Maui Real Estate Blog

September 2021 Kula Real Estate Market Update

Once again, it’s time to check in on market conditions for another community on Maui. Let’s head Upcountry and look at the Kula real estate market. Kula spans a vast geographic area along the Western Flank of Haleakala. It runs from roughly 1,200 feet in elevation up to 4,000 feet. From an MLS perspective it includes smaller communities like Keokea, Ulupalakua and Kanaio. Kula is an agricultural hub of Maui with a number of fruit, flower and vegetable farms dotting the landscape as well as some larger livestock operations. Homes range from modest plantation style homes on rural or residential lots to substantial estates on big acreage. This post looks at market activity for the year to date as well as a few thoughts on the market outlook.

Notable Numbers from this Year’s Kula Home Sales

  • As of September 13th, 65 homes sold in Kula during 2021. That is a 33% increase over the 49 sold during the same period of 2020.
  • The median price of the homes sold in Kula during 2021 is $1,225,000. The average price of the homes sold is $1,521,778. The median price and average price are up 28% and 38% respectively compared to the same period of 2020.
  • Fifty-seven percent of the homes sold in Kula this year closed for asking price or higher.
  • The highest priced home to sell this year closed for $9,200,000. Home doesn’t quite do the property justice. The sale included two lots totaling 23 acres, two extra large water meters, a 7,809 square foot main house, a pool, a detached 7 car garage and a second 2,712 square foot home. This is the highest ever sales price for a residential property in Kula.
  • This was one of 13 sales over $2,000,000 for the year to date. That compares to 3 during the same period of 2020.
A property in Kula represented by the Maui Real Estate Team that closed for $2,680,000 in June.
This home and cottage on 2 acres closed for $2,680,000 in June. The seller was represented by the Maui Real Estate Team, Inc.

Thoughts on the Kula Home Market for the Year to Date

Like the rest of the island, the Kula home market experienced robust activity over the year to date. Demand was high while supply remained low. Based on the rate of sales, there were 3.3 months supply of home inventory in January. After that, it dropped as low as 2.1 months supply in April and has yet to climb above 3 months supply again. Strong demand and limited supply helped to boost prices significantly. The question is how much? The change in average price and median price don’t just reflect shifts in value. They also reflect an increase in activity at higher price points in the market. Sales of homes over $2,000,000 increased 433% compared to 2020.

Outlook for The Kula Home Market for the Rest of the Year

It’s the classic push pull of supply and demand that should be in play for the rest of the year. At this point, it appears as if demand remains strong. We started unofficially tracking a new metric in our office over the last few weeks. We are looking at how quickly new listings are going under contract. With a high number of properties going under contract in less than a week, it is pretty clear that demand is still pretty strong. The question is whether we might see any relief with new inventory. While inventory is slowly increasing on the mainland, it remains near all time lows in Kula and Maui in general.

The Kula Land Market

Kula is an area of the island where you tend to see more land sales. A handful of new developments over the last few years and smaller subdivisions usually translates into a healthy supply. This year, increased buyer activity put a serious dent in inventory numbers.

Notable Numbers from the Kula Land Market

  • As of September 13th, Maui Realtors reported 35 land sales for the year. That is up 21% from the 26 sales over the same period of 2020.
  • The median sales price of the lots sold is $930,000. The average sales price is $1,058,473. The median price increased 206% from the median of $450,000 during the same period of 2020. The average price increased 24% compared to last year’s average of $853,148.
  • The lowest priced transaction closed for $350,000. That was for a 1/2 acre lot without water.
  • The highest priced lot to sell closed for $4,500,000. That parcel in lower Kula included 148 acres of land.
  • That was one of 11 lots to sell for more than $1,000,000. By comparison, there was just one lot that sold for $1,000,000 or more during the same period of 2020. That one sale was a large land acquisition by the state of Hawaii.

Kula Land Market Activity and Outlook

The Kula land market mirrored many of the other places around the island in terms of market activity for the year to date. Higher demand, shrinking supplies and rising prices. The increase in higher priced sales was another particularly notable aspect of this year’s activity. As mentioned above, there was just the one sale over $1,000,000 in 2020 compared to the 11 sold thus far this year. Seven more properties listed for $1,000,000 show as pending on the MLS. This constitutes a massive increase in demand for higher end properties in Kula.

A lot of the higher end sales activity occurred in the Kula I’o subdivision. This gated community of 2.5 acre-25 acre lots experienced modest sales activity the first couple of years on the market. The development benefited from this year’s increased high end sales activity with 15 closes ranging in sales price between $830,000 and $1,650,000. At this point, most of the developer’s lots in Kula I’o are sold or pending. That said, I imagine we will see resales and CPR lots in the future.

It’s important to keep the increased higher end activity in mind when looking at the big shift in median and average prices. While limited supply and increased demand led to rising values, the 206% increase in median price is largely a reflection of the increased sales activity with high end lots. While the big land, big view lots in Kula I’o heavily influenced the average and median price in 2021. The big driver in 2020 was a subdivision with half acre lots in the $450,000-$500,000 price point.

Moving forward, inventory or lack thereof is going to be the big market driver for the rest of the year. Unless there is a big influx of new inventory, I can’t anticipate a lot of sales activity. If demand remains relatively strong, I anticipate that the combination of demand and low inventory will mean continued upward pressure on pricing.

Contact The Maui Real Estate Team

The Maui Real Estate Team works extensively in the Kula market. Contact The Maui Real Estate Team if you are interested in property in Kula. We would welcome the chance to discuss the market and learn more about your real estate interests and needs. You can search the active inventory of Kula Homes for Sale and Kula Land for Sale on MauiRealEstate.com.

Pete Jalbert

Maui Real Estate Blog

November 11th Weekly Maui Real Estate Market Update

As the calendar flipped from October to November, buyer demand remained strong on Maui. The seven day period between October 28th and November 3rd is the sixth in a row with 60 or greater new pending sales. Closed transactions were solid over this period. Meanwhile, new inventory for the week increased. Keep reading below for more details.

This chart shows weekly new pending sales in Maui County by property type. The chart starts in late February/early March right as the global impact of Covid started to become apparent. It runs through November third.
This chart shows weekly pending sales in Maui County by property type. It runs from right before Covid-19 started to impact the Maui Real Estate market up until November 3rd. New pending sales are the best indicator of current market demand.

Maui Realtors reported 63 new pending sales between October 28th and November 3rd. That is a 7% decrease from the seven days prior. It is 43% more activity than the same seven day period of 2019.

Notable Numbers from This Week’s Pending Sales

  • This week’s new pending sales include 19 homes, 37 condos and 7 lots.
  • Of the 37 condos, 21 are located in developments that allow vacation rentals. Three more condos are resort area condos in complexes that prohibit vacation rentals.
  • Compared to recent weeks, the high end market was quieter with 3 properties with asking prices in excess of $2,000,000 going under contract.

This Week’s Closed Transactions

This chart shows weekly closed transactions by property type in Maui County. The time period runs from late February up through November 3rd.
This chart shows weekly closed transactions by property type in Maui County during the Covid-19 era. Sales are a lagging inventory of buyer demand in the market.

Maui Realtors reported 58 sales over the seven day period between October 28th and November 3rd. This is a 5% increase over the seven days prior. It is 15% less sales activity than the same seven day period of 2019.

This Week’s New Inventory

This chart shows weekly new Maui Real Estate listings by property type. The chart runs from late February through November 3rd.
This chart shows weekly new listings by property type in Maui County, Hawaii.

Maui Realtors brought 74 new listings to market over the seven day period between the 28th and the 3rd. That is roughly a 40% increase over the seven days prior. It is a 14% drop from the same seven day period of 2019.

There are 47 new condo listings that came to market over this period. While the 37 condos that went under contract during the week ties the Covid-19 era weekly high, the inventory increased thanks to this wave of new listings. The condo market is in something of a state of flux. For three of the last five weeks, we saw a net decrease in inventory. Stronger demand combined with fewer condos coming to market. We also saw a couple of weeks like this one when a large number of new listings hit the market.

At this point, I would say condo inventory trends are uncertain. Will we see a higher number of new listings go to market as we get closer to what is our traditional peak buyer season? What type of a peak buyer/visitor season will we have with a rapid increase of Covid cases on the mainland?

Only 23 new home listings came to market between the 28th and the 3rd. That still represents a very modest boost in inventory when compared to the 19 homes that went pending. The median price of the new listings also slipped well below $1,000,000 for the first time in a while. The median price of $744,900 is due in large part of a number of new listings in the new Upcountry subdivision Kua’aina Mauka. Regardless, the home inventory remains very limited on the island.

Only 4 new land listings came to market over this seven day period. This represents a net decrease in land inventory with 7 lots going under contract during the same period.

Contact The Maui Real Estate Team

As we get further into fall, the Maui Real Estate market continues to chug along with strong buyer demand. Limited inventory remains a big factor in the single family home market. The condo market has far greater supplies of inventory, but condo buyer activity also increased over the month. Contact the Maui Real Estate Team if you are thinking of buying or selling property on Maui. We are working hard to bring our buyers and sellers success in these dynamic market conditions. We would welcome the opportunity to earn your business and help you navigate the market.

Pete Jalbert

Maui Real Estate Blog

Weekly Maui Real Estate Market Update October 19, 2020

Market activity remained busy on Maui over the seven day period between October 6th and 13th. This was the third straight week with 60 or more new pending sales. Closed transactions were up substantially over the same period of 2019. New listings remained relatively low. Find out more details in the paragraphs below.

This Week’s New Pending Sales

This chart shows weekly new pending sales by property type in Maui County
This chart shows weekly new pending sales in Maui County during the Covid-19 pandemic. New Pending Sales are the best indicator of current market demand.

Maui Realtors reported 60 new pending sales over the 7 day period between October 6th and October 13th. That is 8% fewer new pendings than the seven days prior. It is 43% more activity than the same seven day period of 2019.

Notable Numbers From This Week’s Pending Sales

  • The 60 new pending sales include 19 homes, 32 condos and 9 lots.
  • The 19 new pending home sales is the lowest weekly number since early July. I would venture that low inventory may be a factor in the lower number of pending sales. There are quite a few buyers searching in the $800,000 and under range with limited options to chose from at this time.
  • Of the 32 new pending condo sales, 18 are located in developments that allow vacation rentals.
  • Of the 14 condos in developments that prohibit vacation rentals, 6 are new developer offerings in Kahoma Village in Lahaina.
  • The 9 new land transactions ties the highest total for new land contracts in a week during Covid-19.
  • The luxury market continues to see strong activity. Three homes and three condos priced higher than $2,000,000 went under contract between the 6th and the 13th.

This Week’s Closed Transactions

This chart shows the updated weekly closed transactions by property type during the current covid nineteen pandemic.
Weekly closed transactions by property in Maui County, Hawaii during the Covid-19 pandemic. These numbers are a lagging indicator of market demand. Most transaction in Maui County take between 30-60 days to close.

Maui Realtors reported 58 sales over the seven days between October 6th and 13th. That is down 13% from last week. It is 45% higher than the same seven day period of 2019.

This Week’s New Inventory in Maui County

This chart shows weekly new real estate inventory in Maui County during the covid 19 pandemic
This chart shows weekly new real estate inventory in Maui County, Hawaii by property type.

While up slightly from last week, new inventory remained limited. Between October 6th and 13th, 60 new listings came to market. That is 11% higher than last week. It is 23% lower than the same seven day period of 2019.

Of the 60 new listings, 29 are condos. The 29 new condos is less than the 32 condos that went pending this week. This makes for the rare occasion when condo inventory actually decreased during Covid-19. Last week, the difference between new inventory and pending sales was only one. I am reticent to call this a trend at this point, but the condo market is not showing the significant growth in inventory that we saw as recently as August. The questions at this point are how will the reopening of tourism impact demand, and will more condo owners decide to bring their condos to market with visitors back on island.

The 22 new home listings that came on the market is slightly higher than the 19 homes that went pending over this seven day span. As with recent weeks, home buyers shopping at lower price points weren’t likely to notice this modest increase in inventory. The median price of the new home listings came in at $1,375,000 with 25% of the new inventory priced above $2,000,000. The tight inventory in the home market is continuing to put upward pressure on prices.

The 9 new lots that came on the market matched the 9 lots that went pending. The land inventory remains steady. Prices are holding pretty steady with some modest increases in value.

Contact The Maui Real Estate Team

This last week was a big one for Hawaii with the new pre-travel testing program going into effect on the 15th. We know first hand of buyers who are coming to Maui now that there is a pre-travel testing option to avoid tourism. We will continue to keep a close eye on the market to gauge the impact of tourism’s return on the real estate market.

Contact The Maui Real Estate Team if you are thinking of buying or selling property on Maui. Our agents are working closely with buyers and sellers to navigate the dynamic market conditions. We look forward to hearing from you and learning more about your real estate needs.

Pete Jalbert

Maui Real Estate Blog

September 18th Weekly Maui Real Estate Market Update

Time for our latest weekly update on Maui Real Estate market activity. For the seven day period between September 9th and September 15th, new pending sales dipped slightly from the week prior. After a quieter start to September, closed transactions increased. New inventory over the seven days is down from the high numbers we were seeing in August. Keep reading for more details.

This Week’s New Pending Sales

Chart that shows weekly new pending sales by property type in Maui County during the Covid-19 pandemic
Weekly new pending sales by property type in Maui County during the Covid-19 pandemic. New Pending Sales are the best indicator of current buyer demand.

Maui Realtors reported 56 new pending sales over the seven day period between September 9th and September 15th. That is down 7% from the previous seven day period. It matches the 56 pending sales over the same 7 day period of 2019.

Notable Numbers From This Week’s Pending Sales

  • Of the 56 new pending sales, 28 are homes, 24 are condos and 4 are vacant lots.
  • Of the 24 pending condo sales, 13 are located in developments that allow vacation rentals.
  • Four properties over $2,000,000 went under contract between the 9th and the 15th. They include 3 homes and 1 condo. One of the homes is a beachfront estate in Keawakapu listed for $9,800,000.

This Week’s Closed Transactions

This is a chart that shows weekly closed transactions by property type in Maui County
Weekly closed transactions by property type in Maui County, Hawaii during the Covid-19 Pandemic. Closed transactions are a lagging indicator of buyer demand.

Maui Realtors reported 54 sales over the seven day period between September 9th and September 15th. That is a 38% increase over the previous seven day period. It is worth noting that this weeks totals are more in line with recent sales numbers, while last week was something of an outlier. The 54 sales are 8% higher than the same seven day period of 2019. Also of note, Maui set a new highest sales price for the Covid era. A beachfront estate on Kapalua Place sold for $15,500,000.

This Week’s New Inventory

This chart shows weekly new inventory by property type in Maui County during Covid-19
Weekly new inventory by property type in Maui County, Hawaii.

After a massive influx of new inventory in August, weekly new listings are down in September. Maui Realtors listed 59 properties over the seven day period between September 9th and 15th. That is down 16% from the previous seven day period. It is down 21% from the same seven day period last year.

There are 37 new condo listings this week. While not quite the 50 plus new listings a week we were seeing in August, this still is enough to increase inventory. The increased inventory is softening prices in some developments. That said, we aren’t seeing big price drops as many sellers are holding out despite increasing days on market.

There are only 19 new single family home listings over the seven day period between September 9th and September 15th. That is below the number that went pending over the same seven day period. The single family home market on Maui continues to see contracting inventory. That in turn is putting upward pressure on prices.

Only 3 lots came on the market this week. While the inventory of lots for sale is not shrinking to the same extent as the inventory of homes, the inventory levels remain pretty steady.

Contact The Maui Real Estate Team, Inc.

Overall, the Maui Real Estate market continues to be resilient. Remote workers are relocating to the island and there are still local residents buying. We also now have a date for the soft reopening of tourism. The pre-travel testing program starts on October 15th. It is hard to say what kind of boost that could have on the market until we get a better sense of visitor numbers. The Maui Real Estate Team continues to be busy working with buyers and sellers. Contact The Maui Real Estate Team if you are interested in buying or selling property on Maui. We look forward to learning more about your needs.

Pete Jalbert

Maui Real Estate Blog

September 11, 2020 Weekly Maui Real Estate Market Update

And the beat goes on. Buyer activity remained steady over the seven day period between September 2nd and September 8th. Closed transactions dipped. While there was still a pretty healthy amount of new inventory over this seven day period, it didn’t quite match the weekly volume of the four weeks prior. Keep reading below for more details.

This Week’s New Pending Sales

This chart shows weekly new pending real estate sales by property type in Maui County during Covid-19
Weekly new pending sales by property type during the Covid-19 pandemic. New pending sales are a good indicator of current buyer demand.

Maui Realtors reported 60 new pending home sales between September 2nd and September 8th. That is the same exact number as the seven days prior. It is also the same number as the same seven day period of 2019.

Notable Numbers from This Weeks Pending Sales

  • The 60 new pending sales include 25 homes, 26 condos and 9 lots.
  • Of the 26 condos, 21 are in developments that allow vacation rentals. Anecdotally, it seems like the uptick in vacation rental condo activity may be a response to softening prices in some developments. Or it could just be a random fluctuation. We shall see in the weeks ahead.
  • The 9 new pending lot sales included 6 oceanfront lots in Haiku. They are all contiguous to each other. Perhaps it is a single buyer?
  • It was another pretty busy week for luxury real estate buyers on Maui. Seven properties priced over $2,000,000 went under contract between the 2nd and the 8th. The seven properties consist of 3 homes, 2 condos and 2 lots.

This Weeks Closed Transaction Numbers

This chart shows weekly real estate sales by property type in Maui County, Hawaii during the Covid-19 pandemic.
Weekly closed transactions by property type in Maui County, Hawaii during the Covid-19 pandemic. Sales are something of a lagging inventory for market demand. Most transactions in Hawaii take 30-60 days to close after going under contract.

Maui Realtors reported 39 closed transactions between September 2nd and September 8th. That is down 34% from the week prior. It is down 29% from the same seven day period of 2019. Keep in mind that sales are a lagging indicator of buyer demand. I wouldn’t read too much into the more dramatic dip in numbers this week. I think it is something of a random fluctuation.

This Week’s New Inventory

This chart shows weekly new inventory by property type in Maui County during the Covid-19 pandemic.
Weekly new inventory by property type during the Covid-19 pandemic.

Maui Realtors brought 70 properties to market between the 2nd and the 8th of September. That is down 27% from the seven days prior. It is 13% more than the same seven day period of 2019. While there is a pretty big drop in new inventory compared to last week, the fact that we are up over the same time last year provides some context.

Once again, condos were the greatest proportion of the new inventory. The 38 condos that came to market exceed the number that went under contract. We continue to see growth in condo inventory. This is softening prices in the condo developments with increasing inventory.

There were only 23 homes that came to market last week. That is below the number that went pending. The home inventory continues to remain limited. Lack of inventory and continued demand is creating some upward pressure on pricing.

The 9 new lot listings that came to market is equal to the 9 that went pending between the 2nd and the 8th. The inventory of lots for sale remains pretty steady. In general, the steady inventory seems to be sustaining current pricing.

Fall is typically a slower time for new inventory on island. It will be interesting to see how this year stacks up compared to years past. My guess is that we won’t be like a typical year. That said, the Covid era market has defied a lot of my expectations thus far.

Contact The Maui Real Estate Team

Buyer activity on Maui remains pretty strong as we enter the fall. Low interest rates are a factor. It also appears as if we are seeing our share of buyers taking advantage of work from anywhere policies. Those factors are offsetting the head winds of closed tourism and a difficult local economy. We are seeing some variability in market conditions based on property type, location and price point. Contact the Maui Real Estate Team if you are a buyer or seller thinking of entering the market. We look forward to learning more about your real estate needs and offering our market expertise.

Pete Jalbert

Maui Real Estate Blog

Maui Real Estate Market Weekly Update August 28, 2020

New pending sales for the seven day period between August 19th and 25th remained similar to the week prior. Closed transactions jumped back up closer to normals after a quiet previous seven days. New listings are up this week led once again by more new condo inventory. Find out more details on the numbers below.

New Pending Sales

This chart shows weekly new pending sales by property type in Maui County, Hawaii
Weekly new pending sales in Maui County Hawaii during the Covid-19 Pandemic. New pending sales are an indicator of current market demand while closed transactions are more of a lagging indicator.

Maui Realtors reported 54 new pending sales over the seven day period between August 19th and August 25th. That is a modest 4% increase in activity over the week prior. That is 5% less activity than the same seven day period of 2019.

Notable Numbers from This Week’s Pending Sales

  • The 54 new pending sales include 27 homes, 22 condos and 5 lots.
  • While condo sales outpaced pending home sales for about a four week period in July and early August, pending home sales outnumbered condos over the last two weeks. Buyer preference for homes remains higher overall during Covid-19. This mirrors trends in other markets across the country albeit for different reasons. On the mainland a desire for less density and more yard space is hurting the condo market. On Maui, decreased demand for vacation rental condos is hindering condo sales volumes.
  • The 22 condo pending sales include 11 listings in vacation rental friendly condos. Two of the other listings are resort area condos that prohibit vacation rentals.
  • The five pending lot sales are a slight bump over last week but below the weekly numbers in much of July and the first half of August.
  • Maui Realtors reported four new pending home sales on properties listed for more than $2,000,000. One of the new pending sales is for a home in Makena listed for $11,750,000.

This Week’s Closed Transactions

This chart shows weekly closed transaction by property type during the Covid-19 pandemic in Maui County.
Weekly closed real estate transactions in Maui County by property type during the Covid-19 pandemic. Sales are a lagging indicator of market demand with most transactions taking 30-60 days to close after going under contract.

Maui Realtors reported 54 sales over the seven day period between August 19th and August 25th. This is a 46% increase over the closed transactions for the week prior. As mentioned in the opening paragraph, the big increase over the week prior is a reflection of a quieter period between August 12th and 18th and more of a return to normal rather than a bug uptick in sales. The 54 sales is 4% above the same seven day period of 2019.

This Week’s New Listings

This chart shows weekly new listings by property types in Maui County during the Covid-19 pandemic.
Weekly new listings by property type in Maui County during the Covid-19 Pandemic.

There is one thing to note about this week’s new listings. There were a few agents with a significant number of listings who switched brokerages between the 19th and the 25th. When agents switch brokerages, they cancel their listings under the old brokerage and relist under the new brokerage. This leads to an inflated number of “new” listings. I filtered this weeks new listing numbers to make sure I was only counting listings that were truly new to market.

With that caveat out of the way, Maui Realtors reported 89 new listings this week. That is the highest number to date for any week in the chart above. That is 11% higher than the number of new listings for the week prior. It is an impressive 71% higher than the same seven day period of 2019.

Once again, the condo market saw the highest number of new listings with 57 units coming to market. With only 22 condos going under contract over this week, the active condo inventory continues to increase. Many of the condos coming to market are vacation rentals. With no income to offset monthly overhead, some owners are feeling enough pain to go to market.

The higher inventory and motivated sellers are translating to price adjustments and decreases in value. This isn’t true of all vacation rental condo developments. Some with limited inventory are holding value. That said, anecdotally it seems like the number of developments with declining values is increasing. I may need to do a deeper dive into this market over the coming weeks.

The other market that seems to be seeing some downward price pressure is the entry level condo market in Kihei. A lot of owners and tenants in these developments work in the tourism industry. With tourism still shut down and no clear time frame to reopen, this is another area where sellers are experiencing some pain.

Maui Realtors brought 24 homes to market between the 19th and the 25th. That is less than the 27 homes that went under contract. This continues the trend of shrinking inventory for single family homes. The decrease in inventory is sustaining to potentially increasing home values on island.

Maui Realtors listed seven lots between the 19th and the 25th of August. That is a little more than the five lots that went under contract. The recent trend has been towards a slight decrease in inventory. The inventory levels are sustaining current pricing for lots on Maui.

Contact The Maui Real Estate Team

Overall market activity on island remains pretty resilient when you consider the state of the world and the current shape of the Maui economy. Contact The Maui Real Estate Team if you are considering dipping your toes in the waters of the Maui Real Estate market. We look forward to learning more about your needs, and providing guidance on market conditions specific to your needs.

Pete Jalbert