The Maui Luxury Home and Condo market has just endured a bumpy roller coaster ride over the last couple of years. This segment of our market was among the most resilient during the end of the real estate boom, especially in the Wailea/Makena area. During 2007 and the first quarter of 2008, luxury homes and condos were still fetching premium sales prices and experiencing stronger sales volume. In contrast, all of this was happening while almost all other segments of the market were seeing slumping sales volume with flat to depreciating prices. As 2008 progressed, the high-end market started to change. Sales volume slowed dramatically. By the peak of the financial crisis in the fall of 2008, sales came to a virtual standstill. Sales remained stagnant throughout much of 2009. While there were some very high-end transactions closing, most of the properties that were closing were selling at substantially discounted prices from the peak.
As we are approaching the close of the first quarter of 2010, will we are seeing some recovery in sales volume. The market is showing signs of modest recovery. Data suggests we may not be quite there yet. We have the same number of home closes over $2,000,000 already for this year that were non-existent last year. There are some suggestions that there may be some additional improvements forthcoming. Barron’s just ran an article on improvements in the second home market. Maui was rated number one on a list of 10 communities as the best places to buy second homes in the country. The article addressed increases in activity among a number of high end enclaves. There are reasons for this increase in activity. While 2008 was a year of tremendous wealth destruction among some of the nation’s most affluent, 2009 proved to be a lot more prosperous. More millionaires and multi-millionaires means more potential luxury home buyers.
As an end note, a Makena Beachfront Home listed for $27,000,000 recently went under contract. If this property closes anywhere near its list price, this sale would set a new high end mark for single family luxury homes. I am continually watching Maui’s Luxury home market. Contact me if you have questions or need assistance. Michele Muir White R(S), SFR, Coldwell Banker Island Properties 808.298.8448, michelewhite@hawaii.rr.com
