Maui Real Estate Blog

Maui Market Musings Volume XV

Welcome to the 15th edition of our market musings. The last musings was a little more of a backwards looking post as we reviewed notable numbers from the June Stats and took a deep dive into the land market during the first half of the year. This edition focuses on statistics that might be better suited to addressing current market conditions. We also take a longer look at the Wailea and Makena markets. We review the first six months of sales activity and take a look at current market conditions and the market outlook. There is a lot to digest in this post so you may want to be suitably caffeinated before proceeding.

Inventory

While June was a month of substantive increases in inventory, thus far the month of July has seen more limited change. The inventory of single family homes is actually lower now than it was on June 30th. At that time, there were 241 active listings. As of July 23rd, the inventory decreased 3% to 234 active listings.

For the condo market, the inventory of active listings increased modestly. On June 30th, the number of active listings was 199. As of July 23rd, the inventory increased 7.5% to 214 active listings.

Maui’s single family home inventory trends appear to be diverging from the rest of the country when it comes to inventory. That said, we are seeing variability in our market place. Inventory and levels of activity vary by price point and community. We should have an updated break down of inventory trends by price point shortly after the first of the month.

Price Reductions

As of July 23rd, 35.04% of all active listings reduced their price at least once. That is up modestly from July 4th when 34.03% of all active home listings reduced asking price.

For condos, 27.57% of all active condos reduced their price as of July 23rd. That is up from 24.63% of condos on July 4th.

We are little bit ahead of the national average when it comes to price reductions, but the number of price reductions appears to be increasing at a slower rate than national markets.

It is interesting to see our rate of price reductions increasing slowly. Prior to the Covid boom, Maui was always a place where sellers tended to be slower to reduce price. Longer days on market were more common. One question we find ourselves asking a lot around the office is what a new real estate normal will look like on island moving forward? Will we go back to typical Maui seller behavior pre-covid or will seller behavior more closely resemble mainland markets? It may take some time to determine the answer to that question.

Quick Sales

Another metric we started tracking earlier in the year is the percentage or properties that go under contract within 10 days of coming to the market. Of the homes and condos listed between July 1st and July 8th, 31.91% went under contract within 10 days of coming to market. That is actually up from June 14th-21st when only 25.37% of listings went under contract within 10 days of coming to market. That said, this is also the first time this year when the percentage of homes going under contract within 10 days was lower than the same period of 2019.

It is also worth noting that there is difference between the home and condo market. Of the homes listed between July 1st and July 8th, 23.53% went under contract within 10 days of coming to market. Of the homes listed during the same seven day period of 2019, 25.81% went under contract within 10 days. The condo market continues to see properties go under contract at a brisker pace. Of the condos listed between July 1st and July 8th, 36.67% went under contract within 10 days. That is just ahead of condos listed during the same seven days of 2019 when 36.11% went under contract within 10 days

Some Quick Thoughts on Current Conditions

It’s a strange market out there. Buyer demand is well below what we saw during 2021 and earlier this year with far fewer properties under contract. That said, inventory levels remain well below normal in most communities around the island. It’s likely that the lack of inventory is one reason why we aren’t seeing more price reductions.

It seems as if there is a little bit stronger demand in the condo market than the single family home market judging by the higher percentage of properties going under contract within 10 days. That comes despite a little more condo inventory coming to market.

Buyers will find conditions less competitive than earlier this year. However, well priced properties in areas and price points with low demand can still generate multiple offers. Overall, sellers can expect longer days on market and fewer buyers. Sellers should be particularly mindful of market conditions specific to their community and price point when pricing their property. It’s also worth remembering that negotiation and give and take is a lot more likely today than it was six months ago.

Wailea and Makena Market Overview

This is the first of a handful of features we will be doing in our market musings looking at specific communities on the island. Today, we are focusing on the resort markets of Wailea and Makena. Its worth noting that I used the term markets plural. While our MLS lumps the two areas together, the two communities have differences that make them unique. Wailea is significantly more developed with large hotels, a shopping center and a lot more neighborhoods and condo complexes. While expensive, the entry point for Wailea is much lower than Makena. Makena is smaller, less developed and has the highest concentration of high priced homes on the island.

Wailea Home Sales

This is a look back at single family home sale activity in Wailea during the first six months of 2022. These are some of the most notable numbers from that time.

  • Maui Realtors reported 17 homes sold in the Wailea Resort in the first half of the year. That is down 43% from the 30 sales reported during the first six months of 2021.
  • Inventory constraints played a significant part in the reduced sales. Decreased demand may be another factor in the second quarter of the year, but it is hard to say definitively.
  • Seven of seventeen sales closed for over asking price. Ten of seventeen sold for asking price or above. Demand was strong for the limited inventory available.
  • Nine of the seventeen sales were reported to be all cash transactions.
  • The median and average price of the homes sold in the first six months of the year is $2,800,000 and $3,478,441 respectively. This is actually down from last year when the median and average price of $3,475,000 and $3,973,168.
  • To be clear, the value of homes in Wailea did not depreciate this year. This shift in medians and averages stems from a difference in the composition of inventory sold. The chart below shows the difference between the first halves of 2021 and 2022. While there were still a fair number of sub-$2,000,000 sales in 2021, there was also a much higher volume of transactions for $4,000,000 and above in 2021. This stems in part from the much lower inventory of homes above $4,000,000 in Wailea this year.
This chart compares sales volume by price point in Wailea during the first half of 2021 and the first half of 2022.
Sales Volume by Price Point in Wailea during the first half of 2021 and 2022. All values on the bottom Axis are in millions.
  • The lowest priced home to sell during the first half of the year in Wailea closed for $2,270,000. That buyer purchased a 3 bedroom, 4 bath home with 2,562 square feet of living space and a pool in the Wailea Kai subdivision.
  • The highest priced Wailea sale during the first half of the year closed for $8,750,000. The home in Wailea Highlands includes 4 bedrooms, 7 baths and 8,657 square feet of living space on just under a half acre.
  • Wailea Golf Vistas experienced the most sales activity with 5 transactions. Wailea Pualani saw the second most sales with 4 transactions.

Wailea Condo Sales

The numbers below are some of the most noteworthy from the first six months of condo sales in Wailea.

  • Maui Realtors reported 77 condo sales in Wailea during the first half of the year. That is down 51% from the 157 sales reported during January-June of 2021.
  • Again, scarcity was a big factor in the decrease in sales. At one point in the first quarter, active Wailea inventory dipped to 6 condos. Some of the difference between the two years can also be attributed to new developer sales in Makali’i. The 2021 sales were boosted by 20 closes in Makalii based on contracts signed 2-3 years prior.
  • Of the 77 sales, 26 or 33.77% sold for over asking price. An impressive 54 out of 77 sales or 70.13% of all transactions closed for asking price or above. Again, this points to strong demand and competition for the limited supply.
  • Maui Realtors reported that 48 out of 77 or 62% of closed transactions were cash purchases.
  • The median and average prices of condos sold in Wailea came in at $1,630,000 and $2,408,720 respectively. The median price increased 20.91% and the average price increased 26.56%. These numbers reflect not only increasing values, but also a greater proportion of high priced transactions.
  • The lowest priced Wailea condo sale during the first part of the year closed for $650,000. That was for a studio unit in Wailea Ekahi.
  • The highest priced condo to sell during the first half of 2022 is located in Wailea Beach Villas. The ground floor unit in the D building closed for $12,500,000. The 3 bedroom, 3.5 bathroom unit includes 2,889 square feet of living space and a private plunge pool.
  • Wailea Ekahi and the Palms at Wailea had the most sales activity of any complex in Wailea Resort to start the year with 14 sales each.

Makena Home Sales

  • Maui Realtors reported 7 home sales in the Makena area during the first half of 2022. That is the same number as what was reported during the first half of 2021.
  • Two of the seven sales closed for over asking price. None of the homes sold for above asking. As you get to these price points, competition decreases and negotiation is more common.
  • The median sales price for the 7 Makena homes sold is $17,200,000. The average sales price came in at $18,825,564. That is a 72% increase in median sales price over last year’s $10,000,000 sale. It is a 35.94% increase over last year’s average sales price of $13,848,071.
  • This year’s low sale came in Makena came in at a $12,875,000. The oceanfront home in Makena Place includes 4 bedrooms, 4.5 bathrooms and 4,304 square feet of living space.
  • The highest priced sale in Makena and the highest sale on Maui for the year to date closed for $26,490,700. That estate includes 8 bedrooms, 8 bathrooms, 10,464 square feet of living space plus a pool house on an acre across the street from the ocean.
  • In terms of activity within subdivisions, two homes closed in Makena Place and two homes closed in One Palauea Bay.

Makena Condo Sales

  • Maui Realtors reported 9 condo sales in Makena during the first 6 months of 2022. That is down 36% from last year’s first half tally of 14 sales.
  • Two of the nine sales sold for full price. No sales closed for above asking price.
  • The median and average prices of the 9 condos sold are $4,000,000 and $4,950,645 respectively. Median increased 42.98% over last year’s median of $2,797,500. The average price increased 26.89% over last year’s average of $3,901,500.
  • The lowest priced condo transaction in Makena closed for $3,250,000 for a 2 bedroom, 2.5 bathroom 2,745 square foot unit at Na Hale O Makena.
  • The highest priced condo transaction in Makena during the first six months of the year closed for $11,256,000. That was a Molokini Residence at the Makena Golf and Beach Club with 5 bedrooms, 5.5 bathrooms and 4,430 square feet of living space.
  • Makena Surf saw the most sales activity during the first half of the year with 4 closes.

Wailea and Makena Market Outlook

Of course all of the sales referenced above reflect past market demand. The million dollar question, or twenty million dollar question in the case of some Makena residences, is what can we expect for the second half of the year? Surprising market behavior over the last two years makes any sort of prognostication a challenge and current economic uncertainty makes it that much harder. That said, it is worth at least touching on both the supply and demand side of the equation.

Wailea and Makena Inventory

On the supply side, there is still some variability by location and property type. There are currently 8 active home listings in Wailea with 4 pending. That is a pretty limited supply considering sales and current pending. It is worth noting that of that supply, a couple of sellers are reaching for some pretty big numbers for their respective neighborhoods. While record highs are normal of late, some of the prices are well above previous neighborhood highs. It is also worth noting that only 3 of 6 subdivisions have active inventory, and 5 of 8 listings are in Wailea Pualani.

There are currently 24 active condo listings in Wailea with 8 pending sales. A quick side note, the pending number does not include the 75 pending new developer sales at La’i Loa at Wailea Hills. This is up quite a bit from the 6 active listings on February 1. That said, it is still less than 2 months supply. Again, when honing in on certain condo complexes the inventory is particularly limited. There are six condo complexes with just 1 active listing and 5 condo complexes with no active inventory. It is also worth considering that 3 of the active listings are seeking prices well above all time highs in their complex. There are a number of other sellers seeking new high prices for their respective location or floor plan in their development.

There are currently 5 active home listings and 1 pending sale in Makena. That’s almost 5 months of inventory based on the first half of the year, but it is worth noting that the 7 sales during the first halves of 2021 and 2022 is pretty extraordinary activity. That makes the 5 active listings a healthy inventory for prospective buyers with the considerable means necessary to shop in this part of the island.

The Makena condo market inventory is literally zero. If you are looking for a place in one of the three condo developments or the Makena Golf and Beach Club, it is a waiting game.

The big unknown is what type of new inventory we may see through the end of the year. Inventory growth in July thus far is negligible.

What about Wailea and Makena Demand?

With Makena and Wailea predominantly second home markets, what type of demand will see from second home buyers in a shifting market? The amount of cash involved with transactions makes the market less sensitive, but not completely immune to increases in mortgage rates. Nationally, second home demand is down according to Redfin reports. What about some of the current market indicators we’ve used for the general market?

Of the eight properties listed in the area this month, two went under contract in less than 10 days or 25%. That is just a hair better than the overall Maui market. Of the current Wailea condo inventory, 29% of active listings reduced their asking price. For Wailea Homes, 28.57% of active listings reduced their price. For Makena Homes, 60% or 3 of 5 listings reduced their price. The Wailea numbers are below what we are seeing for price reductions island wide. The one caveat I might add is that historically, resort market listings are slower to adjust price. The Makena number is high, but it also is worth mentioning that pricing properties in the $10,000,000 plus range comes with its own set of challenges. These are large, very unique custom homes not as well suited to comparative valuations.

Monthly new pending home sales for all the years between 2017 and 2022 except 2020.

One last thing to mention is seasonality. Looking at the chart above, you can see that there is a general seasonality to the market in Wailea Home Sales with more properties going under contract during the first half of the year than the second. The same is true for Wailea condos. Makena is a little more random due to its small sample size. If the market follows typical behavior, we should expect less sales activity this year.

Based on all of the above, the Wailea and Makena markets should see less activity for the remainder of the year due to the combination of market trends, seasonality and limited supply. Barring a massive influx of supply and/or a significant worsening of the current economic situation, the limited supply should keep prices elevated.

You can search through the current inventory of Wailea and Makena Homes for Sale and Wailea and Makena Condos for Sale on our site.

A Little Maui Beauty to Brighten This Post

Contact The Maui Real Estate Team

Congratulations if you made it to the end of this post. It was a long one! It also must mean you are pretty interested in the Maui market. Feel free to Contact The Maui Real Estate Team with questions or for assistance buying or selling property on Maui. We would welcome the chance to be of assistance.

Pete Jalbert

Maui Real Estate Blog

Makena Real Estate Market Update October 2021

Our local MLS groups the adjoining communities of Wailea and Makena together. While the two areas border each other and both offer high end properties, there are enough differences that they are somewhat distinct markets. While Wailea may be a more recognized name nationally and internationally, Makena tends to see the highest home values on the island. The recent addition of Discovery Land Company’s Makena Golf and Beach Club further cemented this beautiful stretch of coastline as Maui’s most exclusive community. Last week, we posted about the year to date market conditions in Wailea. This post looks at the busy year to date of real estate activity in Makena.

Notable Numbers from This Year’s Makena Home Sales

  • Maui Realtors reported 10 home sales in Makena for the year to date as of October 9th.
  • This is quite a contrast from the complete lack of sales activity during the same period of 2020.
  • It is worth noting that this is the busiest January – October period for Makena Home Sales of any year on MLS records.
  • The median price of the ten homes sold is $10,000,000. The average price is $14,151,650.
  • A home in the Keauhou subdivision set the high water mark for sales with a $25,000,000 price tag. The newly constructed 6,561 square foot home sits on 2.496 acres of land across the street from the ocean.
  • This was one of two reported sales to eclipse the $20,000,000 mark in Makena this year.
  • It is worth noting that the coconut wireless is reporting a third unreported sale that came in around $70,000,000. If rumors are correct, the buyer is a rather prominent tech executive.
  • A home that sold across the street from Big Beach was the least expensive sale in Makena this year. The 4,080 square foot home on .71 acres closed for $6,337,500.
  • Five of eleven home sales in Makena this year are beachfront properties.
  • According to MLS records, the Realtors involved reported all sales as cash purchases. It is worth noting that some of these “cash” sales may involve financing in the background with no financing contingencies in the contract.

Thoughts on recent Makena Home Sales and the Makena Home Market Outlook

Like many higher priced home markets around the country, the Makena area experienced robust activity during Covid-19. It just took a little longer for the ball to get rolling. After just one sale in all of 2020, the market really took off after the first of the year. Not only are the 10 sales stronger than any other 9 plus month period, this year’s activity to date is stronger than any full calendar year for Makena on MLS records.

Looking ahead to the rest of the year, inventory figures to be a factor for the Makena home market. At this point in time, there are just two active listings with one home under contract. Barring an influx of new inventory or off market sales, 2021 won’t have too much of an opportunity to pad its record. Assuming there is no drastic change in the overall economic picture, this should be something of a seller’s market as we enter the new year.

Notable Numbers from This Year’s Makena Condo Sales

  • Maui Realtors reported 15 condo sales in Makena as of October 9th. That calculates to a 50% increase in activity over the 10 sales that closed during the same period of 2020.
  • The median price of the fifteen condo sales is $3,050,000. The average price is $3,973,000. This is actually down from last year’s median and average sales price of $5,069,500 and $4,734,275 respectively.
  • Makena Surf was the busiest development for sales activity with eight closes. Na Hale O Makena came next with 5 closed transactions. There were 2 closes at the Kula Villas at Makena Golf and Beach Resort.
  • The highest priced transaction closed for $12,500,000. That was for one of the units at the Kula Villas. It is four bedroom, four and a half bathroom condo with 3,625 square feet of living space.
  • The lowest priced sale closed for $1,500,000. The 3 bedroom, 2.5 bath unit at Na Hale O Makena has a garden view.
  • Nine of fifteen Makena condo sales this year were were cash transactions.
Views from the Lanai of a condo at Makena Surf

Thoughts on the Makena Condo Market

While the fifteen condo sales in Makena may not seem like a lot, the year to date sales are stronger than any similar time period on MLS records. There is a slight asterisk to those numbers in that for much of the MLS history, there was only one or two condo developments in the area. The addition of the Kula Villas means more potential inventory to sell. Nonetheless, this is still a pretty strong year for buyer activity.

Looking forward to the rest of the year, the Makena market isn’t exactly teeming with inventory with four active listings and no pending sales. This will be the biggest constraint on new sales activity for the rest of the year. The Makena Golf and Beach Resort does tend to have a fair number of properties that never make it on to the MLS. We could see a few sales pop out of that development before the end of the year.

Contact The Maui Real Estate Team

Please contact the Maui Real Estate Team if you are thinking of buying or selling property in Makena. Buyers can search the current inventory of Makena Homes for Sale and Makena Condos for Sale on MauiRealEstate.com. Buyers let us know if there is a specific area of Makena that might be of interest. With the limited inventory available, we would be happy to keep our ears open for unlisted properties. For sellers, limited supply and strong demand make the present a great time to be on the market. Feel free to reach out to us for a free consultation and price opinion on your property.

Pete Jalbert

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.

This chart compares looks at the sales in Wailea for the year to date compared with the current active inventory on the MLS.

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.

Kaanapali Condos
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.

This chart compares the year to date sales in the Kaanapali area with the current inventory of Kaanapali listings on the MLS.

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.

Kapalua Condos
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.

This chart compares the year to date sales vs the active MLS inventory for condos in the Kapalua Resort.

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.

Pete Jalbert

Maui Real Estate Blog

Sneak Peek at the March 2015 Maui Real Estate Statistics

The beginning of April means our peak visitor season is wrapping up. It is also time to bid farewell to the bulk of the Humpback Whales that winter in the waters off our coastline. The end of another month also means another opportunity to take a look at how the Maui Real Estate market is performing. This sneak peek at the March Maui Real Estate Statistics includes information on sales volume, median pricing, pending sales, notable numbers and a few thoughts on the stats and the state of the market for buyers and sellers. Without further ado, here are the March numbers.

March Real Estate Sales Volumes and Median Prices

This chart compares the real estate sales volumes for Maui County during March of 2014 and 2015

By my count, there were 83 homes sold in March 2015 at a median price of $625,000. There were 70 homes sold in March of 2014 with a median price of $590,500. That calculates to a 19% increase in sales volume and a 5% increase in median price.

I counted 122 condos sold in March 2015 at a median price of $442,500. By comparison, there were 127 sold with a median price of $420,000 in March of last year. That is a 4% decrease in volume and a 5% increase in median price.

I counted 14 lots sold in Maui county during March with a median sales price of $528,500. That is the exact same number of sales as March 2014 when there were 14 land transactions with a median price of $507,500. That calculates to a 4% increase in median when comparing this March to last March.

Other Notable March Maui Real Estate Sales Numbers
While compiling the sales volumes and median prices, I came across a few other numbers that were worth sharing from the March Maui Real Estate sales activity.

  • The highest priced home sale on Maui in March was $14,500,000 for a beachfront home in Kihei. The 5,682 square foot home is located on a half acre lot directly on Keawakapu Beach.
  • This was one of five home sales over $2,000,000 for the month. In addition to the Keawakapu home, there were sales in Kapalua, Spreckelsville, Olinda and one additional sale in Kihei.
  • The highest priced condo transaction last month was a 3 bedroom, 3.5 bath unit at Montage Kapalua Bay which sold for $3,995,000.
  • It was a busy month of sales for luxury condos on Maui with 13 closes over $1,500,000. There was one additional close at Montage, 4 sales at Honua Kai, 2 at Ka’anapali Ali’i, 2 at Wailea Point, a Wailea Elua, a Na Hale O Makena and a Masters.
  • The highest priced land sale last month was $1,250,000 for a 5.12 acre lot in Launiupoko.
  • There were 12 bank owned sales that closed in March as compared to 4 bank owned sales last March. There were 4 short sales that closed in March compared to 12 successful short sales last March.

Some Quick Thoughts on the March Stats
March saw a resurgence in home sales activity with sales outpacing both last month and the same period last year. The strength of the market varies by price range with homes below and close to the median sales price seeing the greatest amount of demand and activity. While Luxury home sales improved last month, we are still behind the pace of sales for 2014. This is an interesting market segment as there is a lot of inventory providing abundant selection for buyers. That said, it isn’t a true buyer’s market in the sense that there aren’t a lot of really motivated sellers. The majority of home owners in the higher price ranges tend to have additional staying power that thus far has enabled them to hold out for higher prices.

Condo sales activity dipped below the levels that we saw during March of 2014. Overall sales volume is being impacted by a soft middle of the market specifically in the vacation rental condo market. I would surmise that some of the dip stems from a lack of activity among Canadian buyers. The weakened Canadian Currency has put a good number of potential Canadian buyers on the sidelines. You could also argue that some of the decreased activity in the middle of the condo market may be due to inflated asking prices. With demand down, it is surprising to see how many condos are priced well above recent comparable sales. That said, this is another area of the market where seller motivation appears to be lacking. There are quite a few sellers with enough means and sufficient rental revenue to enable them to hold out for higher pricing. The lower price points of the market continue to see pretty healthy demand. The high end of the market condo market was particularly strong last month with 15 sales over $1,500,000. There is a good selection of high end condos on the market and buyers appear to be taking advantage of the quality available.

The land market continues to chug along at about the same clip as what we were seeing in 2014. Limited financing options and a lack of inventory at lower price points have been the biggest constraints to increased sales activity.

March Maui Pending Sales
Sales are always a lagging indicator of current demand. With that in mind, we started tracking pending sales in our monthly statistics posts. Here is a comparison on what we were seeing going under contract in March of 2015 compared to March of 2014.

This chart compares pending sales in Maui County during March of 2014 and March of 2015

It appears as if March was a pretty strong month for buyer demand for all but land, as both home and condo pendings outpaced what we saw in March of 2014. It is good to see the last full month of buyer’s season end on a good note. It will be interesting to see if the market sustains itself as we transition out of peak buyer’s season later in April.

What Does it Mean for Buyers and Sellers?
Maui market conditions have not seen any significant changes throughout our peak winter sales season. Buyers will find that market conditions vary pretty widely based on price point and geography. The greatest competition among buyers is occurring at or below the median sales price for each community. That said, buyers shopping at higher price points may find that well priced properties can go quickly at almost any price point. It all depends in part on demand within the specific community. As a result, buyers should prepare themselves so they can act quickly when the right opportunity comes along. We strongly advise buyers who will need financing assistance to get pre-approved prior to their search. Prospective Sellers should consult with a Realtor to better understand market conditions specific to their neighborhood and community. While some parts of the market are strong, other parts still have a glut of inventory. Sellers who want to sell quickly should take a strong look at depth of inventory and recent sales prices when developing their go to market pricing. Contact The Maui Real Estate Team if you have questions about buying or selling property on Maui. We would welcome the opportunity to sit down with you to learn more about your real estate needs.

Pete Jalbert

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.

This chart compares the real estate sales volumes for homes, condos and land in Wailea and Makena during 2013 and 2014

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. .

Pete Jalbert

Maui Real Estate Blog

The May 2014 Maui Real Estate Statistics

June is the middle of fruit season on Maui. Local mangoes, lychee and lilikoi can all be found in farmer’s markets and grocery stores. June is also a month of Festivals and celebrations with the Wailea Film Festival, the Kapalua Wine and Food Festival, The Slack Key Guitar Festival at the MACC and more. The start of June also means that it is time to take another look at the performance of the Maui Real Estate market. We take a look at last month’s sales volumes, median sales prices and a few other notes and numbers from May sales activity. Sales are a lagging indicator that don’t reflect current demand so we also wanted to take a look at the number of properties that went under contract last month. Without further ado, here are the real estate sales numbers for May on Maui.

A Comparison of Real Estate Sales Volume in Maui County during May 2013 and May 2014

This chart compares real estate sales volume on Maui during May 2014 and May 2013

By my count, there were 85 homes sold in Maui County last month with a median price of $540,000. By comparison, there were 109 homes sold in Maui County during May of 2013 with a median price of $549,000. That is a 22% drop in sales activity and a 2% drop in median price compared to last May.

There were 116 condo sales reported in May of 2014 with a median price of $476,000. Last May, there were 139 sales reported in Maui with a median price of $380,000. That is a 17% drop in sales activity with a 25% jump in median price when comparing this May to last May.

There were 20 land sales reported in May at a median price of $575,000. In May 2013, there were also 20 sales with a median of $267,500. That is a 215% increase in median price.

While compiling the numbers above, I came across some more numbers and data from the May Maui Real Estate Sales that I thought were worth sharing.

  • The highest priced home sale last month was $3,150,000 for the Rainbow House in Ka’anapali Coffee Farms.
  • That was one of five home sales over $2,000,000 last month. The other four sales were geographically diverse with closes in Haiku, Launiupoko, Wailea and Maui Meadows.
  • The highest priced condo transaction was $5,000,000 for a beachfront unit at Coconut Grove in Kapalua.
  • That was one of 15 condo sales over $1,500,000 last month. Honua Kai Resort led the way with seven sales over $1,500,000. There were also two sales at The Whaler, one sale at Ka’anapali Ali’i and one sale at Ka’anapali Shores. The Ka’anapali area condos were a hot ticket for luxury buyers. The other big sales occurred at Kapalua Bay Villas, Wailea Point and Na Hale O Makena.
  • The highest priced land sale last month was $1,600,000 for 42 acres on the ocean between Wailuku and Kahakuloa.
  • There were only 8 bank owned closes all of last month. That is down 50% from the 16 bank owned closes we saw last May. Buyers looking for bank owned bargains will find that the pickings slim.
  • There were 10 successful short sales last month. That was done 58% from the 24 completed in May of 2013.

The thing that stands out most to me about this month’s stats is the drop in sales activity. As noted in the April stats, there was a drop in the number of properties that were pending in April as compared to the same time last year. That makes the drop in sales a little less of a surprise. We are also mirroring some trends that have been occurring on the mainland. The National Association of Realtors Reported that April existing home sales were down 6.8% compared to the same time last year. It is hard to pinpoint all of the factors that have led to the drop in sales activity in Maui County. That said, I think a significant driver has been the lack of inventory. The decrease in homes and condos at lower price points in our market has meant not enough supply to meet demand.

There were a few other things worth noting about the stats. The median sales price was down a little from last year. That seems counter intuitive with less low end inventory and clear signs of price reductions. The bigger driver may be a little less activity on the high end of the market. There were 7 fewer sales this May compared to last May over $1,000,000. On the other end of the spectrum, the condo medians were way up this month. Some of that gain could be attributed to price increases. The rest is due to shifts in market activity. Less inventory on the low end plays a part as does a big increase in activity on the high end. There were 26 condo sales over $1,000,000 this year compared to 12 last year. That is in spite of a 17% drop in overall condos sold. The huge jump in land medians can be attributed to a decrease in low end sales, an increase in high end sales and modest price increases. The small sample size for land sales contributes to big fluctuations in medians.

Does it look like the slow down in sales activity will continue into the summer? Right now, the numbers are mixed. The chart below compares the number of properties that went under contract in May of 2014 to what went pending last year in May of 2013.

A comparison between the number of properties that went pending in May of 2013 and May of 2014

It looks like we might see an uptick in home sales. Home pending sales were up a whopping 27% over last May. While condo numbers appear to be continuing their recent drop in activity with a 21% drop in pendings. Land pending sales were down 55% compared to last May. I did a little digging behind that number and some of that difference can be traced to a solid number of commercial land listings that went under contract last May. Commercial and residential land are lumped together in our MLS. It will be interesting to see what happens with activity as we move into the summer months. It is safe to say that Maui is experiencing an unpredictable market.

What does this all mean for buyers and sellers? Buyers will find that prices are still below peak market levels in all but a very few neighborhoods around the island. That said, buyers will also find that we have seen significant appreciation from the bottom particularly at the lower price points of the market. Those that are expecting to find rock bottom deals will be challenged by the limited inventory and the smaller number of distressed and bank owned properties. Buyers should expect that well priced properties will go under contract quickly. If it is in a particularly desirable part of the market, those properties may attract multiple bids. Sellers should expect improving market conditions, but those that are swinging for the fences on their prices may be disappointed. Overpriced properties are sitting. There are also some communities and price points that are softer than others. Go to market pricing strategies should take into account recent sales prices and activity levels. Contact The Maui Real Estate Team for a free consultation to discuss the specific market conditions for the communities and price ranges that fit interests and budget. We welcome the opportunity to be of assistance.

Pete Jalbert