Aloha!
In the 4th quarter inventory levels dropped again. There were a total of 22 listings during the quarter compared to 29 in Q3, and the quarter ended with only 8 active listings compared to 11 at the end of Q3. There were 5 closed sales in Q4 compared to 6 in Q3, and the quarter ended with 9 properties in escrow compared to 2 at the end of Q3.
Of the 8 active listings at year end, 4 were fee simple and 4 were leasehold. At the current sales pace, with 5 sold in 3 months, we have less than 5 months of inventory, but if you do the calculation for fee simple units only, we have only 2.4 months of inventory. This clearly appears to be a sellers’ market for fee simple units!
All of the 5 sales in Q4 were fee simple, including 3 ocean view studios, 1 garden view one bedroom, and 1 ocean view two bedroom. There isn’t a clear trend on pricing from quarter to quarter, but there is no indication that it is going down anytime soon.
Of the sales in Q4, 3 were cash and 2 had conventional financing. For the entire year 2017, there were 24 closings, of which only 4 had conventional financing (16.7%), 3 were 1031 exchanges, and the remaining 17 were cash sales.
Comparing 2017 to 2016, active listings went from 25 at the end of 2016 to 8 at the end of 2017. There were 24 sales in 2017, compared to 27 in 2016 and 20 in 2015. Clearly the market shifted in a big way from a buyer’s market with 25 months of inventory on hand at the end of 2016 to a seller’s market with less than 5 months at the end of 2017. Of the 24 sales in 2017 only 3 were leasehold units.
Overall Maui condo sales in 2017 were up 10.8%. Average sold prices for Maui condos were up 10.4%, while median sales prices were up 7.24%. Kaanapali Shores sales were down a bit for the year, probably due to inventory constraints. Average and median prices in 2017 compared to 2016 for Kaanapali Shores didn’t change significantly. Average prices went from $589,148 in 2016 down to $578,797 in 2017. Looking at the prices from Q4 2016 to Q4 2017 it’s difficult to conclude on a definite price trend.
It seems that the resort is stable and owners are mostly happy and not anxious to sell at this time. Visitor arrivals are still strong and airlines seem to be adding seats, so we feel optimistic that the market will keep chugging along.
Total number of units listed for sale at Kaanapali Shores during Q4 2017: |
22 |
Total number of units sold at Kaanapali Shores during Q4 2017: |
5 |
Total number of units ACTIVE for sale at the end of Q4 2017: |
8 |
Number of studios for sale: |
1 |
Number of 1 bedrooms for sale: |
1 |
Number of 2 bedrooms for sale (including specials): |
6 |
During Q4 2017, there were 5 sales (none of which was a distressed property). There were 9 properties in escrow at the end of the quarter. There were no listings that expired and none that were cancelled without being re-listed. There was 1 bank owned, leasehold studio listed, and it is currently in escrow.
Feel free to contact me if you have any questions at (808) 276-8776 or lee@alohapotts.com.
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