Maui Real Estate Blog
Wailea and Kihei Vacation Rental Condo Sales Surge
The Maui Real Estate market has seen a healthy bump in condo sales during 2017. Sales volume for the first five months of the year are about 10% higher than the same period of 2016. Much of that growth can be attributed to the vacation rental condo market in Kihei and Wailea. After a couple of relatively slow years, this year has seen a resurgence of buyers interested in South Maui. I wanted to take a look at the numbers specific to Wailea and Kihei, the condos that are seen the biggest increase in demand, and provide a few thoughts on what might be driving the increase in activity.
Wailea and Kihei saw a 56% increase in vacation rental condo sales between January 1st and May 22nd, 2017 compared to the same period in 2016. There were 173 units sold this year vs 111 sold last year. That increase in activity occurred across all price ranges. Condos priced $500,000 and under saw the most activity with 78 transactions. There were 65 closes during the same period of 2015. The 20% increase in sales compared to 2016 was actually the lowest percentage increase in activity for any price range. The price range from $501,000 to $1,000,000 saw a larger increase in activity with 63 sales compared to 33 sales. That calculates to a 91% increase in sales activity. While the $1,000,001+ price range experienced the biggest percentage increase in activity compared to last year with 38 units sold compared to 13. That is a whopping 292% increase in sales activity.
Wailea Condo Sales
Which condo complexes saw the biggest gains? In Wailea, the increases were across the board. Every single condo complex in Wailea that allows vacation rentals has seen more sales in the year to date than they did over the same period of time last year. That said, there were a few condos that stood out over the others.
Wailea Elua is a low density complex with 25 two story buildings located on 24 beachfront acres. Prices in the complex range from roughly $1,000,000 for one bedroom units up to over $3,500,000 for front row, beachfront two bedrooms. The property is valued by owners for its low density, location and beautiful Elua Beach. To say that the start of 2016 was not busy for Wailea Elua would be an understatement. There were no closes by this point of the year. As of the 22ndd of this month, there have been 6 closes.
Wailea Ekahi is the biggest beachfront complex in Wailea. There are 296 units spread over 54 buildings on 35 acres. It has studio units through two bedrooms in a variety of floor plans. Prices range from the $600,000s for studios all the way up to just under $2,000,000 for two bedrooms close to the beach. Owners like the location, the green belt that goes through the middle of the property, the beachfront pool area and Keawakapu Beach. Ekahi saw decent market activity in 2016 with 5 sales in just under 5 months. There has been double that amount of activity with 10 sales reported this year as of May 22nd.
Wailea Beach Villas
Wailea Beach Villas is home to the highest priced vacation rentable condos in Wailea. The property has 9 buildings on just over 10 acres. Wailea Beach Villas has larger 2 and 3 bedroom floor plans with some units having as much as 2,900 square feet of living space. Prices range from the low $2,000,000s to over $9,000,000. Owners like the bigger floor plans, amenities, newer construction and central location within Wailea. It is situated right behind the shops of Wailea and next to the Grand Wailea. It only had one sale during the first 5 months of 2016. There have been 4 sales to date this year.
Kihei Condo Sales
When I first started in real estate, I met with a vacation rental manager to discuss popular Kihei vacation rentals. Kamaole Sands was the first condo he mentioned. Kamaole Sands has 440 units spread over 10 buildings on 15 acres. It has one, two and a handful of three bedroom floor plans. Prices range from the mid $300,000s up to the $700,000s. Condos located on the “inner circle” green space and condos closer to the ocean sell at a higher premium. Owners appreciate the large green space running through the center of the complex that features a pool, fountains and tropical landscaping. It is located across the street from Kamaole Beach Park III. It is a big complex and it typically has higher occupancy. Over the last few years, there has been an abundance of inventory and relatively few buyers. In 2016, there were just 5 units sold through the first 5 months of the year. This year, there was a clear market shift. Sales increased over 300%, with 16 closes for the year as of May 22, 2017.
If Kamaole Sands was first on the list of condos mentioned when I talked to the vacation rental manager, Maui Banyan was mentioned shortly thereafter. There are 256 units spread over 8 buildings on 8.6 acres. There are one and two bedroom floor plans. The popular two bedrooms have a lock off that allow the units to be rented as a studio and one bedroom. Prices range from the $low $400,000s up to the high $600,000s. View and high quality remodels tend to distinguish the higher priced properties. The lock off option, two nice pools, the location across from Kamaole II Beach Park and proximity to shops and restaurants are typically some of the first things that owners mention about the property. In the first five months of 2016, there were only 3 sales. As of the 22nd of May, there have been 11 sales reported for the year to date. That is an impressive 366% increase in activity.
Maui Vista offers one of the lower entry points into the South Kihei vacation rental condo market. The complex has 280 units spread over three buildings on 8.82 acres. Each building has its own pool and set of tennis courts. There are both one and two bedroom floor plans. Prices range from the high $200,000s for fixer units up to the mid to upper $400,000s for two bedrooms. Maui Vista offers good amenities and close proximity to shops and restaurants. It is a block from Charley Young Beach Park. Maui Vista has seen a little more activity over the last couple of years compared to places like Maui Banyan and Kamaole Sands. It had 7 sales through the first five months of 2016. That said, it was another place that experienced a healthy jump in activity. As of May 22nd, there have been 16 sales reported this year.
Why the surge this year?
While the overall Maui real estate market experienced fairly strong years in 2015 and 2016, the vacation rental condo markets in Wailea and Kihei were not seeing the same strong levels of activity. Inventories were high and sales volumes were low. A significant factor in the slower sales over the last couple of years was a lack of demand from Canada. The period between 2007 and 2013 was an era of stronger Canadian Currency. With the Looney at or near par with the U.S. dollar, Canadians were flocking to South Maui. They remained pretty consistent buyers through the recession. The slip in oil prices in 2014 pushed down the Canadian dollar and a significant pool of buyers shrank considerably.
While that explains why sales have been lower the previous couple of years, I don’t think that speaks to why we are seeing the increase this year. The Canadian dollar is still well below par with the U.S. dollar. We have seen some Canadian buyers start to come back, but it isn’t enough to juice the market to the extent that we have with this year’s sales increases. I did my best to look at the geographic composition of buyers this year in some of the Kihei and Wailea complexes over the last five years. I say that I did my best in that more recent sales within the last month may not show the geographic origin of the buyer yet. With some of the older sales, the condos may have already resold preventing me from seeing where the previous owner resided full time. In Kamaole Sands, just 1 out of the 16 buyers this year is Canadian. By comparison, in 2013, 3 out of 10 were Canadian and 2 out of 4 units sold in 2012 were Canadian buyers. Maui Vista had a few more Canadian buyers this year with 3 out of the 16 sold. That is still well below the 4 out of 7 and 4 out of 10 Canadian buyers we saw at Maui Vista in 2012 and 2013 respectively. The one place where we did see a little more Canadian activity this year was among the higher priced Wailea condos. At Wailea Elua 2 out of 6 buyers were Canadian, and 1 out of 4 buyers were Canadian at both Polo Beach and Wailea Beach Villas.
If the Canadians played only a small part in the resurgence, what were the other factors at play that drove the sales increase? I can’t say definitively, but I would suggest there were a few factors at play. The strength of our feeder markets play a part. Real estate markets in the Western United States remain strong. Buyers coming from strong real estate markets may be empowered both psychologically and financially to purchase a second home on Maui. The stock market continues to achieve near record highs. Strong stock returns may enable buyers to make a discretionary second home purchase. The last factor is pure speculation on my part, but I wonder if the growing strength of the Airbnb brand might also play a role. With Airbnb doing more and more advertising, maybe just maybe that is planting the bug in some people’s ear to consider a vacation rental condo purchase. The last factor that enabled the upsurge is more tangible. We had supply to sell. Home sales volumes are down this year on island, but not due to a lack of demand. There just isn’t enough inventory for buyers particularly in the price ranges below $1,000,000. There was plenty of inventory in the condo market after the previous two to three slow years. In Kihei, there are also some pretty good values. Places like Kamaole Sands are still selling for prices a fair amount below the last market peak.
While the market has absorbed some of the inventory during the first five months of the year, there is still a good selection of condos available to sustain healthy activity in the South Maui condo market. I would suspect that we will continue to see stronger sales this year unless something in the overall economic picture cuts back demand. Contact the Maui Real Estate Team if you are considering a vacation rental condo purchase on Maui. We would welcome the chance to talk to you about some of the options on the market that might fit your needs. You can also search MauiRealEstate.com for the full inventory of Kihei Condos for Sale and Wailea Condos for Sale.
Maui Real Estate Blog
Maui Luxury Condo Market Update
Earlier this month, we took a look at Maui’s Luxury Home Market. Today, I wanted to turn my sights towards the high end condominium market. This post will include totals on all of the condos sold for the year to date (as of September 20), notable numbers from this year’s sales, and market conditions specific to the three resort areas of Wailea/Makena, Ka’anapali and Kapalua.
When we have discussed luxury condos on our blog, we have used the $1,500,000 and above price point as the threshold for pricing. When we first started to look at the luxury condo market, that was something of a starting point for some of the really high end condos. To be clear, there are some very nice condos below this price point. That said, we want to be consistent with our methodology. So all properties discussed in this particular blog sold for $1,500,000 or more.
Maui Luxury Condo Sales Volume and Median Price
There were 69 condos sold thus far this year as of September 23, 2015. The median price for those sales was $2,250,000. Between January 1, 2014 and September 23, 2014, there were 63 sales at a median price of $2,575,000. That is roughly a 10% increase in volume and a 13% decrease in median price.
Notable Luxury Condo Sales Numbers for the Year to Date.
Here are some of the most noteworthy numbers from the luxury condo sales this year.
- The highest priced condo to sell thus far this year closed for $8,500,000. This is a three bedroom, three and a half bath, beachfront unit with 2,919 square feet of living space at Wailea Beach Villas.
- Including the sale at Wailea Beach Villas, there were a total of 12 condos sold over $4,000,000.
- Honua Kai saw the most sales activity of any condo complex on the island. There were a total of 20 sales at Honua Kai over $1,500,000 including 11 new developer sales.
- The Wailea and Makena Market saw the most sales activity over $1,500,000 with a total of 28 sales. Kaanapali saw the second most activity and Kapalua was third.
- In addition to the sales activity in the major resort markets, there was one sale in Lahaina, one in Kihei, one in Spreckelsville and two on Lanai.
- There were no bank owned condos or short sale transactions among this year’s sales
Wailea and Makena Condos
Wailea and Makena have had a good year for sales to date. The 28 sales reported exceeded last year’s total of 20. That is a 40% increase in activity. Much of that increase in activity occurred in Makena. While there was only one sale in Makena during the same period last year, this year there were 6 sales. Five of the six Makena sales were at Makena Surf. The remaining sale was at Na Hale O Makena. This was a particularly busy year for Makena Surf with the five sales reported thus far more than any year since 2004.
The Wailea sales over $1,500,000 were spread out among a variety of complexes. There were 7 sales at Hoolei, 1 at Andaz, 2 at Kai Malu, 1 at Papali, 1 at Wailea Ekahi, 3 at Wailea Elua, 3 at Wailea Beach Villas and 3 at Wailea Point. Hoolei continues to lead the way in high end sales in Wailea. The size of the condos combined with their price point and the potential to access amenities at the Grand Wailea continues to be an attractive option to buyers. While Wailea Beach Villas did not have the same sales volume, it was noteworthy for the fact that it had the top two highest priced condo sales on the island thus far this year.
It will be interesting to see what happens in the Wailea and Makena market for the rest of the year and into 2016. There is still a good selection of variety to choose from on the MLS. There is plenty of active inventory on the MLS with 40 condos on the market. There are unlisted properties available at Andaz and the new Keala O Wailea development. There is also a chance that we might see pre-construction sales at Makali’i at Wailea before the end of the year. You can see all of the current Wailea and Makena Condos listed on the MLS on MauiRealEstate.com. Contact The Maui Real Estate Team if you have questions on any of the unlisted properties.
The Ka’anapali Condo market has also had a fairly strong year with 26 sales reported to date. That is down 7% from the 28 units sold during the same period last year. The Ka’anapali market has been buoyed over the last several years by activity at the Honua Kai Resort. Honua Kai has been a big draw as the first fee simple whole ownership new development along this stretch of coast for over 20 years. Of the 26 condos sold in Ka’anapali for $1,500,000 or more, 20 were at Honua Kai. Ka’anapali Ali’i has had 5 sales thus far this year. There was also one sale at the Masters.
The Ka’anapali luxury condo market is starting to see shrinking inventory with only 20 active listings over $1,500,000. A big part of that stems from Honua Kai. The developer is getting close to selling out their remaining units. There are only 3 new developer listings left on the MLS. I believe there are still a handful of additional new developer units in addition to those posted on the MLS. There are only three units active at Ka’anapali Ali’i with the remaining listings located at Ka’anapali Shores and the Whaler. It will be interesting to see if the dwindling inventory at Honua Kai will have an impact on places like the Whaler and Ka’anapali Shores. Buyers have shown a preference for the newer Honua Kai Condos leading to depressed sales at the other places. Will some of the older condos nearby start to see an uptick in activity? You can see the full inventory of Kaanapali Condos listed on the MLS via MauiRealEstate.com.
The Kapalua Market has seen pretty similar activity levels to what we saw last year. There have been 10 sales reported in the year to date this year. There were 9 sales reported over the same period last year. The focal point for luxury condo sales in Kapalua has been the Montage Residences on Kapalua Bay. Montage came on the market last June. This property was formerly the Ritz Carlton Residences. The Ritz Residences went into foreclosure and the property was purchased by Lantern Capital. Lantern appointed Montage to manage and revamp the property. Montage has seen steady sales since it has come on the market despite pricing that starts in the mid three million dollar range. There have been 8 sales reported at Montage thus far this year.
The other notable sale was at Ritz Carlton Residences. To be clear, this is a different animal from the Ritz Residences Kapalua Bay that was previously foreclosed upon. These condos are part of the Ritz Carlton Hotel. The Ritz condos had been on the market closer to the downturn and weren’t getting as much traction. They are back under the market with a new sales team. It will be interesting to see how these condos are received by the market going forward. From what I have heard, they are getting a pretty good response.
While the two new developments have been relatively well received, some of the older complexes have seen slower activity. High end Kapalua condos like Coconut Grove and the Ironwoods are traditionally condos that see limited inventory and limited sales volume. There was one sale in the Ironwoods this year. Kapalua Bay Villas is a condo that seems to be getting poor market feedback by luxury buyers. There have been 4 sales over $1,500,000 at Bay Villas since 2009. There are currently 7 active listings in the complex with none pending. It appears as if sellers in this complex may need to adjust pricing if they are going to generate interest from buyers.
For the rest of the year, I would anticipate that we will continue to see activity at Montage and the Ritz. Buyers in Kapalua have a good selection of inventory to choose from. You can see the full inventory of Kapalua Condos on the MLS on MauiRealEstate.com. Contact The Maui Real Estate Team directly if you would like us to assist you with buyer representation at either the Montage or the Ritz. There is more inventory available at both of those condos than what is showing on the MLS.
Other Condo Sales Around the Island
In addition to the activity at the resort communities, there have been a handful of sales from other communities around the island. There was one sale in Spreckelsville at Sugar Cove, one in Lahaina at Puamana and one at the Royal Mauian in Kihei. There were also two sales over on Lanai including one at the Terraces at Manele and the other was at the Palms at Manele. The two Lanai purchases were both Larry Ellison buys as he continues to expand his holdings on the island. We tend to see limited activity on higher priced condos outside the main resort areas not so much due to lack of demand as it is a lack of inventory. There are only a handful of condos outside the resorts that can sustain prices of $1,500,000 or greater and they tend not to have a ton of inventory.
Overall Thoughts on the Maui Luxury Condo Market
Buyers still have a great collection of condos to choose from around the island. There are both new development opportunities and condo resales in more established condominiums. While the depth of the inventory may provide options, sellers in this price range tend to have more staying power. The challenge is finding potentially motivated sellers who might want or need to redeploy their money elsewhere.
I would expect that the luxury condo market will continue to be perform at or near the levels we have seen for the year to date. While interest rate increases have been postponed, this isn’t a part of the market that is as interest rate sensitive. The bulk of the buyers are using cash or private banking. The biggest potential impacts to the market come from the greater global economy. Poor performance in the stock market is a potential threat. There seems to be something of a correlation between the DOW and high end sales on the island. We have not seen any significant influxes of buyers from China like some cities in the Western U.S. and Canada. Contact The Maui Real Estate Team if you are interested in buying or selling a luxury condo on Maui. We would welcome the chance to sit down with you for a free consultation and to discuss your interests and needs.
Maui Real Estate Blog
Sneak Peek at the January 2015 Maui Real Estate Statistics
I have to admit, the hardest part of writing my monthly stats posts is usually writing the opening paragraph. I am skipping the prose this month and cutting right to the numbers. Without further ado, here is our sneak peek at the January 2015 Maui Real Estate Stats.
January Maui Real Estate Sales Volumes and Median Prices
There were 74 homes sold in January with a median price of $576,000. In January of 2014, there were 64 homes sold with a median price of $691,500. That is a 16% increase in volume and a 17% decrease in median price.
There were 83 condos sold at a median price $378,000 in January of 2015. Last January, there were 94 sales at a median price of $441,000. That is a 12% drop in activity and a 14% drop in median price.
There were 11 land sales in January in Maui County with a median price of $700,000. There were 13 sales last January with a median price of $370,000. That is a 15% drop in activity and an 89% increase in median price.
While compiling the sales volumes and median prices, I came across some other notable numbers from January’s Maui Real Estate Sales Activity.
- The highest priced home sale in January was $3,500,000 for a Residential Condominium in the Launiupoko subdivision South of Lahaina. That luxury home featured 3,675 square feet of living space, big views, a pool and 8.5 acres of land.
- The Launiupoko sale was one of three homes sold for over $2,000,000 in January. There was one more big sale in Launiupoko with the third home located in Ka’anapali Golf Estates.
- The highest priced condo to close in January was located in the Wailea Beach Villas. The 3 bedoom, 3.5 bath condo with 2,889 square feet of living space closed for $3,800,000.
- That was one of four condos that sold for over $1,500,000 during the first month of 2015. The other units were located at Honua Kai, Wailea Ekahi and Sugar Cove in Spreckelsville.
- The highest priced paid for a parcel of land in January was $2,500,000 for 133 acres located off of Baldwin Avenue between Paia and Makawao. This ocean view acreage has the potential for further subdivision.
- That was one of three land sales over $1,000,000. The other two were located in Pukalani and Launiupoko .
- There were 9 REO or bank owned transactions that closed in January. That is up from the 4 bank owned transactions in January of 2014.
- There were 6 short sale transactions that were completed successfully in January. That is down from the 10 short sales in January of 2014.
A Few Comments on the December Stats
There are a few items from the statistics that merit additional commentary. In the December stats, condo activity made a comeback after seeing six consecutive months of lower sales than the year prior. I was anxious to see if we might see successive months of improved condo sales, but that was not to be the case. It will be interesting to see watch buyer demand for condos through the season. There are some positive signs as the January pending sales will show below, but there are also some headwinds in place. Canadians have been active condo buyers for quite a while, but the much weaker Canadian dollar may put a damper on the number of condo buyers from North of the Border.
The number of luxury property sales also seems to be relatively low for January. The three homes sold for over $2,000,000 are down quite a bit from the eight sold last January. The four condo sales over $1,500,000 are down from the seven sales last January. This will be something else to keep an eye on going forward. With a few luxury developments coming to market in the Wailea and Makena area this year, we may be seeing some buyers deferring their buying decisions.
The lower number of high end sales in January is likely one of the drivers for the decrease in median price compared to last year. This is a good reminder that changes in median price are not exclusively a reflection of changes in property values. Home and condo prices continue to rise despite the lower medians. Land prices are also rising but nowhere close to the 89% change in median. Land median price is particularly vulnerable to big fluctuations due to the small sample size of properties for sale.
January Pending Real Estate Sales
With the holidays marking the official start of Maui’s busy season for Real Estate, January is the first full month of our buyer’s season. We are able to get some sense of how our buyer’s season is starting by taking a look at the January pending sales. The chart below compares the number of properties that went under contract in January of 2015 to the number that went under contract in 2014.
The chart above shows improved performance in all three property types. I don’t want to go overboard on the significance of these numbers as we tend to see a lot of variability in sales month to month, but this is a generally positive sign for real estate activity during the start of this buyer’s season.
What Does it all Mean for Buyers and Sellers?
While our stats posts tend to focus on the island as a whole, the reality is that Maui is made up of many smaller markets. We see varying levels of supply and demand based on price point, community and even neighborhoods. The Maui Real Estate Team would welcome the opportunity to sit down with buyers and sellers to discuss market conditions specific to your real estate interests. Contact The Maui Real Estate Team for a free consultation so we can discuss your real estate needs.
Maui Real Estate Blog
Sneak Peek at the October 2014 Maui Real Estate Statistics
It’s time for our monthly look at the pulse of the Maui Real Estate market. Our sneak peek at the Maui Stats gives a look at median prices, sales volume, pending sales and a few other notable numbers from the October Maui Real Estate Sales activity. We also give our thoughts on some of the more eye catching numbers and what it all means for prospective buyers and sellers. Without further ado, here are the October numbers.
October Maui Real Estate Sales Volumes and Medians
By my count there were 83 homes sold in October at a median price of $566,000. Last October, there were 82 homes sold at a median price of $540,000. That calculates to a 1% increase in sales activity and a 5% increase in median prices.
Maui Realtors have reported 94 condo sales for October with a median price of $407,000. By comparison, there were 104 condos sold in October of 2013 with a median price of $360,000. That means that October 2014 was 10% lower in sales volume and 13% higher on price.
By my count, there were 14 land sales reported in Maui during October with a median price of $467,500. Last October, there were 23 sales with a median price of $370,000. That is a 39% drop in sales activity and a 26% increase in median price when comparing October 2014 to October 2013.
Notable Numbers from The October Maui Real Estate Sales
While compiling this month’s medians and sales volumes, I came across some other numbers that I thought were worth sharing. Here are some of the high sales and other notable closes from the October real estate transactions.
- The highest priced home to sell in October was located in Kihei. The 4,800 square foot oceanfront home on Halama Street closed for $5,750,000.
- That was one of four home sales over $2,000,000 in October. The other high dollar closes were in Wailea, Makena and Paia.
- The highest priced condo sale in October was at the Andaz Residences in Wailea. The three bedroom condo closed for $5,495,000. That is the third condo to close at Andaz and the first sale in eleven months. There are nine units still for sale in Wailea’s newest luxury beachfront condo development.
- There were 9 total condo sales over $1,500,000 last month including the Andaz transaction. Honua Kai had the most activity with five closes. There were also sales at Wailea Ekahi, Wailea Elua and Hoolei.
- The highest priced piece of land was a lot on the beach in Ka’anapali. The 1.16 acre parcel sold for $5,600,000.
- There were 11 bank owned transactions that closed in October. That is up from the seven that closed in October of 2013.
- Short sale transactions continue to be slow with 4 successful transactions closing last month. There were 24 short sales in October of 2013. This 83% drop in short sale transactions stems from improved equity positions for sellers.
The October Maui Real Estate Market saw the continuation of recent trends. Home sales are roughly keeping pace with last year, while condo and land sales are down. As discussed in the September stats, it appears as if a decrease in inventory for entry level condos is driving the decrease in condo activity. I did not delve into the land market in quite the same level of detail, but anecdotal evidence would also suggest that a shrinking inventory of lower priced lots may be contributing to the lower sales volume. Looking at the October 2013 sales, the totals from that month were buoyed by a large number of new development sales in Haiku. The lots in that subdivision were priced lower than other sales of comparable properties.
The one other number from this month’s stats that I found noteworthy was the high number of luxury condo sales. There had been a decrease in the sale of condos priced over $1,500,000 over the last couple of months including zero sales in that price range during September. I had a close eye on the October sales to see if this might be a trend or just variability in the market. It appears to be the latter. The nine total sales was buoyed by the continued strong interest in Honua Kai. There have now been 22 sales at Honua Kai over $1,500,000 since the start of the year.
October Pending Sales
For the most part, October sales stem from contracts that were agreed upon one to two months prior to closing. To get a better sense of more current buyer demand, we also documented the pending sales from last month.
It is interesting to see that home pendings are up significantly compared to last year. Condo sales continue to under perform compared to last year. Land pending appear to be down significantly, but a little digging helps explain the discrepancy. The October 2013 numbers were inflated by 14 contracts at the Peahi Hui development in Haiku. Buyers actually signed reservation agreements for that community dating back to June of 2013. Formal contracts weren’t penned until October when final subdivision approval was granted.
What Does This Mean for Buyers and Sellers who Are Interested in The Maui Real Estate Market?
Now that it is November, we only have about one month left until the start of our peak real estate season. As peak season approaches, what do the current conditions tell us about what buyers and sellers might expect? For buyers, it will depend in part on where you are searching in the market. There is quite a bit of variability in market conditions depending on price and location. In general, lower priced home and condo buyers are going to find limited inventory and a competitive market. Really well priced homes and condos in most market segments have the potential to attract multiple offers. There is typically more inventory to choose from and less competition at the high end of the market, but you may also find some more resolute sellers with the means to wait for pricing that fits their needs. Sellers will need to take into account market conditions in their particular neighborhood and price point when considering a go to market strategy. Overpriced properties are sitting in this market. If a seller needs to or wants to sell quickly, they need to price as close as they can to recent comparable sales. Contact The Maui Real Estate Team if you are considering buying or selling property on Maui, we would welcome the opportunity to sit down with you for a free consultation to discuss your real estate needs.
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.
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.
Maui Real Estate Blog
Wailea and Makena Mid Year Real Estate Market Update
We may be almost midway through August, but I wanted to follow through on our promise to provide midyear market updates for a hand full of Maui communities. Today, we are going to cast the spotlight on the resort communities of Wailea and Makena. This corner of Maui is a a world renowned resort travel destination. Wailea and Makena are synonymous with stunning beaches, great golf, fine dining, luxurious resorts and high end shopping. All of these amenities combine to make Wailea and Makena desirable locales for second home owners. The following is a comparison of the sales numbers between the first half of 2012 and 2011 for the Wailea and Makena luxury markets.
There were 17 home sales reported in Wailea/Makena with a median sales price of $1,635,000 during the first six months of 2012. During the same period of 2011, those totals were 10 sales with a median price of $1,472,500. That is a 70% increase in volume and an 11% increase in median prices. There were 58 condos sold in Wailea with a median price of $780,000 during January through June of 2012. The numbers for the first half of 2011 were 65 condos sold with a median price of $975,000. That is a 17 percent drop in volume and a 20% drop in median price. There was only one land sale in Wailea/Makena during the first six months of 2012. There were two during the first six months of 2011.
Here are some other noteworthy numbers for the first half of 2012.
- There were three home sales in Makena during the first six months of 2012. By comparison, there were no sales in Makena during the first six months of 2011. On the other side of the coin, there were no condo sales in Makena during the first six months of 2012. There were four Makena condo sales in the first six months of 2011.
- The high sale during the first six months of 2012 was $9,850,000 for a 4,155 square foot home oceanfront home in Makena Place. The high in the first six months of 2011 was $5,200,000 for a 5,967 square foot home in Wailea Golf Vistas.
- The highest priced condo transaction in Wailea for the first half of 2012 was $5,992,000 for a 2,983 square foot unit at Wailea Beach Villas. The high condo sale in the first half of 2011 was $12,500,000 for a front row unit at Wailea Beach Villas.
- The lowest priced home sale during the first six months of 2012 was $775,000 for a bank owned home in Wailea Pualani. The lowest priced home sale in the first half of 2011 was $900,000 for a home in Wailea Kai.
- The lowest priced condo sale during the first six months of 2012 was $400,000 for a two bed/two bath unit at Grand Champions. Last year, the low priced sale was $360,000 for a one bedroom, bank owned unit in Wailea Ekahi.
- There were a total of six REO sales and one short sale in all of Wailea and Makena during the first half of 2012. The numbers were eight REO sales and eight successful short sales in all of Wailea and Makena during the first half of 2011.
The most striking element of the Wailea and Makena numbers was the divergence in market performance between homes and condos. While activity was clearly up for home sales, the numbers trended down for the condo market. I can’t say there is a clear cut reason for the difference in activity. That being said, I have a few thoughts. Looking at the home side of the equation, the bump may be a case of buyers responding to values. At our broker Billy’s suggestion, I looked at original asking price vs. sales prices for homes in Wailea. Looking at the five highest priced sales, the difference between original asking price and sales price was 10%, 15%, 53%, 28% and 20% respectively. The 10% number difference between original list price and sales price on the Makena Place sale may actually be a little low. This home had been on and off the market without selling dating back to 2007. Back then, it was priced as high as $14,900,000. While I can’t say this unequivocally, it appears that buyers responded to these properties in part because of a perception of value. An increase in well priced properties may well be the driver for the increase in activity.
I think this is something worth noting for luxury sellers. There is still a pretty healthy luxury inventory on the market. The buyers like Peter Thiel are more an exception than a rule. Luxury buyers are showing that they are value conscious in this market. Motivated sellers may want to take heed and position their home so that it stands out as a value among the rest of the inventory.
The reasons for the decrease in activity in the luxury condo market are a little murky. In my search for answers, I compared the sales volume of individual condo complexes in the Wailea and Makena area. You can see this comparison in the chart below.
There was one thing that stood out the most while looking at this chart. There appears to be a sharper decline in activity on the high end of the condo market. Among the places that saw sharper declines in activity, Wailea Palms is the only complex with a median less than $1,000,000. Other complexes with more notable declines included Papali, Wailea Beach Villas, Hoolei, Wailea Point, Makena Surf and Na Hale O Makena. All of these complexes are condos with median prices over $1,000,000 and in some cases well over $2,000,000. I looked back at all of the sales and my suspicions appear to be supported. There were 30 sales over $1,500,000 during the first six months of last year. This year that number shrank to 15 sales. What’s driving a high end condo slow down in Wailea and Makena? That’s tough to say. The decline in volume at Papali and Hoolei may stem from a decrease in inventory. These are new developments that have sold all but a few of the original developer listings. There is only one new developer listing remaining at Papali and the majority of the twelve listings at Hoolei are resales. With the rest of the luxury market, lack of inventory isn’t driving the decline in activity. There are an additional 39 condos on the market over $1,500,000. If these sellers are serious about selling, they may want to take a page from the book of Wailea luxury home sellers and start to sharpen their pencils.
The land market in Wailea and Makena remains limited. The one sale this year was for a property in Makena with upside development potential. There are fourteen vacant lots listed currently. Two of the fourteen are under contract. Looking at this inventory, many of these lots are resales. I can’t see a lot of activity in this market segment unless more of these listings become values in the eyes of buyers.
Contact The Maui Real Estate Team if you have questions or would like assistance buying or selling Wailea and Makena Properties. Search MauiRealEstate.com for the current inventory of Makena and Wailea Condos for Sale. You can also peruse the current inventory of Makena and Wailea Homes for Sale.