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.

This chart compares looks at the sales in Wailea for the year to date compared with the current active inventory on the MLS.

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.

Kaanapali Condos
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.

This chart compares the year to date sales in the Kaanapali area with the current inventory of Kaanapali listings on the MLS.

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.

Kapalua Condos
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.

This chart compares the year to date sales vs the active MLS inventory for condos in the Kapalua Resort.

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.

Pete Jalbert

Maui Real Estate Blog

May 2015 Maui Real Estate Statistics

Needless to say, this month’s stats post isn’t a sneak peek. We are over halfway through the month and just getting around to our May stats. Sometimes blogging has to take a back seat to other parts of the business. The good news is that I have been having a tough time carving out time to blog due to obligations with buyers and sellers. Enough about me and on to the stats. This post includes information on sales volume, median prices, notable sales and pending sales. I also give a few thoughts on what it all means for buyers and sellers. Without further ado, here are the May 2015 Maui Real Estate Statistics.

May Maui Real Estate Sales Volumes and Median Prices

The chart compares the real estate sales volumes in Maui County during May 2014 and May 2015.

There were 88 home sales reported in Maui County last month with a median price of $607,097. Last May, there were 86 sales reported with a median price of $537,500. That is roughly a 2% increase in sales volume and a 13% increase in median price when comparing this May to last May.

There were 108 condos reported to have been sold in May of 2015 with a median sales price of $469,500. In May of 2014, there were 117 sales reported with a median sales price of $472,000. That calculates to an 8% decrease in sales volume and just under a 1% decrease in median price.

There were 12 land transaction reported by Realtors in Maui County during the month of May with a median sales price of $563,750. By comparison, there 20 sold last may with a median price of $575,000. Those numbers calculate to a 40% drop in sales activity and a 2% drop in median price.

Other Notable Numbers from The May Maui Real Estate Sales Activity
While compiling the sales volumes and median prices, I came across some more notable numbers that I thought were worth sharing.

  • The highest priced home sale last month was $5,695,000 for a 26.8 acre property in Haiku on Maui’s North Shore. The Haiku Farms property included 7 dwellings and 6 county water meters.
  • The Haiku Farms Sale was one of 6 home sales on island over $2,000,000 in May. The other sales included 3 Kapalua homes, a home in Hana and a home in Wailea.
  • The highest price condo transaction in May was for a unit at Wailea Point. The three bedroom, four bathroom oceanfront condo sold for $5,000,000.
  • The Wailea Point Sales was one of twelve total condo transactions over $1,500,000. The other big sales included 6 at Honua Kai, 2 at Kai Malu, a Montage Kapalua, a Puamana and a Papali Wailea.
  • The highest priced land sale in May was $1,425,000 for a 10.2 oceanfront acres in Haiku.
  • There were 12 bank owned or REO sales last month. By comparison, there were 8 REO sales last May.
  • There were only 3 successful short sales completed last month. There were 10 short sales last month. Short sales continue to decrease as appreciation continues.

Some Quick Thoughts on the Maui May Real Estate Sales Numbers
The May Maui Sales numbers stuck pretty close to the script for what we have seen thus far in 2015. Home sales were slightly above last year’s numbers. That is now four months out of five where sales have outperformed the same month from the previous year. Condo and land sales were both down. That makes four out of five months that condo sales have been below the same month the year prior. Land sales have been down three out of five months compared to the same month from the year before.

We typically, don’t spend a whole lot of time discussing change in median prices on the blog. It’s a bit of frustrating subject. All too often, I see discussions of the Maui Real Estate statistics where changes in median are depicted as a reflection of changes in property values. While appreciation can play a part, the biggest shifts in median are driven by the change in composition of sales. I thought this was worth bringing up as home medians pushed above $600,000 for the second time this year. We are seeing modest appreciation, but we are also seeing more activity at higher price points and fewer properties available in the lower price ranges.

Pending Sales in May
The majority of real estate transactions on Maui take 30-60 days to close. With a few exceptions, the sales in May were based on contracts penned in March and April. With that in mind, we wanted to look at buyer demand in May. The following offers a comparison of Pending Sales in May of 2015 and May of 2014.

This chart compares pending sales for homes, condos and land in Maui County during May 2014 and May 2015.

May 2014 and May 2015 were very close to each other in terms of pending sales activity. There was one more home, four fewer condos and three more parcels of land that went pending. This would suggest that we shouldn’t see too big of a difference in between the June 2015 and June 2014 sales.

What Does This All Mean for Buyers and Sellers?
Market conditions remain unchanged on Maui. Buyers interested in the market will find varying market conditions depending upon geography and price point. Homes priced at or below the market medium tend to be scarce and have the highest demand. Well priced, clean properties below the median sales price can attract multiple offers and over asking bids. As you move up in price, demand will tend to go down, but well priced properties can still sell quickly. Before sellers begin to pop the champagne corks, this isn’t an out and out frenzied sellers market. Over priced properties are tending to sit and not all areas of the island are seeing the same levels of demand. Sellers will need to take into account market conditions specific to their town and neighborhood when developing go to market pricing. Contact The Maui Real Estate Team if you are considering entering the Maui Real Estate Market. We would be happy to sit down with you to listen to your needs and give you an update on market conditions specific to your interests.

Pete Jalbert

Maui Real Estate Blog

Sneak Peek at the March 2015 Maui Real Estate Statistics

The beginning of April means our peak visitor season is wrapping up. It is also time to bid farewell to the bulk of the Humpback Whales that winter in the waters off our coastline. The end of another month also means another opportunity to take a look at how the Maui Real Estate market is performing. This sneak peek at the March Maui Real Estate Statistics includes information on sales volume, median pricing, pending sales, notable numbers and a few thoughts on the stats and the state of the market for buyers and sellers. Without further ado, here are the March numbers.

March Real Estate Sales Volumes and Median Prices

This chart compares the real estate sales volumes for Maui County during March of 2014 and 2015

By my count, there were 83 homes sold in March 2015 at a median price of $625,000. There were 70 homes sold in March of 2014 with a median price of $590,500. That calculates to a 19% increase in sales volume and a 5% increase in median price.

I counted 122 condos sold in March 2015 at a median price of $442,500. By comparison, there were 127 sold with a median price of $420,000 in March of last year. That is a 4% decrease in volume and a 5% increase in median price.

I counted 14 lots sold in Maui county during March with a median sales price of $528,500. That is the exact same number of sales as March 2014 when there were 14 land transactions with a median price of $507,500. That calculates to a 4% increase in median when comparing this March to last March.

Other Notable March Maui Real Estate Sales Numbers
While compiling the sales volumes and median prices, I came across a few other numbers that were worth sharing from the March Maui Real Estate sales activity.

  • The highest priced home sale on Maui in March was $14,500,000 for a beachfront home in Kihei. The 5,682 square foot home is located on a half acre lot directly on Keawakapu Beach.
  • This was one of five home sales over $2,000,000 for the month. In addition to the Keawakapu home, there were sales in Kapalua, Spreckelsville, Olinda and one additional sale in Kihei.
  • The highest priced condo transaction last month was a 3 bedroom, 3.5 bath unit at Montage Kapalua Bay which sold for $3,995,000.
  • It was a busy month of sales for luxury condos on Maui with 13 closes over $1,500,000. There was one additional close at Montage, 4 sales at Honua Kai, 2 at Ka’anapali Ali’i, 2 at Wailea Point, a Wailea Elua, a Na Hale O Makena and a Masters.
  • The highest priced land sale last month was $1,250,000 for a 5.12 acre lot in Launiupoko.
  • There were 12 bank owned sales that closed in March as compared to 4 bank owned sales last March. There were 4 short sales that closed in March compared to 12 successful short sales last March.

Some Quick Thoughts on the March Stats
March saw a resurgence in home sales activity with sales outpacing both last month and the same period last year. The strength of the market varies by price range with homes below and close to the median sales price seeing the greatest amount of demand and activity. While Luxury home sales improved last month, we are still behind the pace of sales for 2014. This is an interesting market segment as there is a lot of inventory providing abundant selection for buyers. That said, it isn’t a true buyer’s market in the sense that there aren’t a lot of really motivated sellers. The majority of home owners in the higher price ranges tend to have additional staying power that thus far has enabled them to hold out for higher prices.

Condo sales activity dipped below the levels that we saw during March of 2014. Overall sales volume is being impacted by a soft middle of the market specifically in the vacation rental condo market. I would surmise that some of the dip stems from a lack of activity among Canadian buyers. The weakened Canadian Currency has put a good number of potential Canadian buyers on the sidelines. You could also argue that some of the decreased activity in the middle of the condo market may be due to inflated asking prices. With demand down, it is surprising to see how many condos are priced well above recent comparable sales. That said, this is another area of the market where seller motivation appears to be lacking. There are quite a few sellers with enough means and sufficient rental revenue to enable them to hold out for higher pricing. The lower price points of the market continue to see pretty healthy demand. The high end of the market condo market was particularly strong last month with 15 sales over $1,500,000. There is a good selection of high end condos on the market and buyers appear to be taking advantage of the quality available.

The land market continues to chug along at about the same clip as what we were seeing in 2014. Limited financing options and a lack of inventory at lower price points have been the biggest constraints to increased sales activity.

March Maui Pending Sales
Sales are always a lagging indicator of current demand. With that in mind, we started tracking pending sales in our monthly statistics posts. Here is a comparison on what we were seeing going under contract in March of 2015 compared to March of 2014.

This chart compares pending sales in Maui County during March of 2014 and March of 2015

It appears as if March was a pretty strong month for buyer demand for all but land, as both home and condo pendings outpaced what we saw in March of 2014. It is good to see the last full month of buyer’s season end on a good note. It will be interesting to see if the market sustains itself as we transition out of peak buyer’s season later in April.

What Does it Mean for Buyers and Sellers?
Maui market conditions have not seen any significant changes throughout our peak winter sales season. Buyers will find that market conditions vary pretty widely based on price point and geography. The greatest competition among buyers is occurring at or below the median sales price for each community. That said, buyers shopping at higher price points may find that well priced properties can go quickly at almost any price point. It all depends in part on demand within the specific community. As a result, buyers should prepare themselves so they can act quickly when the right opportunity comes along. We strongly advise buyers who will need financing assistance to get pre-approved prior to their search. Prospective Sellers should consult with a Realtor to better understand market conditions specific to their neighborhood and community. While some parts of the market are strong, other parts still have a glut of inventory. Sellers who want to sell quickly should take a strong look at depth of inventory and recent sales prices when developing their go to market pricing. Contact The Maui Real Estate Team if you have questions about buying or selling property on Maui. We would welcome the opportunity to sit down with you to learn more about your real estate needs.

Pete Jalbert

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.

This table compares Maui Real Estate Sales Volumes for Homes, Condos and Land during November of 2013 and November of 2014
This chart compares the real estate sales volumes for homes, condos and land in Maui County during November of 2013 and November of 2014

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.

This chart compares the number of properties in Maui County that went under contract (pending sales) during November of 2013 and November of 2014

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.

Pete Jalbert

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.

A Comparison of Real Estate Sales Volume in Maui County during May 2013 and May 2014
This chart compares real estate sales volume on Maui during May 2014 and May 2013

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.

A comparison between the number of properties that went pending in May of 2013 and May of 2014

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.

Pete Jalbert

Maui Real Estate Blog

Wailea and Makena Market Report: 2013 Year in Review and 2014 Outlook

Earlier this winter, I decided to do some in depth market reviews on a handful of communities around the island. I was able to publish posts on Paia and Spreckelsville, before getting sidetracked. I have wanted to take on the resort markets of Wailea and Makena for quite some time. This is a post that has been sitting in some form of a draft for the better part of the month. A busy schedule as a Realtor and a new dad, combined with the breadth of this market has made it tough to put the finishing touches on this post. Today, I finally got over the hump.

The Wailea and Makena resort communities are home to some of the more expensive real estate on island. Homeowners are drawn by the weather, the incredible beaches, shopping, dining, resort amenities and golf courses. In this post, we wanted to compare 2013 sales to what we saw in 2012. We also want to provide a few thoughts on what you might expect for the rest of 2014 in the Wailea and Makena market. Since we are almost to the end of the first quarter of 2014, we have the advantage of being able to review some of the initial sales data for the year. Without further ado, here are the numbers for Wailea and Makena in 2013.

A comparison of real estate sales volumes in Wailea and Makena during 2013 and 2012

There were 27 homes sold in the Wailea area with a median price of $2,750,000 during 2013. There were 26 homes sold during 2012 with a median price of $1,387,500. That is roughly a 4% increase in sales volume and a 98% increase in median price.

During 2013, there were 123 condos sold in the Wailea area with a median price of $1,100,000. The 2012 numbers were 114 condos sold with a median price of $757,500. That is approximately an 8% increase in sales volume and a 45% increase in median price.

During 2013, there were 13 lots sold with a median price of $1,225,000. There were 5 lots sold during 2012 with a median price of $875,000. That is a 260% increase in sales volume and 40% increase in median price.

In addition to the numbers above, here are a few other numbers that I thought were worth sharing regarding the Wailea and Makena Real Estate market during 2013.

  • Of the 27 homes sold, six were in the Makena area.
  • The high sale was $9,200,000 for an oceanfront home at Makena Place.
  • The Makena Place transaction was one of 14 sales over $2,0000,000. It was one of 7 sales over $5,000,000. In 2012, there were 8 sales over $2,000,000 with 3 sales over $5,000,000.
  • There were only 2 homes sold for under $1,000,0000 in Wailea during 2013. That is way down from the seven sold under $1,000,000 in 2012.
  • The high condo sale was $11,395,000 for a Villa at The Andaz Residences.
  • The Andaz close was one of 34 condo sales over $1,500,000 in 2012. That was an increase over the 27 sold for $1,500,000 or more in 2012.
  • Kai Malu and the Palms at Wailea were the condos that had the most sales activity with 23 sales and 16 sales respectively.
  • Only 3 of the 123 condos sold were in Makena. There was one unit sold in Na Hale O Makena and two units at Makena Surf.
  • There were only 2 condos sold in Wailea for less than $500,000 in 2013. That was down significantly from the 15 sold under $500,000 in 2012.
  • The high sale for land was $10,000,000 for 159 acres across the street from the ocean in Makena.
  • There were 5 bank owned sales (REO) in Wailea in 2013. That is a 50% reduction from the 10 that sold in 2012.

Looking at the Wailea and Makena sales data for 2013, the big jumps in median prices are arguably the most eye catching numbers. All too often the change in median prices can be misrepresented as a representation changes in property values. While it is safe to say there was some appreciation in Wailea, it is also pretty clear we didn’t see 98% increases in home values, 45% increases in condo values and 40% increases in land values. The big bumps in median come from a decrease in sales activity at the low end of the market and an increase in ultra luxury sales.

The inventory of homes under $1,000,000 and condos under $500,000 decreased sharply in 2013. Buyers searching for lower priced opportunities had options in places like Wailea Fairway Villas and Grand Champions. In 2013, inventory in both of those complexes decreased and prices increased. That pushed prices on all but two sales in those complexes above $500,000. The same trend was evident with Wailea Homes. In 2012, there were quite a few opportunities to get into the market below $1,000,000 in neighborhoods like Wailea Kai, Wailea Pualani and Wailea Kialoa. Those opportunities were far more limited in 2013 with only 2 home sales below $1,000,000.

While there were fewer bargain hunting opportunities, more buyers were willing to dish out a premium for Wailea and Makena Properties. There was a 26% increase in the number of condos sold over $1,500,000 and a 75% increase in the number of homes sold over $2,000,0000. This was part of an island wide increase in luxury sales activity. As we have postulated in other statistics posts on our blog, big years on the stock market tend to make for big years for luxury real estate sales on Maui.

Being that we are almost done with the first quarter, there is more opportunity to comment on current real estate market dynamics in Wailea and Makena. The chart below compares the number of properties sold this year as of March 17th with the number of properties sold last year through March 17th.

This chart compares the volume of real estate sales in Wailea and Makena for the year to date up until March 17th with the same period in 2013.

As you can see from the chart, the sales activity looks pretty similar to what we saw during the start of 2013. Home sales are up modestly by 2 transactions, condo sales are the same and land sales are off by 1 from last year’s pace. There were a few other things that I thought were worth sharing from year to date sales activity.

  • As mentioned previously, we saw a decrease in sales under $500,000 for condos and under $1,000,000 for homes in Wailea during 2013. That trend has continued into 2014. There have been no condo sales under $500,000 and no home sales under $1,000,000 to date. There are no homes listed or pending for less than $1,000,000. There are only two pending sales under $500,000 for condos with no active listings in that price range.
  • For the most part, the Wailea market is still trading for less than peak market prices. There is one exception though as Wailea Elua saw its two highest ever sales prices in the last couple of months.
  • The high home sale thus far this year was $9,300,000 for an oceanfront home in Makena Place. As of March 17th, that was one of 4 home sales to date this year over $2,000,000 in Wailea and Makena.
  • The high condo sale thus far this year is $4,450,000 at Wailea Point. As of March 17th, that was one of 9 condo sales over $1,500,000 in Wailea and Makena for the year to date.

What can we expect for the rest of the year in Wailea and Makena? Demand thus far appears to be close to what we saw last year. I would anticipate that to continue if the stock market and overall economy stay the course. We have seen a decrease in Canadian luxury home buyers with the Canadian Dollar off 10% from last year. That has the potential to decrease sales volume. With the exception of lower priced homes and condos, there appears to be a pretty healthy inventory for buyers to choose from. There is over a year of active inventory for homes and land. There is just under a year of active inventory for condos, but that inventory is likely to increase. New developments are likely to have some of the biggest impact on the market. We have seen two new development go to market thus far, with at least one more and possibly three more coming to market before the end of 2014.

The first new development to hit the market was small in listings and big in price tag. Makena Sunset will consist of four condominium homes located directly across the street from Maluaka Beach. The homes will be 4 bedrooms and 4 bathrooms with approximately 4,200 square feet of living space. There will also be an additional 1,400 square feet of lanai space. Each residence has its own private pool. There is a laundry list of additional amenities offered with each of these spectacular properties. One of the four listings is under contract. The remaining three properties are offered for $10,250,000 through Makena Wailea Real Estate. The Maui Real Estate Team may represent interested parties as their buyer’s agents.

The second new development to come to market this year was the Ridge at Wailea. This is a vacant land offering with homes sites up near the Hotel Wailea. Pricing ranges from $1,550,000 to $2,800,000 for the 9 lots that are roughly a half acre in size. This development is being represented by Wailea Realty. The Maui Real Estate Team can represent interested parties as their buyer’s agent. It will be interesting to see how well this development is received by the market. The last land offering in this range was the Bluffs at Wailea. That development came out during the market doldrums of the last real estate downturn and was not well received by buyers. That land is now going to be developed as condos (more on that below).

There is the possibility of one additional land offering hitting the market this year. A second phase of Wailea Golf Estates is planned and that would include 16 additional luxury home sites. The time frame to go to market has yet to be announced.

There is at least one condo development that should hit the market this year as well. Keala O Wailea will consist of 70 condos spread over 7 three story buildings. It will be built next to the Wailea Gateway Center at the site of the aforementioned Bluffs at Wailea. The 70 condos will include 4 floor plans ranging in size from 1196 square feet to 1510 square feet. The top floor penthouse suites will be the largest units. The Keala O Wailea will prohibit vacation rentals. The community will have a nice pool area and should have big views from that location. Pricing for the development has not been announced, but it has been suggested that the prices will be “affordable for Wailea.” To be clear, that doesn’t mean affordable housing by any standard definition, but we should see starting prices under $1,000,000. Additional information on the development and sales reservations should be coming some time around the middle of this year. As with any new development on Maui, it is not out of the realm that those dates could be pushed back. If the pricing holds true to what has been insinuated, I would expect Keala O Wailea will receive strong interest from buyers.

Makali’i at Wailea is a condominium development that is scheduled to be built across from the Fairmont Kea Lani Hotel in Wailea. This complex is supposed to go to market in the last quarter of 2014 with construction planned to start in 2015 and run through 2017. Preliminary plans for Makali’i call for 68 units spread over 17 buildings of four units each. The condos will feature a modern design with a lot of glass. I saw the preliminary sketches for the condos and they will be very unique from the current inventory in Wailea. It is expected that there will be two and three bedroom floor plans with roughly 1,500 to 1,700 square feet of living space. The condos should have excellent views. The community will have a pool and club house area for residents. Makali’i will also prohibit vacation rentals. I haven’t heard anything regarding the pricing for the condos, but I would expect that they will be at a higher price point than anything at Keala O Wailea.

The impact of the new developments on the Wailea and Makena markets will be interesting to watch. I have found that activity at new developments may mean slower activity at comparable existing condos. I would think places like Kanani Wailea, higher priced units at Wailea Fairway Villas and potentially Kai Malu could be impacted by a place like Keala O Wailea. We may see an overall decrease in sales volume as the new condo developments will be unlikely to see units close until construction is complete.

Contact The Maui Real Estate Team if you are interested in buying or selling property in the Wailea and Makena area. The Maui Real Estate Team would welcome the opportunity to sit down for a free consultation. You can also search the current inventory of Makena and Wailea Condos for Sale and Makena and Wailea Homes for Sale on MauiRealEstate.com.

Pete Jalbert