Maui Real Estate Advisor - May/ June 2012

April/May 2012 Sales Statistics

While the cat’s away

In case you were on pins and needles waiting for the May edition of MREA, there’s a really good reason you missed it.  I didn’t write one.  Instead we were off running around Europe.  We visited my son in Prague and I tried to run another marathon.  We visited some wonderful friends in Austria and finished up in Barb’s ancestral homeland, Hungary. 

If you are “friends” on Facebook, you may have seen pictures of us in the Alps and probably some city shots from Prague and Budapest. It’s great to travel and see the sights, but as Dorothy said, there’s no place like home.  Especially when home is on Maui.

 Condo sales settle down, but stay fairly consistent

Condos sales had a real late winter spike.  They jumped from 83 sold in February to 130 in March.  In April they held pretty steady at 128 and drifted back down to 111 in May.  I expect those numbers to hold steady or increase slightly in June.

The inventory, the number of condos available for sale, dropped below 1,000 for the first time in years.  It appears that the peak was back in February of 2009 when there were 1,750 condos listed for sale.

So, if sales are up and inventory is down then prices should be headed up, right?  Well, yes, and no.

Prices have been on the rise for much of the last 11 months, but that was after taking a dip mid-year in 2011.  Prices spiked in April at $399,000 but slid back 16% to $336,000 in May, which is still a little less than May of last year.

So however you make the case, my gut says that prices for condos on Maui are rising.

Distressed properties still represented about 20% of the condos sold in March and 16% of the condos listed on the MLS. 

Area Highlights

Sales in Kaanapali were seesawing in April and May. The number of sales in April (17) was down 11% from March and the median sales price ($434,900) fell 24% compared to March. May numbers were not much different – sitting at 18 sales (1 more sale than the previous month) and the same median sales price ($434,950).

Kapalua’s sales volume was $2.5 million in April – down 42% from March. In May the sales volume returned that loss, coming in at $3.6 million – up 43% from April. However, there were only 2 sales and most of that gain came on the back of a single sale of an Ironwoods unit at $3.2 million.

Napili/Kahana/Honokowai had 20 sales this April – 23% fewer compared to March. May also saw 20 sales, which was only one more sale than May of 2011. April sales volume for the area was down 17% from March, coming in at $7.2 million. May sales volume was down slightly from April, coming in at $7.16 million – representing a 31% increase from May 2011.  Median sales prices have seen a gradual increase over the past 2 months – up 23% to $325,000 in April and up 6% to $343,000 in May. May’s median sales price is 40% greater than May 2011’s median sales price of $245,000.

The Kihei area had 47 sales in April, which is 27% more than March sales and 24% more than April 2011 sales. May saw only 42 sales, a decrease from the previous month, but a 16% increase from May 2011. Kihei’s median sales price in April ($226,000) was a 22% decrease compared to March, but only a 2% decrease compared to April 2011 median sales prices for that area. May’s median sales price was $275,000, which was a recovery of the previous month’s loss and a 70% increase from May 2011 numbers.

In Wailea/ Makena prices seem to be zigzagging as well. April saw 17 sales – a 70% increase from March. In May, there were only 8 sales – representing a 53% decrease from April and a 33% decrease from May 2011 sales. April sales volume was $25.2 million, which was 90% more than March sales and 26% more than April 2011 sales. May sales volume was $15.9 million – down 37% from April and down 27% from May 2011. The median price in April was $965,000 (19% increase from March) where the median price in May was $1,205,000 (a 25% increase from April.

The Central (Kahului/ Wailuku) area has had a steady decline the past two months. There were 11 sales in April, which is 31% less than the number sold in March. In May, there were 10 sales – a 9% decrease from April and a 17% decrease from May 2011 sales.

Lahaina Town only saw 5 sales in April which is a 64% decrease from March. May brought in 6 sales. Sales volume in April was $3.4 million – a 29% decrease from March. May’s sales volume was $2.6 million – a 22% decrease from April.

Highs and Lows

There were only 2 condos on Maui that sold for less than $100,000 in April. The lowest selling price in April was a 392 square foot, 1/1 bank owned condo at Happy Valley Village in Wailuku, listed for $64,999 and sold for $72,000.  It was in pretty rough shape and the interior was dated (to say the least).  The other condo was a nicely updated, oceanview 1/1 3^rd floor unit at Wavecrest on Molokai, which sold for $95,000.

There were 6 condos on Maui that sold for less than $100,000 in May. Four of those properties were bank owned and 1 was a short sale. The lowest selling price was $33,000 for a 1/1 610 square foot bank owned unit at Harbor Lights in Kahului.

On the higher end of the condo sales prices, there were 12 condos that sold for over $1,000,000 in April. At the top of that list was a $4,500,000 at Wailea Beach Villas in Wailea for a 3/3.5, 2863 square foot ocean view unit.

There were 10 condos that sold for over $1,000,000 in May. At the top of that list was another Wailea Beach Villas in Wailea – a 3/3, 2893 ocean view unit that sold for $5,992,000.

Potts’ Picks

I’m going to keep harping on Kapalua Golf Villas. Last month’s pick was a 1 bedroom 2 bath priced at $419,000.  That unit sold.  This month there is a very similar unit priced at $390,000. It needs updating but it is ripe for picking. MLS # 348155.

For the luxury pick, why don’t we take the short sail over to the Terraces on Manele Bay on Lanai, soon to be renamed Oracle Island J. This is a 3 bedroom, 3.5 bath of 3,208 square feet with fabulous views priced at $2.15 million.  It’s MLS #352301.

For more information on these or any other units send an email with your request to info@aloharealtygroup.com or, visit our website at www.aloharealtygroup.com.

Single family home sales drop off, especially at the higher end.

Both the number and median selling price of homes dropped in May.  The median selling price climbed to $479.5K in April, but then dropped back below $400K for the first time since January. 

Interest rates remain at record lows and prices are flat at best.  That should continue to fuel first time and move up buyers.

The upper end of the market seems to have stalled. We not sure yet if that is a function of inventory or something else.  Wailea sales have been steadily declining and there hasn’t been a sale in Kapalua since February.

Area Highlights

Kula/Ulupalakua/Kanaio was one of only 2 areas to have increases in sales of units, prices and volume in April. Nine homes sold for a total of over $6.4 million. Sales volume was up 17% from March and up 91% from April 2011. The median sales price was $700,000 – up 42% from March and up 23% from April last year. May saw only 3 closings at a median price of $790K, for a 69% decrease in sales volume to almost $2 million.

Haiku saw a 33% increase in April with 8 sales compared to 6 sales in March and double the number of sales when compared to April 2011. May saw a slight decline to 5 sales in the area. This was, however, a 25% increase compared to May 2011. April’s increase led to a sales volume double the previous month’s at $6.5 million. May’s sales volume was $2.8 million – 43% of April’s total and 74% of May 2011’s sales volume. While the median sales price in April saw a 78% increase to $744,250; May’s median sales price for Haiku saw a 43% decline to $425,000.

Kaanapali seemed to be rising through 2011.  But, after having 5 sales in March there were no sales in April. In May, there were 2 sales – the same amount seen in May 2011. May sales volume was only $2.1 million – down 29% from May 2011. The May median sales price ($1,055,000) decreased 29% from May 2011.

Napili/ Kahana/ Honowokai area sold 6 houses in April – twice as many sold in March, but followed with only 2 sales in May. May’s median sales price was $585,000 – down 13% from April and down 70% from May 2011.

There were 17 sales in April in Maui’s Central Area (Kahului/ Wailuku) (compared to March’s 19) for a total of $6.2 million. This is down 14% from March and down 44% compared to March 2011. May saw a jump in sales (25) that represented a 47% increase from April sales. April median sales prices in the Central area fell 6% to $350,000, and decreased 16% from April 2011 median sales prices. May median sales prices slipped to $340,000 – which is 12% lower than May 2011.

The Wailea/Makena area has experienced a steady decline in sales for the past 2 months. In April, there were 2 sales after having 3 in March. As a comparison, there were 3 sales in April 2011. In May, there were 2 sales – consistent with the previous month as well as May 2011. The median sales price in April was $1,542,000 – 29% more than March’s median sales price and 15% more than April 2011. The median sales price in May was $1,009,050 – a 35% decrease from April and a 69% decrease from May 2011.

Highs & Lows

In April, there were 5 homes that sold for $200,000 or less. One was bank owned and one was a short sale. The lowest selling price for a home in Maui County was a 3 bedroom, 1 bathroom home in the Waikapu neighborhood of Wailuku. The home was built in 1929 and, well, the value was clearly in the land. It closed for $100,000. In May, there were 3 homes that sold for $200,000 or less. Only one of those homes was bank owned. The lowest selling price was for a 2 bedroom, 1 bathroom, 458 square foot home on Lanai that closed for $150,000. The home had a great lot and plenty of potential.

The upper end of the market was comparatively slow with only one sale in April and one in May of homes over $2,000,000.  During the same period there were 8 condos that sold for over $2,000,000.

April’s highest priced home sold is a 4 bedroom, 4.5 bathroom, 3739 square foot custom built home in the gated Aliilani neighborhood in Kihei. Boasting ocean views, beautiful backyard with outdoor kitchen and pristine pool, a true chef’s kitchen, media room and plenty of custom built finishes, this home was listed for $2,495,000 and sold for $2,366,666.

May’s home was an exquisite, traditional pole house, high on the hillside in Maui Meadows with views that span from the Kahului airport to past Molokini. The interior and outdoor living areas are equally impressive as the views. This estate was originally listed for $2,849,000 and sold for $2,600,000 cash.

Potts’ Picks

This month’s best buy is a bank owned property in Kihei.  It’s priced at $389,900 and has Fannie Mae financing available.  It features 4 bedrooms and 3 baths.  It is 2,135 square feet.  It appears to be in pretty good condition for a bank owned property. It’s MLS #352696.

Last time we had 2 luxury picks in Lahaina. Both of those have sold. So this month we’ve found a nice looking place in Wailea.  It has 4 bedrooms, 4.5 baths and has 4,508 square feet.  It sits on the golf course and has ocean views. The price has been lowered from $2.75 M to $2.25M.  It’s MLS 347730.

For more information send an email with your request to info@alohapotts.com, or see all of the listings on Maui at www.aloharealtygroup.com.

Be sure to visit us on line at www.AlohaRealtyGroup.com

A hui hou!

Get more information and details

To get more information on property and trends, you can search all properties listed for sale at www.AlohaRealtyGroup.com.  If you can’t find what you’re looking for there, send us an email to 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(B) 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 Aloha Realty Group. 

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.