Today’s questions have been answered by Courtney Brown, Vice President at Island Sotheby’s International Realty.
Q: How are Maui’s Resort Markets faring this year?
(Data Comparison Timeframe: Jan. 1 – July 31, 2017 vs. Jan. 1 – July 31, 2016)
A: Comparing the YTD sales in the resort markets with the same period in 2016, we are seeing more condo sales in Kapalua and Wailea–Mākena, while in Kā‘anapali, condo sales are down. Inventory is increasing in the condo markets, with the exception of Wailea, which has an absorption rate of just 9.2 months.
Part of the substantial growth in the volume of sales in the Kapalua condominium market can be attributed to sales at the Montage Residences Kapalua Bay with three sales ranging from $3.795-6.475M (the highest condominium sale on record for 2017 on Maui) and Coconut Grove with three sales ranging from $4-5M. As there are only 24 oceanfront condominium residences at Coconut Grove Kapalua, it’s rare to have so many sell in one year. There was only one sale last year at $5.25M (not recorded in MLS or included in data below).
In the residential market, the Wailea and Mākena home market is showing tremendous growth over the other markets in terms of sales volume and number of sales. However, it should be noted that Kapalua and Kā‘anapali have very few oceanfront residential communities, in Kā‘anapali, there are just six beachfront home sites in the Kai Ala Place neighborhood. Similarly, in Kapalua, there are just five beachfront home sites at Kapalua Place and three private oceanfront peninsulas that are a part of the resort.
In Kā‘anapali, the high residential sale this year was $4.7M in Lanikeha, and in Kapalua, it was $3.55M in Pineapple Hill. Contrast that to Wailea/Mākena, where there were eight sales above $4.7M in Wailea, ranging from $4.75M to $15.5M, with half of those being ocean or beachfront homes in Wailea and Mākena. It is noteworthy that in 2016, none of the residential sales in this same period were oceanfront.
Kā‘anapali, Kapalua, and Wailea Resort Real Estate Overview:
SALES VOLUME, DAYS ON MARKET AND ABSORPTION RATE (AMOUNT OF AVAILABLE INVENTORY IN MONTHS)
A Look at the Resort Residential Market
Kā‘anapali, Kapalua, and Wailea Resort Home Sales: Average Sales Price
Kā‘anapali, Kapalua, and Wailea Resort Home Sales: Average SP/Sq. Ft.
A Look at the Resort Condo Market
Kā‘anapali, Kapalua, and Wailea Resort Condo Sales: Average Sales Price
Kā‘anapali, Kapalua, and Wailea Resort Condo Sales: Average Sales Price/Sq. Ft.
SALES PRICE TRENDS OVER THE LAST FIVE YEARS: RESORT HOMES AND CONDOS
With such a small data sample resulting in limited data points, sales of luxury homes and condominiums can increase the averages dramatically in resort areas and should be noted. However, in the last five years, we’ve seen the resort real estate market ebb and flow, with average sales prices dropping in 2013 and 2016, and rebounding in 2015 and 2017.
Q: What does this mean if you’re buying a house or condominium in one of Maui’s Resort Communities?
A: As real estate offerings in resort markets tend to attract buyers of second homes, there is often quite a bit of inventory to choose from. However, that said, properties in excellent condition (new or remodeled) and with great views and/or locations can move much more quickly than those that are dated, in need of repair, or don’t have a view.
The condominium market can be very appealing to a second home-owner as many allow short term rentals (defined by Maui County as any rentals under 180 days). Homes require going through a permitting process, which is not guaranteed. Read more about short term rentals of homes and condominiums.
Q: What does this mean if you’re selling a house in or condominium in one of Maui’s Resort Communities?
A: Sellers need to prepare for longer days on market than many mainland US markets. As most buyers will be looking at it as a part time residence and many don’t live on island, we find sales will vary with airline travel, season and other global economic factors.
As you can see from the chart at the top of the page, the resort home sector moves more slowly than that island-wide, with the lowest average absorption rate in months being for Maui homes in general.
*All information deemed reliable but not guaranteed, and should not be relied upon without independent verification. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any misprints, typographical errors, or misinformation and shall be held totally harmless. Listing(s) information is provided by the REALTORS Association of Maui Inc (C) and is for consumers personal, non-commercial use. Information on this site was last updated (insert publication date). This is not intended as legal or tax advice, and readers are urged to consult with the appropriate professionals to determine the accuracy of information.
The original article was posted by Courtney Brown on Wednesday, Aug. 9, 2017.
