Maui Real Estate, Living On Maui

MAUI, HAWAII Real Estate Annual Report-Look back at 2013

Maui Real Estate Annual Report- Look back 2013

Brought to you by Jeannie Kong REALTOR ® (S) 808-276-1832 Jeannie@JeannieKong.com

 We saw INCREASE in all Categories of Maui Real Estate

2013 is now just a memory.  What can we glean looking back …to help predict what is to come for 2014. How did we do?  The official Maui Real Estate statistics are out by Realtors Association of Maui, Inc. I will first give you the raw data and then later in the post I will give my summary and interpretation of the data and then also give you my personal experience on the pulse of the market.

BUT  first things first. 2014 came roaring in with EPIC Maui North Shore Swells!!!!! Last week, our little north shore country town of Peahi, Maui was the center of action. THE worlds top surfers, film crews, helicopters, jet skis, and lucky bystanders were all out at Jaws in Peahi to witness nature’s awesome power. Some waves coming in with 30-40 ft. faces, only the top of the top of worlds surfers can brave these death defying waves. Laird Hamilton was out showing how its done. The famous yellow helicopter was out filming the  movie, Point Break 2 and capturing world class big wave surfers riding the monsters. These surfers not only have to have amazing talent, but also guts of raw steel and be in unbelievable physical shape to take on waves of this magnitude. We see these size waves maybe once every decade or more. Here are some gorgeous, jaw dropping footages from last week brought to you by  magic seeweed . Enjoy, take a break and watch this! http://magicseaweed.com/news/laird-back-towing-jaws-for-point-beak-2/6009/
If that isn’t enough, we had snow on our beloved peak of Haleakala too! So you can look up and find a dusting of snow and look north to find epic swells, all with the spirit of aloha. I find myself truly fortunate to call Maui my home. Ok back to Maui Real Estate data!

To Search for All Maui Real Estate Listings go to : www.LivingOnMaui.com

Maui Real Estate Statistics-Year to date (Jan 2013-Dec 2013)

Residential single family:

Unit sold increased (981 homes sold/+ 43 units/+4% change YTD)

  • 981 units (REO=68 units/Short sales= 121) 19% of homes sold REO/ SS
  • Sold Price 400K and under=256 units
  • Sold Price over 400K-500K=199 units
  • Sold Price over 500K-750K=260 units
  • Sold Price over 750K-1 M=110units
  • Sold Price over 1 M-1.5 M=76 units
  • Sold Price over 1.5 M-2 M=36 units
  • Sold Price over 2 M-3 M= 18 units
  • Sold price over 3 M-5 M=16 units
  • Sold Price over 5 M-7M= 5 units
  • Sold Price over 7 M and up=5  units
  • Lowest Price Sold= $80,000 (Wailuku Residence)
  • Highest Price Sold =$11,900,000 (Home in South Maui, Keawekapu Beach. Most likely this home will be razed and new home built)
  • South Maui outperformed West Maui in the over 6 million dollar category.

Average sold price increased ($782,764/ +11% 2013 compared to 2012)

Median price increased ($530,000/+13% 2013 compared to 2012)

Total volume sold ( $767,108,838/+16% 2013 compared to 2012)

Residential Condos:

Unit sold increased slightly (1338 units sold/+84units/+6% YTD)

  • 1338 units (REO=36 units/Short sales= 96 units) 9.7% of condos sold  REO/SS
  • Sold Price 400K and under=751 units
  • Sold Price over 400K- 500K= 141 units
  • Sold Price over 500K-750K=203 units
  • Sold Price over 750K-1 M=77 units
  • Sold Price over 1 M-1.5 M=92 units
  • Sold Price over 1.5 M-2 M=29 units
  • Sold Price over 2 M-3 M= 24 units
  • Sold price over 3 M-5 M=18 units
  • Sold Price over 5 M-7M= 1 units
  • Sold Price over 7 M and up=2 units
  • Lowest Price Sold= $22,000 (leasehold property-West Maui Trades)
  • Lowest Price Sold = $30,000 (fee simple property-Harbor Lights)
  • Highest Price Sold =$11,395,000 (Andaz Residences)

Average sold price increased ($592,351/+21% 2 013 compared to 2012) (Does not include leasehold prices)
Median Price increased ($379,950/+6% 2013 compared to 2012) (Does not include leasehold prices)

Total volume sold ($763,749,383/+30% 2013 compared to 2012) (includes fee simple and leasehold)

Land:

Land lots sales increased (220 LOTS/+17 units/+21% YTD)

  • 220 lots sold (REO=7 units/Short sales=0 units) 7% of land sold REO/SS
  • Lowest Price sold =$45,500 (Molokai)
  • Highest Price Sold=$15,600.000 (1841 acres Upcountry Maui)

Average sold price=$729,871 (+29% 2013 compared to 2012)

Median Price= $399,500 (+14% 2013 compared to 2012)

Total Volume sold: $160,571,747 (+62% 2013 compared to 2012)

*Land lots sales are a very small sampling that statistics in the property class are not necessarily reliable indicators

Current Absorption Rates  (This is Active listings divided by December sales- indicates on how many weeks of inventory is left in each property class) As of Jan. 10, 2014

Residential SF=7.2 months

Condos=6.3 months

Land=16.7 months

This however does not tell the full story. Break it down under price category, a different picture emerges.

Residential SF listings and Absorption Rates (current active listings as of Jan 25. 2014 divided by 2013 sales)

  • under 500K = 1.5 months supply of inventory left
  • Over 500K-750K=6 months supply
  • Over 750K- 1 M=  8.5 months supply
  • Over 1 M-1.5 M= 13.42 months supply
  • Over 1.5 M-2 M=20 months supply
  • Over 2 M-3M= 38  months supply
  • Over 3M=44 months supply

Condo Listings (fee simple only) and Absorption Rates (current active listings as of Jan. 25, 2014 divided by 2013 sales)

  • under 500K  = 3.5 months supply
  • Over 500K-750K=8.8 months supply
  • Over 750K- 1 M= 11.5 Months supply
  • Over 1 M-1.5 M=24 months supply
  • Over 1.5 M-2 M= 12 months supply
  • Over 2 M-3 M =16 months supply
  • Over 3M= 21 months supply

* It is basically accepted by industry professionals that 6 months supply of inventory is a “Normal market”. Under 6 Months is a “Sellers market” and over 6 months is a “Buyers market”
Note: Properties with great views and in good condition or remodeled and priced at market for its category class have typically sold at a much quicker rate and beat the averages! Land Listingsand Absorption Rates

The sampling is so small that I will not be breaking this down.

  • Overall there are 18 months of supply.

Interesting thing to note- There are some great opportunities in a category that I call “hydrid vacant land/residential”. What this means is that there are parcels of land where a small home or “agricultural building” has been built, however, the zoning allows for a main house and possibly allow more structures. These are potentially lucrative properties as you would end up with an estate or you may even possibly be able to subdivide or CPR the property and sell if off. Call me for this information so I can go over it in more detail.

 

Now to end this report and putting it all into perspective, lets look back historically and see what is going on in Maui Real Estate.

So what does this all mean? We saw INCREASE in all areas. As stock markets rose in 2013 and consumer confidence found more consistency,  buyers who were on the fence took action.  Just like year before, 2013 saw properties in Under 500K category bought up fast. As inventory became more scarce, buyers had to get geared for a bidding war and anybody who hesitated lost out. Most of those properties needed to be updated as well.
Many of my buyers added real estate to their investment portfolios. I know of many buyers who  cash flow quite well on their vacation rental properties. Acquisition  prices still reasonable, interest rates still historically low, but daily rental rates rising, only supports the analysis that Maui real estate could be ripe for investing. Of course many buyers not only buy here on Maui for investment purposes,  but also to enjoy the property themselves. So it appeals to your financial decisions AND your quality of life decisions as well. Quality of life is priceless. Maui confirms your need to take in more more nature and enjoys the fruits of your labor.  Her beauty inspires you to do so.
 
LUXURY Maui Real Estate
The category where inventory and choices to be had were the luxury category. Here again as it was in 2012, buyers had choices to consider. However, we did see increased interests and upward shift/trend in this market.  The stock market fared well which follows along and right to the luxury second home category. More increased traffic from international buyers too. Although there is still quite a bit of inventory, we have seen a marked increase in activity in 2013 compared 2012. Consider the volume increased over 80%!!! See below.
Luxury Single Family Residential ( 2 Million and over category) 2012=41 Units Sold,  2013=45 Units Sold   +9.75%  Increase 2012= $166,165,296 Total Vol. Sold,  2013= $188,517,406 Total Vol. Sold  +13.45% Increase 2012= 3,000,000 Median Price Sold,  2013 $3,250,000 Median price sold   +8.3% Increase 2012= $4,052,812 Avg. Price Sold,  2013= $4,189,275 Avg. Price Sold  +3.4% Increase
Luxury Condominiums Residential (2 Million and over category) 2012=31 units Sold,  2013=48 units Sold  +54.8% Increase 2012= $87,912,000 Total Vol. Sold,  2013=160,453,705 Total Vol. Sold  +82.5% Increase 2012= $2,500,000 Median Price Sold,  2013= $2,722,500 Median Price Sold  +8.9% Increase 2012= $2,835,870 Avg. Price Sold,  2013=$3,342,785 Avg. Price Sold  +17.9% Increase

Looking forward, the lower inventory of properties of 750K and less will be the driving factor. Decreased inventory will have an impact on sales and most likely drive up prices even further in 2014. Having said this, I have seen buyers resistance to properties priced too high for its category and class. Thus the ensuing price reductions I am beginning to see on some properties. The upward climb does not translate to automatic continuous appreciation as we saw in our last cycle. Buyers are still cautious and very savvy. My prediction is that that the pace of appreciation will be steadier and slower. The faster appreciation happening in the lower end of the market for properties in good condition.  The new “qualified mortgages” that have been put into place  and will put “at risk” buyers out of the market and as interest rates increase it may very well tamper the activity. If you would like to read more on “qualified mortgages”  or QM, here is a good article http://www.usatoday.com/story/money/business/2014/01/09/qualified-mortgage-borrowers-consumer-protection/4361281/
The increase in prices, however will turn “owners” into sellers, as sellers take opportunity to finally capture equity and sell. We have seen a slow but a definite increase in inventory. Lets look back for the last 11 years!

For a full report, please feel free to email me and I will email the over 17 page report.
Keep in mind, Maui is an island!  Limited land, limited developments. Increased International attention and demand. One only knows the bottom once it has passed and it has passed!!  There is still some great opportunities here on Maui, however.  If Maui is on your mind, then this may be just the time to make the move. Only YOU know if it is right time for you and your personal circumstances. If it is, then give me a call/email. It would be an honor for me if I can be of service.
 
For Buyers: If you want to be updated on new development, new listings information or a more detailed analysis in any one area or complex, please feel free to call/email me. Real Estate is very local and Maui is no exception. So in order to make a good investment,  you need to know the facts and have someone advocate for you!
For Sellers: I have a very detailed report for you that is tailored to your needs. I keep a very keen eye on trends from buyers and where they come from so I can customize my marketing efforts. My marketing action plan is top notch. I have used my years of experience in marketing and branding and USE it to give my clients the best plan put into action! I have sold top price for my listings and broken the ground (thus set the tipping point) in many neighborhoods ! Why- because my approach is ACTIVE and I am committed to reach our shared goal!   Please feel free to call/email to discuss.
 
As always, no obligation, free consultation available. Information you can use to help you make the right decision for you!
Thank you and make 2014 a great year!
Sincerely, Jeannie Kong REALTOR ® (S)
808-276-1832 Email: Jeannie@JeannieKong.com

Please consider these wonderful and distinctive properties for your real estate portfolio:
www.WaileaPointCondo2303.com  Best Priced unit for location and Ocean views!!  Exclusive and highly prestigious Wailea Point  located right on Oceanfront Wailea. Next to Four Seasons Resort and Spa. Between 2 incredible beaches!

www.Manawai.info  Near Ocean Views 5 Acres on famed North Shore of Maui. This is a rare opportunity. Luxury Cottage, Pool Cabana,  Oversized 3 car detached garage, water well and on an on! Truly unique and beautiful.  
http://kiheikai19.isnowforsale.com/  Beachfront Condo complex . One bedroom/One bath at an incredible price. Turn key and ready to go! Right on Sugar Beach.
www.MauiBeachFrontCondo902.com  Ocean View condo on West side os Maui. Ninth floor offers great views.

 All Information and Stats are deemed reliable but not guaranteed. Informational stats provided by Realtors Association of Maui.

 

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