Maui Real Estate Blog

Maui Luxury Home Market Update

Back when I posted the June Statistics, I promised a series of mid year updates on the real estate markets around the island. Mea Culpa. Sometimes, the rest of my work obligations get in the way of blogging. I have only been able to produce updates on Paia and Spreckelsville. Today, I wanted to turn my sights on the island’s luxury home market. Since it is the end of August, we are going to include all of the sales for the year date. We wanted to look at the volume of high end home sales around the island, notable sales and market conditions specific to some of the different neighborhoods and communities around the island.

Just from a methodology standpoint, I am classifying luxury homes as homes priced for $2,000,000 or more. We have used this $2,000,000 threshold for luxury homes regularly throughout our discussions of stats on this blog. That isn’t to say that there aren’t some very nice homes that have sold this year for less than $2,000,000.

Luxury Home Sales Volumes and Median Prices
There were 43 homes sold for $2,000,000 or more between January 1, 2015 and August 22, 2015. The median price of those sales was $3,196,000. Between January 1, 2014 and August 22, 2014, there were 45 homes sold. The median luxury home price for this period of 2014 was $3,800,000. When comparing this year to last year, there was roughly a 4% drop in sales volume and a 16% drop in median price. Just to be clear, the drop in median does not reflect any sort of change in values in the market. It is a reflection of the inventory sold.

Notable Maui Luxury Home Sales for the Year to Date
Here are some notable numbers that I thought were worth passing along from this year’s luxury home sales.

  • The highest priced sale thus far this year was for a home in the Keahou at Makena Subdivision. The 4 bed/ 4.5 bath home with 6,737 square feet of living space is located on 4.23 acres. It sold for a whopping $41,775,000. That isn’t just the high sales price for the year, it is the highest ever sale price for a home on Maui by a significant margin.
  • Including the Keahou at Makena sale, there were 8 sales over $5,000,000.
  • Wailea/Makena and Ka’anapali were the two busiest luxury home markets through the better part of the last eight months. Realtors reported nine sales in both of those markets.
  • Of the 43 luxury home sales for the year to date, 14 sales were either oceanfront or beachfront.
  • The 43 sales were spread among 12 different towns or resorts in Maui County. Hana and Molokai are two communities that haven’t seen all that many $2,000,000 sales over the previous few years, but they each had one $2,000,000 plus transaction this year.
  • The 43 sales included one bank owned property and two short sales.

A Look at Selected Luxury Home Markets Around the Island
The Maui Luxury home market is fairly diverse. Buyers typically focus their search on one or perhaps two areas of the island. With that in mind, we want to look at how some of the different areas around the island performed during the first eight months of 2015.

This chart compares the sales volume of homes over $2,000,000 around Maui County during the first eight months of 2014 and the first eight months of 2015.

Makena and Wailea
The Wailea and Makena area typically sees the most sales activity of any luxury community on island. That rang true during the first half of 2015 as it tied Ka’anapali for the busiest area for closes on the island. Digging a little deeper within the numbers, there were 8 sales in Wailea and just one sale in Makena. Within Wailea, there was a good cross section of neighborhoods that saw activity. There was a sale in Maluhia, a sale in Wailea Highlands, 2 sales in Wailea Golf Vistas, 2 sales in Wailea Golf Estates and 2 in Wailea Kialoa. The sales activity in Wailea was actually up a little from last year. There were 7 homes sold in Wailea proper in the first eight months of 2014.

Makena saw a drop in activity with the one solitary sale compared to 5 sales during the same period the year before. It is hard to say why there was a dip in sales in Makena. Some of that could just be a case of market variability and inventory. The one other factor that could be coming into play is the Makena Golf and Beach Club. This new development spearheaded by Discovery Land Company is located at and around the current Makena Golf and Beach Resort. This new community is set to be Maui’s most exclusive and high end luxury development to date. There are no single family homes for sale in the community yet, but there are some very high end home sites on the market in Maluaka Estates. There has been one lot sold and an additional three lots are under contract. All four lots have prices of $10,000,000 or more. It is possible that some of those buyers may have been potential buyers for other Makena properties. That said, Discovery Land Company is known to have a loyal following that might draw buyers who might not have otherwise looked at Maui.

I thought it was worth briefly revisiting the high sale in Makena. The sale at Keahou smashed the old Maui sales record by $14,700,000. I will be honest, the sales price is something of a head scratcher. The neighboring property is on a smaller piece of land and the house is 1,200 feet smaller, but it is currently listed for sale for $13,400,000. It seems like quite a stretch for there to be a $28,375,000 difference in value between the two homes. As much as it makes the new listing seem like a value, I think it points to the big sale as something of an outlier.

It will be interesting to see what happens over the rest of the year in Wailea and Makena. There is still a fair amount of inventory for buyers to choose from. There are twenty active home listings on the market currently with 7 properties in Makena and 13 in Wailea. Check out the full inventory of Makena and Wailea Homes for Sale on MauiRealEstate.com.

Ka’anapali
Ka’anapali had a pretty strong first eight months of the year with 9 total sales. That is up a little over the seven sales last year. The sales came from six different neighborhoods within Ka’anapali. There were 3 sales in the Pinnacle Neighborhood, 2 in the older section of Ka’anapli Golf Estates, 2 in the Summit at Ka’anpali, and a single sale in both Ka’anapali Hillside and Ka’anapali Coffee Farms. The high sale for the year to date was $3,500,000 for a four bedroom, three and a half bath home with 3,715 square feet of living space on a .65 acre lot in the Pinnacle.

There are 13 homes actively listed for over $2,000,000 in Ka’anapali. That should give buyers who prefer Ka’anapali some pretty good options. You can see the full inventory of Ka’anapali Homes for Sale on MauiRealEstate.com.

Kapalua
Kapalua has been the third busiest luxury home market this year with 7 closes over $2,000,000 for the year to date. All of the subdivisions of Kapalua with the exception of One Kapalua Place have seen sales activity thus far this year. There were 2 sales in Pineapple Hill Estates, 2 sales in Pineapple Hill, 2 sales in Plantation Estates and a single sale in Honolua Ridge. The high sale was $5,700,000 for the Honolua Ridge property. For a price tag of $5,700,000, that buyer now owns a four bedroom, five and a half bath home with 6,509 square feet of living space on a 2.82 acre lot. It has stunning views overlooking the renowned Honolua Bay.

The Kapalua market currently has 29 homes actively listed for sale. This is the biggest inventory of luxury homes of any of the communities around the island. This makes for an excellent selection for potential buyers. That may also allow for some opportunities. Typically, high end sellers have more staying power and will hold out for a premium. That said, you could make an argument that we have already seen a premium property go at a substantial discount with this year’s high sale in Kapalua. The home in Honolua Ridge sold for $4,000,000 below its original asking price and $1,995,000 below the list price at the time that it sold. You can see the full inventory of Kapalua Homes for Sale on MauiRealEstate.com.

Lahaina
There are two parts of Lahaina where high end home sale activity tends to be concentrated. The first is along the oceanfront. Homes along Front Street and Baby Beach typically start over $2,000,000. The other area is just south of the town in the neighborhood of Launiupoko. Launiupoko has been one of the stronger markets for high end sales over the last couple of years. There have been five sales in Lahaina thus far this year. Three of the sales have been in Launiupoko and two have been oceanfront homes. The highest priced sale was $3,500,000 for a 4 bedroom, 4 bathroom residential condominium with 3,675 square feet of living space on 8.513 acres.

There are 16 active luxury home listings for sale in Lahaina at this time. Eleven of the homes are in Launiupoko with the rest located along the ocean. Lahaina is another market where buyers have some pretty good options. Check out all of the current Lahaina Luxury Home listings on MauiRealEstate.com.

Upcountry
The Upcountry area of Maui tends to see fewer high end sales than the resort communities of the island. That said, there are some pretty spectacular estates located along the flanks of Haleakala. Kula and Olinda are places where you will see some bigger acreage estates. There are also some homes along Baldwin Avenue below Makawao that fit the luxury home mold. The first eight months of the year have seen only two sales above the $2,000,000 mark in the Upcountry Area. There was one sale in Kula and one sale in Olinda. Last year, there was just one sale over $2,000,000 in the Upcountry area in the first eight months of the year.

The highest priced sale Upcountry for the year to date was $3,500,000. That was for a 24 acre estate in Olinda. It included a 3,300 square foot, three bed, three bath home and a separate two bedroom cottage. The 24 acres property included three separate parcels of land all with their own water meter.

While there haven’t been a lot of high end home sales Upcountry this year, there has been an uptick in buyer activity over the last two months. There are four homes in Kula listed for $2,000,000 that are currently under contract. That is more than anywhere else on island. There are an additional 16 homes listed for more than $2,000,0000 currently on the market Upcountry. That means a pretty good selection for high end buyers looking for more privacy or a different feel than the resorts or the beach. You can see all of the Upcountry Luxury Home listings on MauiRealEstate.com.

North Shore
The North Shore of Maui has become an increasingly popular location for luxury home buyers over the last five years. Prior to this year, Paia and Spreckelsville was the focal point of high end sales while the Haiku market lagged behind. We saw something of a shift this year. The Spreckelsville market has had limited inventory, Paia has been quiet and Haiku has seen the strongest sales activity since the downturn began. There were three total sales over $2,000,000 through the first eight months of the year. Last year, there were six sales on the North Shore in the first eight month’s of the year. For this year’s sales, two were in Haiku and one in Spreckelsville. The Haiku sales were particularly notable as they were the first and second highest priced transactions for homes in that community. The highest sale was for the 38 acre Baldwin Estate. This historic property includes a 10 bedroom, 10.5 bathroom home with 8,716 square feet of living space as well as a number of outbuildings.

Buyers looking for North Shore luxury homes will find that market conditions are going to vary based on the specific community. Spreckeslville is arguably one of the only true seller’s markets for luxury homes on the island. There are no active home listings for more than $2,000,000. Over the last few years, roughly half of the homes that have sold in this neighborhood have sold before coming to market. Paia has been quiet and it currently boasts the largest inventory of oceanfront homes of any area on the island. I think there may be some values and/ or motivated sellers to be found among those listings. Haiku has seven active listings currently on the market giving buyers some good options. You can check out the current inventory of North Shore Luxury homes on MauiRealEstate.com.

Overall Maui Luxury Home Market Outlook and Thoughts
The Maui Luxury Home market continues to offer a broad cross section of homes for potential buyers. From the privacy of Upcountry Estates to Beachfront Luxury compounds, there is considerable depth of inventory. While a deep inventory typically gives buyers more leverage, that isn’t always the case with the luxury home market. Luxury home owners typically have the means to hold on to properties for longer periods of time and many are less likely to adjust their pricing. That said, there are still bound to be a few sellers out among the current inventory who may have higher motivations. The challenge is finding those sellers.

I would anticipate that the rest of the year will continue to see sales figures at or close to the levels we saw during the fall and early winter of 2014. While projected increases in interest rates have the potential to slow sales activity at lower price points in the market, the majority of the luxury sales involve cash transactions or private banking. The biggest threat to the high end market is the overall economy. If the recent stock market uncertainty continues, you may see some buyers postpone their purchases. Contact The Maui Real Estate Team if you are interested in buying or selling a luxury home on Maui. We would welcome the opportunity to sit down with you for a free consultation to discuss your needs.

Pete Jalbert

Maui Real Estate Blog

Haiku Makai Opportunity

Location, location, location. Yes, I am hitting you with that old real estate cliche right out of the gates on this blog post. This is one of the more desirable neighborhoods in all of Haiku. The climate is warmer and sunnier, and the beaches and other amenities are that much closer when you own a home in Haiku Makai. This is a great location for those who want convenience to North Shore water sports while still looking for a quiet setting and more land. You are a 5 minute jaunt down Hana Highway to the world renowned water sports haven of Ho’okipa Beach Park. Paia Town is just five minutes further down the road. Haiku Town Center is less than five minutes up the hill from the neighborhood. It offers a growing list of amenities including good restaurants, a fitness center, yoga and a new grocery store set to open soon. Families will appreciate the proximity to good schools.

The property is gated and fenced. The three bedroom, three bathroom home has 2,374 square feet of living space. Property amenities include a monier tile roof, hardwood flooring, stainless steel appliances and granite finishes throughout. The home has good West Maui Mountain, ocean and Molokai Views. The pool area is well suited for entertaining and offers a great outdoor living space.

This Haiku Makai home is offered for $1,695,000. Check out the 41 Piialii listing page for more photos and details on the property. Contact The Maui Real Estate Team with questions or to arrange a showing of the property.

Pete Jalbert

Maui Real Estate Blog

Haiku Plantation Style-Well Positioned in the Market

We are excited to announce that the sellers of our listing at 160 Laenani in Haiku have made a nice price reduction right at the start of Maui’s peak home buyer season. This home has four outstanding attributes that make it a compelling offering for North Shore home buyers.

    • Size.This property includes a three bedroom, two and a half bath home with over 3,000 square feet of living space and over 1,100 square feet of additional lanai space. There is also a separate one bedroom/one bath ohana with a carport and a nice covered lanai. The two structures are located on a spacious, fenced and gently sloped two acre lot.
  • Quality. Hardwood floors, vaulted ceilings, lots of built in bookshelves, a sunken living room, granite kitchen counters and stainless steel appliances are just some of the quality features associated with this Haiku home.

 

  • Views. This home boasts beautiful views of the ocean, Maliko Gulch, The West Maui Mountains and the East End of Molokai. Summer Sunsets can be spectacular.
  • Location. It’s tough to find a better location in Haiku. You are about five minutes drive from the Haiku Cannery and Haiku Town Center. There you will find find restaurants like Colleen’s, Nuka, Maui Kombucha, Hana Hou and Veg Out; a small grocery store; a fitness center and a Yoga Studio. The home is just over five minutes from Makawao’s restaurants and shops. Paia is fifteen minutes away and the world renowned Ho’okipa Beach Park is even closer. Families will appreciate all of the good education options that are within in a short distance of this location. This home is located in a nice microclimate within Haiku with not too much rain and cool night time temperatures.

This quality Haiku property is now offered for $1,595,000. Check out the 160 Laenani Street, Haiku listing page for additional photos and details on the property. Contact The Maui Real Estate Team to arrange a showing.

Pete Jalbert

Maui Real Estate Blog

Two Signs of Fall on Maui

It is a sticky rainy day on Maui. Hurricane Ana is passing to the south of the islands. The storm is close enough to bring us grey skies and steady rain, but far enough that there is no accompanying wind. That said, there are few on the island complaining about the weather. The forecast earlier in the week had Ana coming a lot closer and likely bringing some damaging winds. Today’s weather is also a far cry from some of the beautiful fall weather that we have been experiencing. Last week, I saw a couple of signs of fall on Maui that I thought were worth sharing. While we don’t get fall colors and there isn’t a drastic difference in temperature, the signs of fall are clear for those that look.

This first picture captures an image of fall that you might expect to see on the mainland. Then again, I think it is safe to say that this Upcountry Pumpkin Patch has better views than the average mainland pumpkin patch.

The two images above are a distinctly Hawaiian sign of fall. I took these photos at Ho’okipa Beach Park last week during the first High Surf Advisory of the season. Usually during late September or Early October, we see our first big swells of the year on the North Shore of Maui. The national weather service issues a high surf advisory when wave heights of 15 feet or greater are likely. The combination of big swells and steady trade winds brought out windsurfers and kitesurfers to sample nature’s offerings.

Ana is supposed to linger near the Hawaiian islands for a couple of days keeping the chance of rain in the forecast and maintaining humid conditions. By early next week, Ana should clear out and we will have a return to our beautiful fall weather.

Pete Jalbert

Maui Real Estate Blog

Like Hana in Haiku

Opportunity abounds for savvy buyers with this property located on Hogback Road in Haiku. This place evokes the feel of Hana in a convenient North Shore location. It is less than five minutes to the Haiku Town Center, 10 minutes to Hookipa Beach and 15 minutes to Paia. The property consists of 6.24 acres of land situated at the end of a quiet road. A good portion of the land is flat and level. The remainder dips into the dramatic Kuiaha Gulch. An old road that accesses the gulch has the potential to be refurbished opening up additional usable land. There are two homes, a detached garage and two additional outbuildings on the property.

The main home has modern construction with a new roof, deck and exterior paint, open-air design with loft and updated kitchen. The deck is right on the edge of Kuiaha Gulch which makes for a beautiful view looking out over the tree tops.

The second home is single wall redwood construction with a corrugated steel roof. It once served as a ranger station before being relocated to the property. The one bedroom has a large covered porch area that is ideal for taking in the beautiful, lush surroundings. This home evokes memories of old Hawaii.

The property is zoned rural and has a 3/4 inch water meter. It is also on the better half of the waiting list for two additional water meters. The rural zoning, acreage and water situation provide interesting potential. This home is offered through the Maui Real Estate Team, Inc. for $1,295,000. Check out the 999 Hogback Road, Haiku listing page for additional details and photos of the property. Contact The Maui Real Estate Team to arrange a showing or if you have questions on the property.

Pete Jalbert

Maui Real Estate Blog

Unofficial April 2013 Maui Real Estate Statistics

April is a transitional month on Maui. Winter waves become more scarce on the North Shore. The Jacarandas and silk oaks really begin to bloom Upcountry. Mangoes begin to ripen in South Maui and Lahaina. We also see the end of our peak visitor season and the end of our “traditional” peak season for real estate activity. This peak season has seen pretty healthy market acivity. Buyers have been actively seeking out deals and trying to take advantage of the great interest rates available. Demand is no longer the market’s biggest problem. We are now seeing supply issues in quite a few market segments. With all of that in mind, I wanted to provide you with a sneak peak on how the Maui Real Estate market performed last month. Here is some information on sales volumes, sales medians and other numbers that I found to be of interest.

The Sales Volumes for Homes, Condos and Land in Maui County during April 2012 and April 2013
A Comparison of the 2012 and April 2013 Maui Real Estate Sales Volumes for Homes, Condos and Land

By my early count, there were 77 homes sold last month in Maui County with a median sales price of $500,000. The April 2012 numbers were 79 sales at a median price of $469,000. That is a 3% decrease in sales activity compared to last year and a 7% increase in median sales price.

I counted 142 condo sales last month with a median sales price of $369,995. Last April, there were 129 condo sales at a median price of $399,000. That calculates to a 10% increase in activity over last year and a 7% decrease in median sales prices.

Maui Realtors have reported 14 land sales thus far for April 2013 with a median sales price of $497,500. In April 2012, there were 8 land sales with a median price of $365,000. That is a 75% increase in sales activity and a 36% increase in median sales price.

In addition to the numbers reported above, here are a few other numbers that I came across while compiling the statistics that I thought were worth sharing.

  • The high sales price for a home during the month of April was $8,150,000 for an estate property in the One Palauea Bay subdivision in Makena.
  • That was one of four sales over $2,000,000 in Maui County during the month of April. By comparison, there was only one sale over $2,000,000 in April 2012.
  • The highest priced condo sale in Maui County last month was at Honua Kai Resort. A luxurious three bedroom unit at this West Maui beachfront resort sold for $4,450,000.
  • The Honua Kai transaction was one of six condo sales priced over $1,500,000 last month. There were also six condo closes over $1,500,000 in April of 2012.
  • One of the condo price ranges that saw a clear bump in activity was the $1,000,000-$1,500,000 price range. There were 14 sales in that range this year verses only 6 last year.
  • The busiest condos for sales activity were Honua Kai, Hoolea in Wailuku and Wailea Ekahi. Hoolea is a new development that prohibits vacation rentals.
  • There were 13 REO or bank owned sales that closed last month. Last April, there were 21 REO sales. That is a 39% drop in REO sales compared to last April. REO condos have become particularly scarce with only 3 REO closes last month. That is only 2% of the condo sales volume.
  • There were 15 short sale transactions that were completed successfully last month. Last April, there 32 short sale transactions that were completed. That is a 53% decrease in short sale transactions.

The condo market highlighted this month’s stats. The 142 condo sales was tied for the second busiest month in the last five year. The only month to exceed that sales volume benefited from a significant volume of new development closes based on contracts originally signed back in 2005 and 2006. The high volume of sales was driven by increased activity in the vacation rental and second home condo markets. This activity helped to offset decreased activity in the lower price ranges of the vacation rental prohibited condo market. This segment saw sales decrease largely due to decreased inventory. With decreased inventory, the few offerings that came on the market at reasonable prices were snatched up quickly in bidding wars. These dynamics are pushing prices up steadily. The price increases are moving slowly from the bottom of the market to higher price points.

The home market saw a nominal decrease in activity due largely to decreased inventory. Demand is there for properties, but inventory is lacking particularly at or below Maui median sales prices. For example, just looking at Maui and excluding Molokai and Lanai there were 22 sales under $400,000 in April. Last April, there were 30 sales on Maui under $400,000. That is a 27% decrease in activity. Stronger demand at higher price points in the market offset most of the decreased volume at the low end.

What does this all mean for buyers and sellers? What can you expect over the next few months? Busy season may be over, but I wouldn’t expect real estate activity to sag much at all. In general, entry level properties in the different communities around the island are likely to see the most competition amongst buyers. Multiple offer situations are common on well priced properties. You will find pockets of competition in higher price ranges as well. The thinner the inventory, the greater the competition for properties. The competition is causing upward price pressure. Buyers should take steps to have necessary funds available and get pre-approved for financing if they don’t want to miss out on opportunities. Sellers will find that market conditions have turned in their favor in quite a few segments of the Maui Real Estate market. That being said, there are plenty of overpriced properties on the market that are languishing without interest from buyers. Sellers need to evaluate their time frame to sell and recent comparable sales to determine their best pricing strategy.

If you are interested in buying or selling Maui Real Estate, the Maui Real Estate Team would welcome the opportunity to meet with you for a free consultation. If you are interested in buying, tell us about your search parameters and we would happy to find inventory that might meet your needs. If you are thinking of selling, we would be happy to discuss market conditions in your neighborhood, share recent comparable sales and provide an estimate of your properties’ current market value. Contact The Maui Real Estate Team today to get started. We look forward to being of assistance.

Pete Jalbert