The end of 2009 was about as good for Maui real estate as the beginning of the year. The number of units sold was down overall, although there was a slight improvement in the number of condominiums sold. Still, house sales have taken a major hit and condo prices have fallen considerably. While single-family house prices have not fallen as much, they’re still down almost 15 per cent.
Nevertheless, available inventory appears to be declining suggesting that there are some reasons to be cautiously optimistic about a real estate recovery in Maui. At the moment, there are still more than enough properties to satisfy the market for the next year or 18 months and since said inventory continues to include a wide variety of short sales and bank-owned properties the picture is not entirely rosy.
In other words, now is not the time for sellers to test the waters. The market is fairly saturated with highly motivated sellers so unless you need to sell your home you should wait for further market improvement. Dozens of new foreclosures every week help to maintain this buyers’ market.
Current selling prices tell the story fairly accurately. The average price for a single-family home in Maui is down to $713,946 in 2009 compared to $830,578 in 2008, more than a $100,000 difference. Moreover, prices in 2007 were higher still averaging $920,807 making the total drop in average price more than $200,000 in just 2 years.
Similarly, condo prices have also suffered. In 2009, the average condo sold for $719,993 compared to $920,468 in 2008. Condo prices have fluctuated much more than single-family home prices as 2008 prices were considerably higher than those the year before. In 2007, the average condo price was around $817,000 but we can still see a drop of about $100,000 for condos.
Even median prices have shown a decline. Typically, median prices are consulted in order to exclude rare sales and inexplicably expensive houses. Regardless, the median price for single-family homes in Maui has dropped more than $160,000 since 2007. The median prices for these properties were $630,069; $577,774; and $498,106 for 2007, 2008, and 2009 respectively.
And the statistics for condos are not really any better. Since 2007, condo prices have fallen $100,000 from their 2007 and 2008 medians of $550,000 to the 2009 median of $450,000.
However, even though these are disconcerting figures, it’s important to understand that the Maui real estate market is doing considerably better than the national picture. According to experts, the average single-family home sold for $172,600 in November 2009.
Posted in Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
Who is buying Maui Real Estate?
In order to answer this question, we should first look at what has been selling. Last year, there were a total of 1687 properties sold that were as reported through our MLS.
This includes Homes, Condos, Commercial, Business, Timeshares, and Land. The sales broke down as follows:
Timeshares = 40
Homes = 694
Condos = 824
Vacant Land = 109
Commercial = 19
Business = 1
Let’s take a closer look at the two major categories, i.e. homes and condos.
The average sales price of condos was $719,000 with a median price of $450,000. 71 sales were REO’s and 59 were Short Sales. The 3 highest sales were at The Residences of Kapalua with the highest one being $5 Million. 70% of all the sales were over $300K, and of these approximately 90% were bought as part time vacation condos.
The average sales price of homes was $715,000 with a median price of $499,000. 116 sales were REO’s and 46 were Short Sales. The highest sale was $11.25 Million for a beachfront home on Keawakapu Beach in South Kihei. 93 sales were at or above $1 Million.
Probably no surprise to anyone, but our market continues to be dominated by off-Island Buyers. In future issues, we will provide a more detailed profile of who these Buyers are.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. Shortly, you will be able to search sales going back 12 months for any search criteria you might enter.
Posted in Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
As previously announced, Maui Land & Pineapple (MLP) has pulled out of the pineapple business completely at the end of 2009. The culmination of MLP restructuring has cost 285 pineapple cultivation workers their jobs after a year of turmoil for a company desperately trying to remain in business.
Early in 2009, MLP started selling assets like their Plantation Golf Course, which drew $50 million, to try to pay off growing debts. Then in February, MLP announced it would be laying-off around 100 employees at the Kapalua Resort and at the Kahului headquarters. Moreover, employees who managed to keep their job were required to swallow a 10 per cent pay cut. Unfortunately, the company’s woes did not end there and in May then President and Chief Executive Officer Robert Webber resigned after a short 6 months in the position and board Chairman Warren Haruki stepped up as the interim CEO.
Still, the company continued its dive into the red and reportedly had lost nearly $93 million by October; even more than the $71.6 million they had lost in 2008. For the most part, losses were blamed on a struggling Maui real estate market which saw the value of MLP real estate investments nose-dive. Moreover, all the company’s investment in Kapulua Bay Holdings was also lost as well.
Nevertheless, when the news dropped last November that MLP would end pineapple operations, employees and community members alike were somewhat shocked. For the most part, people had hope that a resolution would be found and that operations would continue. Sadly, this was not to be and pineapple operations officially ended in December 2009.
Perhaps what’s even more surprising is a report by auditors that reflected serious doubts that MLP would be able to stay in business at all. A report filed by the company with the Securities and Exchange Commission outlines the problems faced by the struggling company; yet, MLP officials are holding on for an improved economy and are hoping to reverse their financial woes through a secondary equity proposal to current stakeholders.
Some good news has come from this story, however. At the end of 2009, the recently formed Haliimaile Pineapple Co. announced plans to take over MLP pineapple farming operations saving 65 or more jobs.
Posted in Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
- Jan
- 14
The Tide is Turning
The tide is turning. You know the market is shifting in to a higher gear when you receive 10 offers on one listing and 5 offers on another one within days of listing the property.
This was the case with two of our bank owned properties that we listed last week. Unfortunately, the bank jumped the gun on one of the Listings and we had to cancel it, due to the fact that the sale had not yet been confirmed by the courts.
If you think it is only REO properties that are garnering attention, think again. Our new luxury property listing at 120 Manalo Street (see Featured Property above) is also attracting considerable attention.
Our real estate market on Maui is cyclical. Remember 1980 to 1985, we were in a downward trend as a result of high interest rates.
1985 to 1991, we had a booming market with Japanese investors pushing values to unprecedented heights.
1997 to 2006, we experienced our last big boom in real estate prices which was partially due to the availability of money and easy financing qualifications.
If we could project ourselves ahead to 2015, and look backwards, we believe that the period between now, and then will mark the next big wave in our periodic cycles.
Do you want to take advantage of this next upswing in the Maui Real Estate market? Whether you want to buy a luxury multi-million dollar estate, or your first affordable home or condo, we are ready to help you.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. One of the key factors in any sustainable recovery in our Maui real estate market will be how tourism is faring. It is the driving force of our economy. We are happy to report that occupancies are way up again for the first quarter of 2010.
Posted in Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
2009 is almost in the history books. It certainly has been a challenging year for many people, and especially those in real estate.
Fortunately, we were able to buck the trend again, and had another outstanding year with closed sales over $19 Million.
Although we are understandably proud of our accomplishments this year; we take even greater satisfaction in knowing that we helped many folks get some terrific deals as well as helping others sell their properties in challenging times.
We are looking forward to an even better year in 2010. If you are thinking of buying or selling, please let us know how we can best assist you in that process.
We want to wish everyone a very Happy, Healthy, and Prosperous New Year.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. At times we hear about owners who are extremely motivated even though the price may not seem to reflect it. Such is the case with two oceanfront homes at Maluhia #5 and Makena Place #1. Don’t be shy about making an offer on either of these properties.
Gregory P. Smith R (B), Melissa Smith R (B), Ken Smith R (S), Jeremy Smith R (S)
Posted in Blog, Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
- Jan
- 05
Looking Forward to 2010
It is the start of a New Year and a new decade. Although we know there are many naysayers out there predicting doom and gloom; we are certainly are not in that camp at all.
On the contrary, we are extremely bullish on the future. In fact, we are going on record that 2010 will be a turning point for Maui Real Estate. With each succeeding month showing increases in sales and shrinking inventories, we feel that 2010 will see the bottoming out of real estate prices on the Valley Isle.
In fact, if you have been following our weekly Market Watch, you will notice that this past week showed a record drop in inventories coupled with nice increase in sales in all categories
Where do you want to be 5 years from now? If you want to be owning property here on Maui, then this year would be an ideal time to act.
Call or e-mail us today to ensure that you are part of the next bull market cycle in Maui real estate.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. Ken recently announced that 2010 would be his last year as a full time member of The Smith Team. He will still be available for consulting on a very part time basis, but mostly, he will be pursuing his other passions, such as traveling, long distance running, playing with his grandchildren, and Tournament Scrabble®.
Posted in Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
Looking at overall market statistics for either the U.S. as a whole or for individual states, it is becoming increasingly evident that the market has found its bottom, and is in the very early stages of recovery.
Take a look at the Federal Housing Finance Agency website where they compare Hawaii, California, and Washington prices on a quarter by quarter basis with previous year’s figures. You can see that prices showed a dramatic improvement in the latest quarter.
In fact, California, which was hit the hardest actually bottomed out in the 3rd quarter of 2008, whereas Hawaii, reached bottom in the 2nd quarter of 2009. This is the normal pattern where Hawaii lags about 6 months behind California.
An additional impetus to price stabilization and improvement has been the extremely low interest rates. One of the reasons why interest rates have been so low is due to the Feds purchase of Mortgage Backed Securities. This program is ending in March 2010, so we expect that interest rates will most likely climb to the 6 to 7% range.
We want to wish you all a very Merry Christmas and a Happy Chanukah.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. Are you looking for development opportunities? We have projects where we are looking for investors in the $3 to 100 Million range. Contact us if you are interested in learning more about some of the incredible opportunities available on Maui today. Five years from now, you’ll be very happy if you act now. This goes for any purchases that are made today. We are in the very early stages of a bull market for Maui real estate.
Posted in Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
While many Maui businesses are still in the midst of economic upheaval, there are some signs that recovery is on the horizon. Slowly but surely, markets have been improving and the Maui real estate market has seen some promising growth in the past month.
One of the most hopeful signs is the fact that condo sales and home sales throughout Maui have seen a moderate boost in November. In fact, compared to last year, there have been 2 more sales of single-family homes this year. While 67 sales, compared to 65 sales in November of 2008, is not at the level of peak sales, it’s still good to see some improvement. Moreover, median prices were only down 1 percent this month which is a bit better than experts had predicted.
However, when you talk about condo sales, here’s where the figures really start to point to recovery. In November 2008, a mere 29 condo sales were recorded while this November saw that figure jump to 69 condos sold. While prices had not changed much, the median price for a condo this November has improved by about $1000 from a year ago to $400,000.
More surprisingly, airlines are starting to increase the number of direct flights to Maui. Continental Airlines, for example, is improving their direct service from Southern California to Maui. At the moment, they’re offering daily service to Maui from Los Angeles and have just announced a plan to add four direct flights from Orange County. Similarly, Alaska Airlines is offering new flights to Maui. Clearly, these efforts to enhance service to Maui indicate that tourism is likely to pick up on the island again.
Cynics of course would argue that Maui has a long way to go before the economy is completely recovered, and this is very much true. But for the first time in the better part of a year there is reason to be optimistic about the economic future of the island and with the holiday season upon us we should be counting our blessings.
Posted in Maui Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
Unusually, West Maui Land Co. has been looking to offload a number of large lots through auction. This undeveloped land was available to bidders who were looking for land adjacent to the West Maui forest reserve. As property sales throughout Hawaii have been dwindling recently, the West Maui Land Co. had decided to take a somewhat novel approach in an attempt to finalize the sale of at least 5 lots before the end of the year. Five lots, with one in escrow, have already been sold this year and at bargain prices as well.
Last year, the West Maui Land Co. had hoped to get upwards of $1.6 million for these lots but sales have fallen in the $695,000 to $900,000 range representing a considerable savings for interested investors. Despite difficulties comparing year-to-year sales of Maui land, because of variations in sales with regards to numbers and character, it should still be mentioned that there has been a steep decline in interest in Maui real estate since 2006. In fact, since then sales figures have steadily declined from $266 million in 2006 to $190 million in 2007, down to a meager $94 million last year. While sales have improved slightly in 2009, we’re at $106 million through 10 months; the real estate market is considerably weaker since financial markets began to weaken.
Auctions for Maui Land Co. were limited to individuals with cash or instant credit as the opening bids started at $500,000 and sales were to be finalized before December 21st. The auctions had been advertised exclusively in Hawaii, most prominently in local newspapers, and generated a fair amount of interest. Maui Land avoided offshore interest for a couple of reasons. Namely, there were some time restrictions with regards to advertising in internationally circulated publications and the fact that buyers were required to attend with a broker.
Interested parties were involved in the auction of lots ranging from 25 to 50 acres that all exceeded 700 feet in elevation. While the lots are fairly steep, the forest reserve line is about 1,400 feet, some of them are as deep as 2,000 feet. Moreover, roads and utilities were already set up.
Posted in Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
- Dec
- 13
Help for Maui Short Sellers
Have a wonderful week. On November 30, 2009, U.S. Department of the Treasury announced the Home Affordable Foreclosure Alternatives Program (HAFA), which provides financial alternatives to servicers, borrowers, and investors for a closed short sale or a deed-in-lieu of foreclosure (DIL). HAFA encourages foreclosure alternatives to costly and expensive foreclosures.
The HAFA program simplifies and encourages short sale and DIL options by: Offering eligible borrowers viable alternatives to avoid foreclosures.
Providing a standardized process and time frames for handling viable alternatives.
Allowing pre-approved short sale terms before a property is listed.
Preventing servicers from attempting to reduce real estate commissions established in the Listing Agreement as a condition for short sale approval.
Releasing borrowers from future liability for the debt; Providing financial incentives to borrowers, servicers, and investors.
For more information about HAFA, read the Supplemental Directive using the link above or find this and other Making Home Affordable information at HMPadmin.com.
If you are in a situation or know someone that is upside down on their loan, and needs to sell, this is welcome news. We have a lot of experience dealing with Short Sales, so please allow us to help you or your friends.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. The big news on Maui last week was the monster surf going off on the North Shore. Read more about the 50 foot plus waves hitting today at Jaws.
Posted in Maui Real Estate, Hawaii Real Estate | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
