Maui Real Estate Blog
August 2021 Paia Real Estate Market Update
We thought it might be a good time to check in on the Paia Real Estate market. Our office is based in this North Shore beach town. Paia’s real estate market consistently sees strong demand and limited inventory. Demand stems from the combination of the town’s charms, amenities and its proximity to fantastic ocean sports. It is known for surfing, windsurfing, kite surfing, foiling, stand up paddling and more. The limited inventory is due in part to constrained housing supply. Bordered on one side by ocean and the other three sides by agricultural land, there isn’t much room for growth. The total supply of homes grew only slightly since the early 2000s. Prior to Covid-19, the market experienced lower sales volume due to limited inventory. Activity remained limited during the first half of 2020 with momentum building over the last few months of the year. For the first seven months of 2021, activity surged with the most closed transactions since 2018.
This post looks at the activity for the year to date in Paia. it is worth noting that our local MLS lumps, Spreckelsville, Paia and Kuau together. The focus of this post is just on the Paia and Kuau area. We posted on Spreckelsville 2021 market activity in July.
Paia Real Estate Market 2021 Notable Numbers
- Maui Realtors reported 18 homes sold during the first 7 months of 2021. This is well above the sales volumes over the same periods of both 2019 and 2020.
- The median price of the homes sold is $900,000. The average price is $2,129,832.44.
- The lowest sale price in the community for the year is $705,000 for a home in the Skill Village neighborhood. It has three bedrooms, two and half bathrooms and 978 square feet of living space on a 6,739 square foot lot.
- The highest priced transaction for the year to date is $9,100,000 for a 7,660 square foot home and a 936 square foot cottage on a 1.28 acre oceanfront lot in Kuau. That is the highest ever sales price for a home in Paia or Kuau.
- We also saw the highest ever sales price for a non-oceanfront home in the Paia and Kuau area. A 2.2 acre compound across the street from the ocean with a 3,171 square foot home, a 989 square foot cottage and two pools closed for $8,375,000.
- The Skill Village neighborhood had the most sales activity of any neighborhood with 7 sales for the year to date.
- In addition to the 18 homes sold, there are an additional 6 pending sales at this time.
- There were also two condos at Kuau Plaza that closed in the first 7 months of the year.
As mentioned above, Skill Village saw the most sales activity of any neighborhood in the Paia area. Skill Village typically is the most accessible neighborhood by price in the Paia area. The strong demand for entry level homes in the community helped push up pricing. The three all time highest sales prices in Skill Village all happened during the first six months of 2021. They include a new neighborhood high price of $900,000.
Skill Village wasn’t the only entry level neighborhood with higher activity levels. The Paia Halealani neighborhood had 3 sales. While that doesn’t sound like a lot, this subdivision located between North Shore Village and the Paia Community center typically doesn’t see much in the way of activity. Only 3 homes sold in the five years prior to 2021. Sales prices also went up substantially. A home that closed for $1,200,000 shattered the previous neighborhood high sale.
On the other end of the spectrum, there wasn’t much activity in Kuau Bayview with just one listing and one sale. This is typically one of the more in demand neighborhoods in Paia, but there just aren’t many sellers at this time.
While not a neighborhood per say, I wanted to touch on activity in the Paia oceanfront market. There were two ocean front sales in the first seven months of the year. There are two additional oceanfront properties under contract. As mentioned above, the one oceanfront sale set a new record high for the Paia and Kuau area excluding Spreckelsville.
Outlook for the Rest of 2021
While the Maui market isn’t quite as frenzied as the first few months of 2021, it is still a strong seller’s market. Demand in the Maui Real Estate market remains steady. Well priced properties are still tending to go under contract quickly with multiple offer situations common. At this point, supply is likely to have the biggest impact on sales for the rest of 2021 in the Paia and Kuau area. Like many parts of the Maui market, inventory levels are well below normal. There are currently 16 homes listed for sale and 6 of those are already under contract. The remaining 10 include 4 over $7,000,000 and just 2 under $1,000,000. Buyers looking at the entry levels for Paia will find that inventory is particularly limited.
Some mainland markets are starting to see supplies slowly creep up. On Maui inventory remain at or near all time lows. It will be interesting to see if and when we might see inventory levels start to increase in Paia. Supply constraints were impacting market activity prior to Covid. My suspicion is that inventory will be slower to rise in Paia.
Contact The Maui Real Estate Team if you are interested buying or selling property in Paia. The Maui Real Estate keeps close tabs on our back yard market. We would welcome the chance to discuss your real estate needs.
Maui Real Estate Blog
May 2019 Paia Real Estate Market Update
It has been a while since we checked in on the Paia Real Estate Market. Paia town on Maui’s North Shore is where The Maui Real Estate Team office is located. It is one of our office’s core markets. This town has consistently seen strong demand and limited supply. The combination creates steady upward pressure on pricing. This post looks at market activity in the community during the second half of 2018 and the first four months of 2019.
One thing to note. Our local MLS groups Paia, Spreckelsville and Kuau together. We have always thought that Spreckelsville is its own market. As a result, this post looks at Paia and Kuau only. We provided a market update on Spreckelsville in February.
The map above shows sales market activity in Paia and Kuau between July 1, 2018 and May 1, 2019. The red pins represent sales. The yellow pins represent pending sales. The green sales represent active inventory. You can click on individual pins for more details on sales.
Paia Sales Summary
- There were 11 homes and 3 condos sold during the last six months of 2018. By comparison, there were 8 homes and one condo sold in the second half of 2017.
- The median price of the homes sold in the second half of 2018 was $878,000. The median price of homes sold in the same period of 2017 was $747,000.
- During the first four months of 2019, six homes and two condos sold. During the first four months of 2018, there were eight homes sold.
- The median price of the homes sold during the first four months of 2019 is $1,079,062. The median prices for the homes sold in the first third of 2018 was $800,000.
- The high sale for the first four months of 2019 is 50 Kai Place. This home and ohana is located on a 12,166 square foot lot on the ocean side of Hana Highway. The value may have been higher to the purchaser than the general market as it provides a potential second access point to the buyer’s oceanfront property. It closed for $2,150,000.
- The high sale for the last six months of 2018 is 116 Kuau Beach place. This oceanfront property consists of two homes on a lot of approximately 16,335 square feet. It sold for $3,500,000.
- The lowest priced home to sell during the first four months of 2019 is 514 Pahi Ka Street in Skill Village. This four bedroom, two and a half bath home with 1,670 square feet of living space sold for $649,000.
- The lowest priced home to sell in the last 6 months of 2018 sold for $350,000. This home, located located behind Cafe Des Amis, was in very poor condition. It was recently renovated and went under contract for $575,000 before it went to market.
Sales Activity in Specific Paia Neighborhoods
Three sales closed in Kuau Bayview between July 1, 2018 and May 1, 2019. More accurately, all three sales closed in the second half of 2018. That is a slight uptick over the two sales that occurred over the same period between 2017 and 2018. While we haven’t seen any sales in the $900,000 plus range as we have in the previous couple of years, that is more due to the size and location of the units that have sold. This neighborhood continues to see strong buyer demand due to its location and general pride of ownership.
Sales activity has been higher in Skill Village than any other neighborhood in Paia over the last five years. Some of that is due to the size of the neighborhood. It is also due to relative affordability. It typically offers some of the lower priced homes in Paia. Four homes sold in the neighborhood between July 1, 2018 and May 1, 2019. That is a slight dip from the five homes that sold in the year prior. Sales seem to be slowing due to a limited supply of inventory. The decreased inventory is helping to push prices up further.
Kuau Plaza, the thirty unit condo in Paia, saw a fair amount of sales activity with three sales in the last half of 2018 and two sales in the first four months of 2019. There is one additional condo in Kuau Plaza that is currently under contract. Units in the building tend to sell quickly when they come on market. The fact that you can vacation rent these condos legally helps boost demand for the property. That is particularly the case with the recent additional restrictions on vacation renting single family homes on island.
Only one oceanfront home sold in Paia since July 1, 2018. That is down quite a bit from the five sales over the same period of 2017-2018. Some of that stems from lack of inventory. There are only three oceanfront homes on the market at this time. Two of those homes came to market after January first. Oceanfront homes tend to spend more time on the market.
Overall Thoughts on the Statistics and the Paia Market Outlook
Looking at all of the numbers above, the median sales price for the first four months of 2019 is the most striking. Paia broke the million dollar median barrier. The median is driven in part by an increase in values, but also due to a lack of lower priced inventory. At this point, the lowest priced sale for the year is $649,000. I would anticipate that homes priced under $700,000 will remain scarce through the year which will continue the trend of high median sales prices.
If the overall economy continues on its current trajectory, values will continue to push upward. That said, I would not be surprised to see the rate of increase moderate. Homes in Paia are becoming increasingly inaccessible for the average island resident. If prices push up much further, I surmise it will be due to off island vs. local buyers.
Maui Real Estate Blog
Paia 2016 Real Estate Market Year In Review
Paia town is home base for the Maui Real Estate Team. It also happens to be one of the more in demand real estate markets on island. A bohemian vibe, Plantation town charm, access to great water sports, galleries, good restaurants and shopping have made this little town internationally renowned. We want to take a look back at how the Paia market performed in 2016 and how it might perform in 2017.
One quick note, typically the Spreckelsville neighborhood is lumped in with Paia when people talk about Paia real estate. We believe Spreckelsville is somewhat unique within Paia and opted to exclude it from this overview. We did a separate Sprecks market update at the end of 2016.
The map above shows the 2016 sales as well as the one 2017 sale that was based on a contract from 2016. You can click on individual pins on the map for additional details on the sales.
Looking back at the year in sales, there were some notable numbers that I think are worth highlighting.
- There were 31 homes sold in Paia and Kuau during 2016 with a median sales price of $600,000 and an average sales price of $1,119,216. In 2015, there were 26 home sales with a median price of $587,000 and an average price of $701,942. That is a 19% increase in volume, a 2% increase in median price and a 59% increase in average price.
- The highest priced home sale was $6,000,000 for an oceanfront estate in Kuau. The property consists of a 4 bedroom, 4.5 bathroom home with 6,258 square feet of living space and a 1 bedroom, 1 bathroom cottage with 1,050 square feet of living space on approximately 1.283 acres of land. Last year, the high sale was $2,995,000 for a single family oceanfront home on Kuau Point.
- This year’s high sale was one of three transactions to close for over $4,000,000 in Paia and Kuau during 2016. All three properties were oceanfront.
- The lowest priced home sale was $455,000 for a 3 bedroom, one bath house with 1,104 square feet of living space on a 6,791 square foot lot. This home is located in the Skill Village Neighborhood. The 2015 low sale was $345,000 for a three bedroom, one bath home with 1,080 square feet of living space on a 6,599 square foot lot.
- There were three condo sales in 2016 at Kuau Plaza. Kuau Plaza is the only condo in the Paia/Kuau area. The highest of the three sales closed for $325,000.
- There was one land sale in Paia in 2016. This oceanfront .432 acre lot closed for $2,950,000. There were no land sales in Paia in 2015.
- There were no bank owned properties or successful short sale transactions that closed in Paia during 2016.
While the numbers above give you a glimpse into market activity in Paia and Kuau as a whole, I also wanted to take a look at some of the individual areas and neighborhoods around Paia.
Kuau Bayview has been one of the strongest performing neighborhoods on the island. It was setting all time high prices before any other neighborhood on the island during this market cycle. The neighborhood holds a lot of appeal to buyers due to location, walkability, consistent pride of ownership and in some cases views. Last year was another strong year for the neighborhood. Record sales prices were set not once but three times. The current record high of $952,000 pushes Kuau Bayview pretty close to the $1,000,000 threshold. In addition to the three high sales, there were two other smaller floor plan sales. The five total sales for 2016 was up sharply from the single sale in 2015. That said, it is worth noting that sales volume in this neighborhood tends to be more of a reflection of available supply instead of demand.
North Shore Village
North Shore Village was the last new development built in Paia. It is hard to believe that it was completed 14 years ago. There were only two sales in the neighborhood in 2016, but one was quite notable. 21 Hoku sold for $750,000. That is a new record high sale by a considerable margin. It sold for 13% more on a cost per square foot basis than the other sale in the neighborhood which only closed 4 months prior. On a cost per square foot basis, it was 19% higher than the previous neighborhood high sale. It will be interesting to see if that will be the new standard or if that sale is viewed as an outlier by future buyers.
Skill Village is another neighborhood that had a record high sale in 2016. A four bedroom, three bathroom home sold for $680,000 in September. It also remains the busiest neighborhood in Paia for sales volume. This was the second straight year with 9 transactions. While the recent high sales price may suggest otherwise, Skill Village provides the most opportunity for buyers who want to get into Paia for below the island’s median sales price for homes.
While Paia has seen a strong real estate market since the start of the recovery, Paia oceanfront has been slower. There has been a lot of inventory and relatively few sales. We saw a change in dynamics during 2016. After just one sale per year in 2014 and 2015, we saw four transactions in 2016. There were three oceanfront home sales and one land sale.
2017 Market Outlook
After a strong 2016, the big question is what should we expect during 2017 in the Paia Real Estate market. There are few things that I think will drive the market.
Inventory tops the list of market drivers. Island wide, we have seen home inventory shrink. Paia is seeing a more acute decrease in active listings than most other parts of the island. There are currently only 14 active home listings in Paia and Kuau. Three homes are currently under contract. Of the active listings, only five listings are priced less than $1,000,000. The one home priced for less than $500,000 is a short sale facing foreclosure. It also happens to have four additional liens on the property. The lack of available inventory makes it hard for me to imagine that we will come close to last year’s sales volume.
Low inventory and continued demand are a dynamic that is likely to provide continued upward price pressure in the Paia market. Interest rates are something that could prove to be a counterweight to the lack of inventory. Conventional wisdom suggests that we are going to continue to see increases in rates throughout the year. If that comes to fruition, I would suspect that might limit the increase in values particularly in the bottom of the half of the market. Entry level buyers face a tough barrier with current pricing in Paia. Increases in rates will make the cost of ownership that much higher.
We may also look at recent market history for a forecast of the future. Paia has seen significant appreciation since the last downturn, but appreciation has not been linear. If I were to chart values over the last four years, it would likely look like a stair case. Strong increases in value were followed by a pause in values as the market would seemingly catch its breath. Kuau Bayview is a good example of this dynamic. That neighborhood saw a series of record high sales in 2013. The next year and most of 2015 were pretty quiet due to a lack of inventory and sales. As mentioned above, 2015 saw the neighborhood high sales mark broken three times. If the pattern continues, we might see a quieter 2017.
One segment that will be interesting to watch is the oceanfront home market. This price range tends to be less interest rate sensitive due to the higher percentage of cash transactions. The last year was the strongest year since the downturn and one of the strongest overall historically for Paia and Kuau Oceanfront. Part of that stems from sellers adjusting to the market. The high sale for the year closed well below replacement cost. There is currently one oceanfront home under contract, and sellers have continued to adjust their pricing hoping to find the market. I would anticipate the oceanfront market might remain more active particularly if sellers continue to adjust prices.
The Future of Paia Real Estate
The strength of the Paia market over the last 15 years has been a simple case of supply and demand. Demand has only increased over the years as the town has become more and more renowned. Paia has made a couple of lists for the Best Beach Towns in America. Numerous other publications have cast the spotlight on Maui’s hip beach town. For each new article, there seemed to be more buyers of Paia real estate. All the while, supply has been practically unchanged since North Shore Village was built back in 2003. The town’s growth has been limited by the surrounding cane fields. The closing of the sugar plantation in December of 2016 may mean the end of that growth barrier.
There has already been one large parcel of land sold to the West of town. A 340 acre parcel directly to the West of Paia sold for $9,900,000 in January. The agriculturally zoned land is on the Mauka (Mountain) side of Hana Highway. The land runs from the town’s parking lot and mini bypass up towards the mill and heads West towards Baldwin Beach Park. Plans for the land have not been presented to the public. The coconut wireless has suggested 16 high end agricultural lots with the potential for mixed use development along Baldwin Avenue closer to the mill. I don’t anticipate that development will happen quickly. The subdivision process can be lengthy on Maui. If any rezoning is done, that could lead to additional delays.
While we are unlikely to see changes over the next couple of years, the cane fields may no longer serve as a limitation for growth. Some of this cane land will become ranch land. Still more areas could be sold off for future development.
Buying and Selling Paia Real Estate
You can see all of the Paia Area Real Estate Listings on MauiRealEstate.com. Our office is located in the heart of town in Paia Plaza at 71 Baldwin Avenue. Our agents live in the area and have decades of experience in this market. We watch the market closely and keep our ears to the ground for properties coming up for sale. Contact The Maui Real Estate if you are interested in buying or selling in Paia.
Maui Real Estate Blog
Paia 2014 Real Estate Review and 2015 Outlook
Just a few days ago, we posted a year end review and 2015 outlook for the Spreckelsville Neighborhood. Today, I wanted to take a look at the town of Paia and how its real estate market performed in 2014. We also wanted to give some thoughts on what might be expected of this market during 2015. Spreckelsville is actually a part of Paia, but we split the two communities in our analysis because of the relatively unique characteristics of the respective markets. That means this post will focus exclusively on Paia and the Kuau area of Paia.
Paia has been one of the stronger real estate markets on the island since the downturn. Simple supply and demand plays a factor in the strength of Paia’s housing market. There has been no new housing created in the Paia area since the construction of North Shore Village in 2003. Since that time, Paia has seen demand grow considerably as more and more people have sought to relocate or buy second homes in this funky North Shore Beach town. Buyers are attracted to the bohemian vibe, good restaurants, yoga studios, cute boutiques, the island’s best health food store and some of the most consistent wind and waves on the planet for water sports. The demand for Paia Real Estate was particularly evident in 2013 when some neighborhoods in the area hit new record highs. Did Paia continue at those same levels in 2014? Find out below as we give you the numbers.
The map below shows all of the sales that occurred in Paia and Kuau area during 2013. Click on the individual pins on the maps to learn more details about the sales.
There were a few notable numbers from the 2014 Paia sales figures that I thought were worth sharing.
- There were 18 homes sold in Paia during 2014. That is down from the 20 homes sold in 2013. That is a 10% drop in activity.
- The median sales price for homes in Paia during 2014 was $634,750. The 2013 median was $678,500. That is a 6% drop in median price.
- There were three condo sales at Kuau Plaza in 2014. There were three condo sales at Kuau Plaza in 2013.
- Kuau Plaza appears to have seen very strong growth in values during the year. The only one bedroom that sold in 2013 closed for $200,000. All three sales in 2014 were one bedrooms and their median price was $279,000. That is a 40% increase in median price. In this case, the change in median is pretty closely correlated with the change in value.
- There was only one land sale in 2014 compared to four land sales in 2013. Vacant Land is in finite supply in Paia. If we are to see any more than one sale a year, it will likely come from the flip of recently sold lots.
- There were two short sales and one bank owned transaction in Paia during 2014. There was one bank owned sale and one short sale in 2013.
There are a couple of things that deserve comment regarding the Paia market in 2014. After a frenetic 2013 that saw big price increases and a strong market recovery, things appear to have leveled off a little in 2014. This was evident in slightly lower transaction volumes and to some extent the lower medians. It is even more evident when you look at a neighborhood like Kuau Bayview. That market was in a frenzy in 2013, but buyers were reticent to push prices in 2014. This is in line with what we predicted during our Paia 2014 Outlook. In some ways this is a relief, as it would have been unsustainable in the long term to continue at higher rates of appreciation.
The Paia luxury market was relatively quiet this year with only two sales over $2,000,000. More of the high end sales activity was occurring down the road in Spreckelsville during 2014 where there were five sales over $2,000,000.
It will be interesting to see what happens with the market in 2015 in Paia. The map below shows the current inventory and the sales that we have seen in the year to date. Green dots represent active listings. Yellow pins show properties that are currently under contract and red dots are sales that have closed this year. You can click on each of the pins for additional details.
It appears as if 2015 is off to a pretty solid start with three homes sold and an additional four properties under contract. There was one notable sale in Kuau Bayview with a new record high sales price established. I would expect that we will see similar dynamics to what we experienced last year with relatively modest price appreciation. If sales continue at their current pace, we should see more closes than we did in 2014.
It will be particularly interesting to watch the luxury and oceanfront home market in Paia. There are more oceanfront homes for sale in Paia than any other community on island. That gives potential buyers a lot of options. It is notable that there are no oceanfront homes for sale in Spreckelsville. Unless that changes, that might divert more potential high end buyers to the Paia and Kuau area.
The Maui Real Estate Team’s office is located in the heart of Paia. We know the community and its real estate inventory well. Contact The Maui Real Estate Team if you are interested in buying or selling property in the Paia area. We would welcome the opportunity to discuss your real estate needs and offer a free consultation. You can check find the current inventory of Paia Real Estate Listings on MauiRealEstate.com.
Maui Real Estate Blog
Paia Real Estate 2013 Midyear Market Update
This is the third post in our series of articles looking at the Maui Real Estate market midway through the year. We have already published a midyear Maui Real Estate market update and a Haiku Market update. Today, we are taking a glance at the Paia real estate market. Paia is situated on the North Shore of the island and is known throughout the world as a mecca of wind and water sports. Athletes from all over the world are drawn to the combination of wind and waves that make this a premier destination for windsurfing, kiteboarding, stand up paddling, surfing and big wave surfing. You don’t have to be a big wave rider to enjoy Paia Town. The town has a bohemian vibe, great shopping, good Yoga facilities, very good restaurants, natural beauty, the best little heath food store on the planet, proximity to good schools and a better sense of community than the resort areas on the island.
The Paia Real Estate market consists of three geographic areas. Going from West to East, the Spreckelsville Neighborhood runs from right next to the airport all the way to Baldwin Beach. It is home to the Maui Country Club and three main beaches. The community is an ideal gateway for the beach lifestyle with a good walking beach, windsurfing, kiting, surfing, body boarding and SUP. Many residents own golf carts so they can bring all their toys down to the beach. Real estate options include executive homes near and on the golf course, two acre compounds with beach access, beachfront estates and the North Shore’s only luxury condominiums. Heading further east, you get to Paia town proper. Paia town is an eclectic mix of older plantation homes, 1970s and 1980s vintage entry level homes, newer town homes in North Shore Village and a smattering of beach and oceanfront homes. As you head past Paia town towards Mama’s Fish House, you get to the Kuau area. Kuau includes the neighborhood of Kuau Bayview, an interesting mix of homes on the Mauka (Mountain Side) of Hana Highway and more high end homes along the Makai (ocean) side of Hana Highway.
The numbers below include information on sales volumes and median sales prices in the Paia area for the first six months of the year. I also included some other noteworthy numbers I came across along the way while compiling these stats. These are followed by a look at how the sales broke down by price point, the current state of the market and what we might expect for the rest of 2013.
During the first six months of 2013, realtors reported 14 home sales in Paia with a median price of $678,500. During the first half of 2012, there were sixteen sales reported with a median price of $457,500. That is a 12.5% drop in sales volume and a 48% increase in median price.
There were three condo sales reported in Paia during the first six months of 2013. There was only one condo sale during the first half of 2012.
There were three land sales reported in Paia during the first half of 2013. No land sales were reported in Paia during the first six months of 2012.
While compiling the numbers above, I came upon a number of other facts and figures about the Paia Market during the first half of 2013 that I thought were worth sharing.
- The highest sale in Paia for the first half of the year was $5,500,000 for an older home on almost an acre of oceanfront land. My understanding is that this was more of a land purchase than a home sale as the buyer intends to tear down the existing older homes on the property and build a larger estate home.
- There was one other sale over $1,000,000 during this time frame and it was another big deal. An estate property across the street from Tavares Bay sold for $4,600,000.
- In addition to the home sales, there was one other big land sale in Paia to start the year. An 18,875 square foot lot right on Tavares Bay sold for $2,300,000.
- Kuau Bayview was the busiest neighborhood in the Paia area with four total closes. It also saw the strongest signs of price appreciation with a new all time high sales price and a couple of other sales notable for their high price considering location and/or home size.
- On the other end of the spectrum, Spreckelsville saw no sales during the first half of the year. Anecdotal evidence would suggest this might be a case of variability verses the neighborhood falling out of favor. I know of a couple of listings that had heavy showing activity and received offers.
- If there was one number that really grabbed me, it was that six of the fourteen sales were properties that were not listed on the MLS. Buyers were doing some digging to find properties with the inventory of homes on the market under $1,000,000 limited.
- There weren’t many distressed sellers on the market in 2013. There was only one short sale that was completed and there were no bank owned sales during the first six months of 2013.
It was an interesting first half of the year for the Paia market. At first blush, the decrease in home sales might suggest diminished demand. That being said, I think the case can be made that it wasn’t demand that was lacking as much as quality inventory. We can see that by the number of homes that were sold that were unlisted. Buyers had to scrounge for unlisted properties under $1,000,000 to meet their needs. Pricing was a mixed bag. Properties under $1,000,000 saw varying levels of upward price pressure depending on the neighborhood. Skill Village saw modest appreciation despite limited inventory. North Shore Village sales are infrequent, but the most recent sales were well over the last sale in 2011. Kuau Bayview saw signs of significant appreciation. A new record sales price was established. There was also the second highest sale on a cost per square foot basis and the highest sale for a home abutting Hana Highway.
The luxury market was a little less clear cut than entry and middle levels of the Paia market. The two big sales were both noteworthy. The high sale was the third highest sale in Paia history. It is particularly notable in that the home is a tear down. The buyers paid a healthy sum for arguably the best piece of land in the Kuau area. The second highest sale of the first six months of 2013 was the highest ever sales price for a non-oceanfront home. Beyond that luxury home sales were relatively quiet particularly in the $1,000,000-$2,000,000 range. I don’t think this was due to a lack of interest as much as it was just the variability in the market and the inability of sellers and buyers to find a common sales price.
The land and condo market both saw upticks in activity during the first half of 2013. After seeing little interest for at least a year, Kuau Plaza started to garner interest from the market place in the second half of 2012 and we saw three sales in the first half of 2013. There is never a whole lot of activity in the Paia land market. The reason being that there is very little vacant land in the community. Three sales is pretty busy for a six month span by Paia standards.
Looking at the current inventory of Paia Real Estate listings, the inventory options under $1,000,000 remain pretty limited. The chart below shows the distribution of properties by price point. The Blue Bars represent sales during the first half of the year and give some sense of market demand. The green bars represent pending and contingent listings. The red bars represent active listings.
The map below gives a sense of the geographic distribution of recent sales, current pending sales and active listings. The map also includes land and condo listings. Clicking on the individual pins on the map will bring up property details. If you click on the link below the map, it will bring it up as a separate page with additional detail on the all of the properties on the map.
View Paia Real Estate Sales 2013 in a larger map
As it stands, there is a pretty good inventory of homes to choose from in the higher price ranges while the options under $1,000,000 remain limited with only three active listings in the Skill Village neighborhood. Of note, two of the skill village listings are listed for near peak market prices. While Kuau Bayview has seen that type of price increase, we haven’t seen as strong a demand for Skill Village to date. With so little inventory available, it will be interesting to watch the market feedback for these properties.
Now that we have a better sense of what is available in the current market, I wanted to give my thoughts on what me might expect for the Paia market for the rest of 2013 via the video commentary below.
Contact The Maui Real Estate Team with questions or for additional information. Paia is where our office is located and it also happens to be the home of three members of the Maui Real Estate Team. We know the community like it is our backyard. We would welcome the opportunity to sit down with potential Paia buyers and sellers for a free consultation. You can find all of the current active Paia Real Estate Listings and Spreckelsville Real Estate Listings on MauiRealEstate.com.
Maui Real Estate Blog
Paia Real Estate 2012 Market Report and 2013 Outlook
In the third installment of our community market reports, I wanted to take a look at how the Paia market performed in 2012. By comparing last year’s sales to the current inventory, we also hope to provide some thoughts on the outlook for the 2013 Paia Real Estate Market. Paia is a North Shore community known for its access to water sports and bohemian vibe. Kama’aina and second home owners also love the great restaurants and shops. The town is gaining in national recognition with everything from New York Times articles on art galleries to Coastal Living’s recent selection of Paia as one of the ten happiest seaside towns in America. When talking about the Paia Real Estate market, we are including Paia and the associated communities of Spreckelsville and Kuau. We did a market report on Spreckelsville already, but we are also including the Spreckelsville data in this Paia report. During 2012, we saw modest improvements in the Paia market with a few more closes over what we saw in 2011. One might argue that we may have seen more closes if there was more quality inventory available. The lack of inventory in Paia clearly represents a challenge for the 2013 as well.
There were 29 homes sold in Paia during 2012 at a median price of $580,000. By comparison the 2011 sales totals were 26 home sales with a median price of $597,000. That means that there was a 12% increase in sales volume and a 3% decrease in median prices.
There was one condo sold at Kuau Plaza in 2012. That was a two bedroom unit that closed for $260,000. There were no condo sales in Paia during 2011. It was an off market sale (the condo was not listed on the MLS, however a Realtor assisted) and the unit was a 3rd floor unit with some upgrades.
There were two vacant lots sold in the Paia area during 2012. That is a slight uptick from 2011 when there was only one sale of vacant land. Overall there is a general scarcity of vacant land in Paia.
Here are a few other notes about the Paia market in 2012.
- There were three bank owned homes that closed in Paia in 2012. That is down from the five that closed in 2011.
- There were four short sale closes in 2012. That is equal to the 2011 numbers for Short Sale activity.
- The high sale in the Paia area was $2,520,000 for a beachfront home in Spreckelsville. This was the only oceanfront sale in the Paia area in 2012.
- There were six sales over $1,500,000 in the Paia area this year. One was in Kuau and the rest were in Spreckelsville.
There were signs of a recuperating Paia Real Estate market in 2012. The uptick in sales volume was modest, but this is also a relatively small market. As I mentioned in the first paragraph of this post, I would argue that a lack of inventory curtailed the growth of the market more than anything else. While I have no quantitative evidence to support this assertion, here are the two main reasons why I think the market could have absorbed additional inventory. 1. Well priced properties in Paia were generating bidding wars. 2. Buyers were digging hard to find unlisted opportunities. There were six sales of unlisted properties during the second half of 2012.
While there was some healthy activity over $1,000,000, the ultra luxury market was comparatively quiet. There were eight properties listed over $2,500,000 with only one that went under contract. That is in line with the overall market trends on island which saw a down year for luxury home and condo sales.
What does 2013 hold in store for the Paia Real Estate Market? Inventory is going to play a big part in the current market. If you look at the chart below, I compared the current inventory of active homes for sale in Paia vs. the 2012 sales. The chart does not include pending sales.
There is a relative shortage of properties in almost all price ranges under $1,000,000. There are very few entry level homes on the market and there is even less in the middle. There are no active Kuau Bayview listings, but there are two listings and one unlisted property currently under contract in that neighborhood. One of the listings under contract was priced well above recent comparable sales. Any new inventory in Kuau Bayview or North Shore Village would be well received in the market place. The relative scarcity of properties at the low end and the middle is likely to generate some upward price pressure in Paia. The one million to two million price range has a decent balance of inventory. There appears to be enough supply to meet the typical demand of buyers in this price segment. That being said, this was a segment of the market that had strong activity in the second half of 2012 with many buyers seeking out unlisted properties. The biggest selection of properties for buyers is above $2,500,000. While this was a quiet segment for activity in 2012, there are signs of life in this part of the market already this year. There are currently two properties priced over $5,000,000 in Paia that have gone under contract (pending sales) for the first of the year. While it will be hard for the market to come close to sustaining that pace, it sets the stage for a stronger 2013 in the Paia Luxury market.
The condo and land markets will always be relatively quiet due to limited inventory. There is only one active land listing in Spreckelsville at this time. The Paia and the Kuau area just don’t have much left in terms of vacant land. For Paia condo buyers, there are a couple of listings at Kuau Plaza currently. I would suspect those may get more interest with the lack of low end housing inventory and overall interest in Paia. The only other condo complex in the Paia area is Sugar Cove. This luxury beachfront complex tends to have limited inventory due to low turnover.
If you are interested in this great North Shore community, you can check out the current inventory of Paia Real Estate Listings. We also have a page specifically for Spreckelsville Real Estate Listings. We would also welcome the opportunity to discuss your needs and the community directly. Our office is located in Paia and three of our agents call the area home. We know it well and are happy to answer questions about the community. Contact The Maui Real Estate Team to schedule an appointment.