Maui Real Estate Blog
Sneak Peek at the November 2014 Maui Real Estate Statistics
The last of the turkey sandwiches have been consumed and Mele Kalikimaka is playing on the local radio stations. That means it is early December and it is a time to take a sneak peek at the November 2014 Maui Real Estate Statistics. This post takes a look at median sales prices, November pending sales and the sales volume for November as compared to November of 2013. I highlight some of the notable numbers from the November sales. I also provide a few thoughts on market activity and what it means for buyers and sellers who are thinking of entering the Maui Real Estate market. Without further ado, here are the November 2014 Maui Real Estate Stats.
November Maui Real Estate Sales Volumes and Median Prices
By my count, there were 73 homes sold in Maui County during November of 2014 with a median sales price of $590,000. Last November, there were 75 homes sold with a median price of $515,000. That calculates to a 3% drop in sales activity and approximately a 15% increase in the median sales price.
I counted 67 condos reported sold in Maui County this November at a median price of $372,500. In November of 2013 there were 96 condos sold at a median price of $350,000. That is a 30% decrease in sales volume and a 6.4% increase in median price when comparing this year to last year.
There have been 10 lot sales reported in Maui County during November of 2014 with a median sales price of $411,500. Last November, there were 23 sales with a median price of $547,371. That is a 54% drop in sales activity and a 25% drop in median price comparing this November to last November.
Notable Numbers From The November Maui Real Estate Sales
While compiling the November sales volumes and medians, there were some other notable numbers that I came across that I thought were worth sharing.
- The highest priced home sale of the month was $2,350,000 for a 5,529 square foot home with a pool on a two acre lot in the Wailuku Country Estates Subdivision.
- That was one of three home sales over $2,000,000 last month. There was one more sale in Wailuku Country Estates and one sale in the Maunaolu Subdivision located between Makawao and Paia. This was a fairly unusual month for high home sales with no activity occurring in the more traditional resort communities. The two Wailuku Country Estates sales were only the second and third homes to ever sell in Wailuku for over $2,000,000.
- The Montage Residences at Kapalua Bay was home to the highest priced condo sale in November. Since coming to market in June, they have accounted for 80% of the condo sales over $4,000,000. This month’s high sale closed for $4,750,000.
- The Montage sale was one of six closes over $1,500,000. The other five closes included one more transaction at Montage, a sale at Honua Kai, a sale at the Whaler, a Wailea Point close and a close at Hoolei.
- The 67 condo sales this month represented the lowest sales total of the year and the second lowest total in the last two years.
- The highest priced land sale last month occurred in the One Palauea Bay subdivision in Makena. The 1.089 acre lot sold for $3,500,000.
- There were 12 bank owned sales this November compared to seven bank owned sales last November. There were 4 short sales this November compared to 13 last year. This is a continuation of a trend where we have seen a slight increase in bank owned inventory and sales compared to last year, while short sales continue to play a decreased role in the market.
Thoughts on The November Stats
The November sales activity followed recent trends on island. Maui’s home sales totals continue to be very close to what we saw last year. Condo sales are down substantially. Land sales are also down substantially. As discussed in the September and October statistics, this drop in condo activity is driven in large part by a reduction in the inventory of properties for sale at the entry levels of the market. I think volumes may also be dwindling due to the pricing strategies of some sellers. There are still quite a few sellers shooting for prices well above recent sales. If some sellers were to be more realistic about their sales prices, we may get a little bit of a bump in condo sales activity.
The drop off in land sales that we saw this month may not be quite as significant as it appears. Land statistics include both commercial sales and lots that might be used for residential purposes. The November 2013 sales included six commercial new development lots in the Maui Lani subdivision. There was only one commercial sale this November. The Peahi Hui subdivision also had an impact last November with five new development sales.
It is worth making a brief note that changes in median prices are not a direct indicator of changes in value. Medians shift due to changes in values AND shifts in market activity. More high priced sales push medians higher and more low priced sales push medians lower. Small sample sizes can make changes in median particularly dramatic. This difference in Land Medians between this November and last November is a great example. It is safe to say that land values have not dropped 25% compared to last year.
November Pending Sales
While the November Sales weren’t very inspiring, are there brighter days in store for the Maui Real Estate Market? That’s tough to say, but we do have some sense of what future sales might be based on the number of properties that went pending in November.
It was encouraging to see pending home sales were up compared to November of last year. It was even more encouraging to see that the number of pending condo sales was higher than November of last year. I am not sure that this is a sign that the condo market is going to see sustained growth or a turn around from it’s recent activity, but it beats the alternative as we head in to our buying season. Pending contracts for land sales are down again compared to last November.
What Does it All Mean for Buyers and Sellers in The Maui Condo Market.
What does this all mean for buyers and sellers? December officially marks the start of peak buyers season. The increases in visitor numbers during winter months means an increase in potential buyers. Buyers will find varying market conditions depending on the part of the market where they are shopping. Market inventory is greatest at the highest price points in the market. Luxury home and condo sellers will find a good selection to choose from. That said, sellers in the luxury market tend to have deeper reserves so they may or may not be as negotiable on price. The entry level vacation rental condo market has seen inventory decrease significantly over the last 12-18 months. Well priced condos in this segment of the market are tending to go quickly. Conditions are similar for entry level homes with buyer competition particularly fierce for well priced properties. Buyers should be pre-approved before looking at homes and prepared to act quickly when the right opportunity becomes available. Sellers should look closely at current market conditions in their price range and community when looking at go to market strategy. Overpriced properties are sitting in this market. These mixed market conditions require thoughtful representation. Contact The Maui Real Estate Team today for a free consultation. We would welcome the opportunity to learn about your real estate needs and discuss the market.
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.
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.
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.