Maui Real Estate Advisor
Market Overview August
|
Aug
|
Sales
|
Sales Prior Month
|
% Change
|
Sales Prior Year
|
% Change
|
|
Homes
|
65
|
96
|
-32%
|
83
|
-22%
|
|
Condos
|
50
|
63
|
-21%
|
115
|
-57%
|
|
Land
|
3
|
7
|
-57%
|
10
|
-70%
|
|
Aug
|
Median Price
|
Median Prior Month
|
% Change
|
Median Prior Year
|
% Change
|
|
Homes
|
625,000
|
615,000
|
2%
|
639,996
|
-2%
|
|
Condos
|
632,500
|
575,000
|
10%
|
592,000
|
7%
|
|
Land
|
425,010
|
1,025,000
|
-59%
|
662,500
|
-36%
|
|
Aug
|
Current Inventory
|
Inventory Last Month
|
% change
|
Months of available inventory
|
|
Homes
|
1,092
|
1,069
|
2%
|
11.38
|
|
Condos
|
1,552
|
1,508
|
3%
|
24.63
|
Sales slower still
Get ready for more of the same
It seems like the real estate market in most of the US is a buyer's market. Here on Maui sales of all kinds of property are slow, slow, slow.
But the prices, at least the median prices, remain as solid as this rock in the Pacific that we live on.
That doesn't mean there aren't deals. We are seeing an increase in the number of short sales and foreclosures, and a lot of sellers are "getting real" in the slow market.
It's a great time to buy.
Condo sales rebound slightly
Sales volume still well below "normal"
Those hoping for July's rebound to carry over to August were sorely disappointed. After a lackluster June and July, only 50 condominium sales were recorded on Maui in August. Compare that 50 sales to 115 one year ago and 187 in 2005.
In most markets that kind of sales decline coupled with rising inventories (we now have enough condos on the market to last for over 2 years at this sales rate) would surely result in lower selling prices.
But the median rose to $632,500. That is not only the highest price this year but it is the 3rd highest price since 2003. In June of 2006 the median price spiked to $649,000 and in November of 2007, the median came in at $640,156.
As usual, the devil is in the details. 17 of our 50 sales were in Wailea. The median price of the properties sold there was $2,350,000, and they were never in the MLS, so they show they were on the market zero days.
If we pull Wailea out of the stats, we see there were only 33 sales. The median for those condo sales was only $410,000, which is down $105,000 from the median in July with the same adjustments applied.
So maybe prices really are declining and are masked by the impact of Wailea. Maybe the "Wailea adjusted median", the WAM, will become one of our new sales metrics.
Area Sales
Condo sales in Wailea held steady in August with 17.
Kihei sales, however, slumped to only 15. That was down from 26 the previous month and 52 in August of 2007. The median sales price was also off by $95,000 compared to last year.
Once again only 8 sales recorded in Napili - Honokowai, the same as last month. That's down from 18 a year ago. The median price was up by about $11,000.
Kaanapali recorded 3 sales, but the median there was only $625,000, off by 57% from last year.
Kapalua recorded zero sales, and Lahaina had one distress sale.
High and Lows
For the third month in a row there were no sales at Harbor Lights. That trend won't continue, as I've seen one closing in September already recorded.
The lowest price paid for a condo this month was at Kihei Shores. It was a 2 bedroom, 1.25 bath. It was listed for $185,000 and sold for $185,000.
At $2,995,000, the spendiest condo was at Papali Wailea. The condo is a 3 bedroom, 3.5 bath. What I can tell you about Papali is that the project is nearing completion and they have a really annoying website that tells you nothing.
Potts' Picks - Best Buys
There are now 42 Harbor Lights on the market. They are the lowest priced properties on Maui by a good margin. Yet there were no sales for 3 months. There has been one sale registered for September, but there are no more pending. The reason? The lowest priced units are short sales.
Lending institutions and service companies are taking a very long time to respond on short sales. And if short sales, listed at very low prices, are on the market they make it hard for normal "market priced" non-short sales to move.
Twenty-eight of the 35 lowest priced condos in Maui are at Harbor Lights. Yet there have been no sales in the last 2 months, and there are no pending sales. We have a pretty good idea of what's going on. We'll give you some details next month.
Something that looks to be pretty affordable that you can live in is Iao Parkside IV-C. It is a 3 bedroom, 2 bath with 2 parking spaces listed at $329,000. It is #333241 in the Maui MLS.
For this month's best buy we are featuring a short sale at aina nalu. This one bedroom one bath originally sold for $475,000. It is on the market for $360,000. The unit is almost new, fully furnished and has very good rental income. See it at www.AlohaPotts.com at MLS #333469.
Our favorite upscale listing this month is at the new complex, Honua Kai. This is a large 2 bedroom unit near the front of the building with fabulous views. The price is only $1,399,000. Buying a resale at Honua Kai can be tricky, and you need an agent that knows what he or she is doing or you could have issues. You can see the full listing on our website, MLS #333517.
For more information on these or any other listings send an email with your request to lee@alohapotts.com or, see all of the listings on Maui at www.alohapotts.com.
Homes sales drop
August sales 2nd lowest this year
After a few good months, single family home sales declined to their lowest level since January.
Of the 66 homes sold, 32 were new project sales. Seventeen of the new project sales were classified as "affordable". So, there were only 34 resales, which means selling is very slow for folks that want to sell.
Overall the median price was up slightly to $625,000. That is the highest median price since January.
How can it be that in a market where sales are sinking median prices are still holding? More curious, although is makes statistical sense, is that median prices in Wailuku rose even though half of the sales there were "affordables".
Even more curious, is that if you remove the affordables from the mix the median price climbs all the way to $800,000.
There is a similar effect on DOM, Days on Market. With the new development properties in the mix the DOM is 161. Remove them and the DOM climbs to 195.
Could this be good news if you need to sell?
If you want to sell the oddly high prices in the rest of the market may present an opportunity for a serious seller.
Area Sales
The Central area of Kahului/Wailuku accounted for more than half of sales last month. Half of those were the aforementioned affordables.
No other market area had double digit sales. Kihei reported only 8 sales and the next highest area was Lahaina with 3 sales.
Highs and Lows
Aside from the affordables, the lowest priced home to sell was in Makawao. It is a 2 bedroom, 1 bath home of 864 square feet with a "non-conforming" ohana that sold for $390,000.
In Lahaina a 4 bedroom, 4 bath home of 3,844 square feet in the Launiupoko area sold for $3,400,000.
Potts' Picks
A new 4 bedroom, 1.5 bath came to market in Kihei at $432,000, and it's already had one price reduction. The new price is $386,000. This short sale property appears to be in pretty good condition and is in a good location. If you would like to see it the MLS # is 333228.
For luxury, how about 11,076 square foot home on Kaanapali Beach. That's right, 11,076 square feet; 8 bedrooms, 9.5 baths with pools and Pacific in your backyard. It's MLS #332824 and the asking price is a cool $23,800,000.
For more information on these or any other listings send an email with your request to lee@alohapotts.com, or see all of the listings on Maui at www.alohapotts.com.
Lot sales still slow
Inventory still rising
There are now 539 parcels of land for sale on Maui. Only 3 sold last month.
If you run the sales to inventory numbers on that you'll see that there are enough lots for sale to last roughly... forever.
For more information on vacant land, see all of the listings on Maui at www.alohapotts.com or send an email with your request to lee@alohapotts.com.
Get more information and details
To get more information on property and trends, you can search all properties listed for sale at www.alohapotts.com. If you can't find what you're looking for there, send us an email at lee@alohapotts.com, and we'll do our best to get an answer for you. As we get more requests for information, we'll add new sections to the website, newsletter or both.
About The Aloha Potts Team
Aloha Potts is a team comprised of L. Lee Potts, MBA, REALTOR® R(S) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. We are business people, and we treat our clients with the same care and service attitude that we would like to receive when we do business. We are in business for pleasure and profit. We expect that most of our clients will enjoy the property they own in Maui (pleasure), and it would be nice for everyone if your property performs well for you (profit). Real estate can be highly speculative, and profits are never guaranteed. So if you are buying property
in Maui, it's a good idea to surround yourself with a professional team.
Lee Potts is the former President of an international software company and former Marketing VP of a publicly traded franchise organization. Lee and Barbara are both licensed under Alohapotts.com Inc. in Lahaina and affiliated with Keller Williams Realty Maui, Kihei, Hawaii.
Barbara Potts was a CPA with Ernst and Young before joining Apple Computer back when both Steve's were there (Jobs and Woz). She was also Director of Strategic Marketing for Grass Valley Group, a division of Tektronix, and a business broker in California.
Copyright 2008 L. Lee Potts
Statistical information in this newsletter is based on actual sales information reported to the Realtors Association of Maui, Inc. While this information is deemed reliable, it is not guaranteed. This newsletter is for informational purposes only and not intended as advice for investment or any other purposes. Real estate is considered to be highly volatile, and purchasers and sellers of real estate should always seek expert outside advice before investing.
