Maui Real Estate Blog
January 2014 Maui Real Estate Statistics Sneak Peek!
The first month of 2014 is in the books and Valentine’s day is just around the corner. That means it is time to take the pulse of the Maui Real Estate market and get a sneak peek at the January 2014 Maui Real Estate Statistics. This post takes a look at sales volume and median prices for properties this January and compares them to what we saw during January 2013. I also highlight some other numbers that I came across while compiling these stats that I thought might be of interest. This month, I am opting not to do a video analysis. I will be saving my face made for radio until next month. However, I did take a stab at gauging buyer activity during the first six weeks of peak buyer season. Without further ado, here are the numbers.
There were 64 homes sold in Maui County during the first month of 2014 with a median sales price of $691,500. Last January, there were 63 homes sold with a median price of $550,000. That is a less than 2% increase in sales activity and a 26% increase in median price when comparing this January to January 2013.
There were 92 condos sold in January of 2014 with a median price of $431,000. In the first month of 2013, there were 63 sales at a median price of $297,000. That means a 46% increase in sales activity and a 45% increase in median prices over last January.
There were 13 land sales in January of this year at a median price of $370,000. Last January, there were 7 sales with a median price of $675,000. That is an 86% bump in activity and a 45% decrease in median. With the smaller sample sizes, the difference in sales and medians can be more dramatic.
In addition to the numbers above, here are a few other numbers and tidbits that I thought were worth sharing about the January Real Estate sales activity.
- The highest priced home sale for January was $9,300,000 for a 4,000 square foot oceanfront home at Makena Place.
- That was one of 11 homes sold over $2,000,000 in January. That is a very strong month for ultra luxury purchases. For context, there were only two sales in that price range last January. It was a geographically diverse list of homes sold with big closes in Spreckeslville, Pukalani, Lanai, Ka’anapali, Wailea, Kihei and Makena.
- The high condo sale last month was $2,600,000 for a three bedroom unit at Hoolei in Wailea.
- The Ho’olei sale was one of 7 condo transactions that sold for over $1,500,000. There were also high dollar transactions at Honua Kai, Ka’anapali Ali’i, Puamana and the Terraces at Manele over on Lanai.
- As a quick side note, there continues to be pretty extensive luxury sales activity on Lanai. I did a little digging and the vast majority of the purchases appear to have been made by an LLC out of Walnut Creek, California. I suspect that LLC is owned by Larry Ellison.
- The high land sale in January was $4,587,999 for 3,455 acres of land in Hana. This is all of the Hana Ranch land on the Mauka or Mountain side of Hana Highway. This was a complex transactions with additional considerations above and beyond the published sales price. This also included the Ranch’s cattle operation and private water system. With the water system comes additional obligations. It is also known that there were quite a few parcels of land included in the purchase that did not have clear title.
- Bio-Logical Capital was the entity that purchased the Hana Ranch. They plan to keep the land in agriculture and conservation with the hope of boosting the agricultural productivity. It will be interesting to see what changes this purchase might bring to Hana and the Hana Real Estate market.
- There were only 4 bank owned (REO) sales that closed last month. There were 6 REO sales in January of 2013. At this point, bank owned properties are having a very limited impact on the Maui market.
- There were 10 short sale transactions completed in January. Last January, there were 14 short sale transactions. It will be interesting to see if the number of short sale transactions will decrease significantly going forward. A mortgage forgiveness tax break expired on December 31st. Sellers may find debt forgiven by banks to be classified as income by the IRS.
There were a couple of things that stood out about last month’s numbers. They are both related. Number one on the list is the high monthly median sales price for homes. To be clear, the drastic increase in medians is not a just a reflection of the increase in home values. It is safe to say that there were price increases around the island, but that wasn’t the only factor that drove up the median. Distribution of sales plays just as big if not an even bigger role than price increases when it comes to changing median sales prices. That brings us to the other number that really stood out this month in the stats. The 11 homes sold over $2,000,000 was significant. When 17% of the homes sold in a month are over $2,000,000, that is going to push up your median sales price. As I have said in other recent stats posts on our blog, I think we can attribute a good portion of this high end market activity to a very strong year for the stock market. There were high net worth buyers who cashed in on their stock returns and made discretionary purchases of Maui luxury properties.
January is typically a slower month for sales to be reported. That is because November and at least the first couple of weeks of December typically see fewer properties to go under contract. That isn’t as busy a time of year for year for visitors and local buyers tend to be preoccupied with other holiday activities to be shopping for houses. While January may not bring a ton of sales, this is one of the three to four months of the year that constitute our peak buyer’s season.
Lately, I have heard some buzz on the street and from other Realtors that the market had really picked up as of late. That didn’t quite jive with what I had observed in my own personal real estate experience. It also didn’t quite reflect what I was seeing with pending properties on our MLS. The market feels like it is humming along at a good pace, but it did not feel any stronger than last season. If anything, I suspected that more limited inventory on the low end was reducing the total number of sales. I wanted to make sure I wasn’t missing something.
While we have our fingers in a broad cross section of the Maui market, maybe there was more activity that I overlooked. The January sales volumes above are a lagging indicator. They don’t show the current market activity. To get a gauge of current activity, I wanted to look at the properties that went pending since the start of peak buying season. The table below shows the properties that have gone under contract between December 20th and January 31st and compares it to the same period a year ago.
As you can see from the chart above, buyer activity during the 2013-2014 peak buyer’s season is for all intents and purposes mirroring what we saw the year before. Vacant land is the only property type where the number of properties going into escrow is lagging behind what we saw last year.
For buyers considering entering the Maui Real Estate market, the analysis above looks at the market in broad brush strokes. Sales activity and pricing momentum varies around the island by community and price point. The Maui Real Estate Team would welcome the opportunity to discuss market conditions and available inventory for the types of properties that will meet your needs. Sellers will find that market conditions have continued to improve, but there are still places where higher inventory requires thoughtful pricing. Contact The Maui Real Estate Team today for a free consultation to discuss your property and your real estate needs.
Maui Real Estate Blog
December 2013 Maui Real Estate Statistics Sneak Peek
The champagne corks have long been popped and the smoke from New Year’s fireworks have cleared from the island skies. That means another month and another year in the books for the Maui Real Estate market. At the start of the New Year, we want to look back at how the market has performed of late, over the entirety of 2013 and what we might expect in 2014. This is the first of what I hope to be several posts wrapping things up on 2013. The first post will be focused on the last month of the year. My sneak peek at the December stats takes a look at sales activity to close out the year and a few other notable numbers from the last month of the year. Typically, these monthly posts will have an accompanying video commentary. I am going to forsake the video for a briefer written commentary. I will save my radio face for a separate post where I provide video commentary on the year end statistics. Without further ado, here are the December 2013 numbers.
There were 75 homes sold in Maui during December with a median price of $510,000. Last December, there were 84 homes sold at a median price of $508,000. That calculates to an 11% decrease in sales activity with a very modest increase in median price.
There were 116 condo sales reported in December at a median price of $365,000. In December of 2013, there were 142 condos sold at a median price of $376,000. That is an 18% decrease in activity and a 3% lower median than last year.
There were 22 parcels of land reported sold in December of 2013 with a median price of $370,000. There were 29 sales last December with a median price of $340,000. That is a 24% decrease in activity and a 9% increase in median price.
While compiling the numbers above, I came across the following numbers and stats that I thought were worth sharing.
- The highest sales price for a single family home was $11,900,000 for a beachfront property on Keawakapu Beach right at the edge of Wailea. This is an older home on 8/10ths of an acre. It will likely be extensively renovated or scraped with a larger estate home built.
- There were two other homes that sold for over $2,000,000 last month. One was located in Olinda and the other was in Kapalua. It was notable that the Kapalua property was purchased via auction.
- The highest priced condo transaction last month was $3,900,000 for a place at Wailea Beach Villas.
- There were 9 other condos that sold for over $1,500,000 at a variety of complexes around Maui County. There were sales at Honua Kai, Ka’anapali Ali’i and Hoolei on Maui. On Lanai, there were sales at the Terraces at Manele and the Palms at Manele.
- There were 10 bank owned (REO) properties that sold last month. There were 20 REO sales last December.
- There were 14 short sale transactions completed successfully last month. There were 21 short sales that closed in December.
The December 2013 sales numbers appear to have been pretty healthy. While sales activity is down from what we saw last December, I don’t necessarily see that as a sign of a weakening market. December of 2012 was well above average for sales and a reflection of a surge in market activity that started in early Fall of 2012. October and November of 2012 had more properties go under contract than any other month of 2012. This was especially noteworthy in that the fall is usually the slowest time of year for transactions. This was the start of a run of heightened buyer activity that continued through the first half of 2013. Increased buyer demand was fueled by low interest rates, improving consumer sentiment and scarce inventory. As we hit the fall of 2013, the market behaved a little more like normal. Sales activity started to slow as we entered the traditional slow season for Maui Real Estate. As we enter peak visitor season, we should start to see a steady rise in the number of properties going under contract. Sales volume is a lagging indicator so we may not see that bump in the stats until February or March.
As I mentioned at the start of this post, this is just the first of what should be a few Maui Real Estate statistics posts to start 2014. Leave us a comment if you have any questions on the December stats. If you are interested in buying or selling a property on Maui, Contact the Maui Real Estate Team to arrange a free consultation to discuss your real estate needs.