I think it is worth starting our review of the stats with the one part of the market that did not have a good month. While the land market has never really taken off with the current market recovery, this was a particularly slow month. The four sales reported last month made it the slowest month we have seen since 2009. What was it that drove the reduced activity? Shrinking inventory could play a part. The entry point for vacant land is pushing higher and higher. I also think interest rates could be having an impact. While some buyers have previously been looking at land to build as an alternative to the housing market, that pool of buyers may be shrinking with the knowledge that the time frame for lower interest rates is shortening. It may also just be something of an anomaly. There were 16 lots that went pending in Maui County in August. I will have a little more on the pending land sales and the overall pending sales below.
Home sales continued to be strong thanks again to the threat of interest rate increases. There are quite a few buyers trying to get into the market before rates increase. That is bolstering sales compared to what we saw last year. Last month’s home sales were also boosted by 16 closes in Waikapu Gardens Phase II. This affordable housing subdivision in Wailuku will continue to bolster sales over the coming months. There are a total of 56 homes that will be sold in the subdivision, and there have been 17 sales reported to date.
The condo market fared a little better than it did in August of 2014. The one thing from the condo sales that I thought was particularly noteworthy was the bump in activity in the luxury condo market. The eight sales reported last month was a positive sign after what had been a slow few months of reduced activity.
August Pending Sales Activity
Sales are in some ways are a lagging indicator of market activity. The majority of the closes that occur in any one month are based on contracts that were written 1-2 months prior. That is one of the reasons we like to track pending sales activity.
It was a good month for pending sales across the board in August. I think we are going to continue to see pretty good pending activity until we see an interest rates hike. I would not be surprised if activity slows when that occurs. As mentioned above, there were quite a few more lots that went pending than were sold. The interesting part about that was that there was a good bit of activity at the different extremes of the market. There were 4 lots that went pending on Molokai for $30,000 or less. There were also four lots that went pending in the Maluaka area of the Makena Golf and Beach Club.
What Does it All Mean for Buyers and Sellers?
Buyers who require financing will likely be scrambling over the rest of the month as they try to get the last of the best interest rates. As a result, buyers should expect that well priced properties are going to be competitive. Multiple offers and over asking sales prices are a regular occurrence on the well priced properties on the low end and the middle of the market. Sellers will find that our usually quiet fall sales season may be a busier time of year than usual. Waiting for the busy season to list may not be advisable depending on the type of property you sell, the location and the price point. While market conditions are favorable for sellers, that shouldn’t be an invitation for sellers to overprice their property. Overpriced homes are still sitting in this market. Contact The Maui Real Estate Team if you are considering buying or selling a property on Maui. We would welcome the chance to sit down with you for a free consultation to discuss your needs.