Winter in Maui is always a blissful time of year. We have an abundance of whales, good surf, and rain to make our plants green and fill our reservoirs.
There were 60 home sales in February with a median sales price of $560,000. Last February, there were 66 home sales with a median price of $537,500. That is roughly a 9% drop in sales activity and a 4% increase in median price.
86 condo sales closed with a median sales price of $345,000. Last February of 2013, there were condo sales totaled 101 units with a median price of $360,000. That is a 15% reduction in volume and roughly a 4% reduction in median sales price.
11 land sales reported last month with a median price of $400,000. Last February, there were 14 land sales with a median price of $502,500. That is a roughly 21% drop in sales volume and a 20% drop in median.
It is worth mentioning that the decrease in median for both land and condos is a reflection of the distribution of sales rather than any decrease in property values. The decrease in condo medians may have something to do with heavy sales activity for entry level condos zoned for owner occupants and long term rentals. This is one segment of the market that has seen some of the strongest appreciation during the market recovery.
Some other compelling numbers worth mentioning are:
The highest priced home sale for the month of February was an oceanfront estate in Spreckelsville that sold for $8.25M. It had 3.42 acres, a luxurious home and beautiful pool area. Coldwell Banker Island Properties represented the buyer in this transaction.
There were 3 other home sales over $2M in February, Wailea, Ka’anapali and Lahaina.
The highest priced condo sale was $3,850,000 for a front row 2 bedroom, 2 bath condo at Wailea Elua. This was a new all time high sales price for Wailea Elua.
There were three other February condo sales over $1.5M. There was another Elua sale, Kai Malu and Ho’olei.
The highest land sale last month was $895k for a 5.45 acre lot in Ka’anapali Coffee Farms.
There were 8 REO or bank owned sales in February. This is down slightly from the 10 bank owned sales last year. It is noteworthy that a couple of the REO sales were higher priced transactions. There was a partially finished home in the Honolua Ridge subdivision of Kapalua that sold for $1.7M. There was also Kapalua Bay Villa that sold for $1,250,000.
There were 8 short sale closings which is down from the 15 that closed in February 2013. Rising prices and the end of short sale tax relief means that we will probably to less short sales on Maui.
Looking at the March numbers, it is very clear that we are seeing a decrease in sales volume. At the end of 2013 also saw less activity than the end of 2012. It is hard to give an exact reason why the market is slowing down. My reasoning is that it is due to our shrinking inventory rising of prices. The lower priced home inventory has been shrinking over the last 6-12 months giving fewer options to buyers. Sellers have been holding out for higher prices well above recent comparable sales and this pay turn off some hesitant buyers.
What does all of the above mean for buyers or sellers interested in entering the Maui real estate market? Market conditions vary pretty widely depending on the community, neighborhood and price range. The abundance or scarcity of inventory in any one area is bound to have a big impact on pricing and rates of appreciation. I welcome the opportunity to discuss our market with you, please contact me today for a free consultation. Michele Muir White R(S), ABR, SFR, Coldwell Banker Island Properties, 808.298.8448, michelewhite@hawaii.rr.com
