March 2012 Sales Statistics

Condo sales take off

Single family homes stay steady

Condo sales compared to single family homes is a tale of 2 markets. The condo market has been erratic and volatile.  In April of 2009 there were 42 condos sold on the whole island.  A year later, spurred by Honua Kai closings, the sales volume shot up to 162.  In March 2011 there were 125 condo sales. From there the number declined steadily for 7 straight months down to 77 sales.  Last month sales skyrocketed to 128 sales, the highest since the Honua Kai induced spike in 2010.  With the exception of that spike, last month saw the highest number of condo sales in any month in the last 5 years. 

Home sales aren’t nearly as exciting.  From November of 2009 through early 2011 it was a scary ride.  It was a sales rollercoaster rising and falling without reason as unpredictable as a teenager on… well, just a teenager.

Since early in 2011 housing sales have remained pretty steady.  There has been fluctuation in the median selling price from month to month, but all-in-all, even that seems pretty steady.

Is life getting back to normal?  

Condo sales take a ride, most single month sales in 5 years

Is it pent up demand, and can it last?

There were 128 condos sold on Maui in March –51 more than were sold in February!  That is a 62% increase over last month and a 2.4% increase over last year.  This was no surprise  at all despite the fact that condo sales had been dragging since last April.

The reason we aren’t surprised is just the daily interaction with buyers and other Realtors.  The activity has been palpable and it was bound to translate into hard numbers sooner or later.

It feels like buyers are making quicker decisions.  Realtors are struggling to find that good deal on the right property for their clients and complaining about the “lack of quality inventory”.  And, yes, we are seeing prices increase at certain developments.

Maybe prices are headed up throughout the condo market. This month’s overall median condo price jumped 29% over last month from $287,000 to $370,000, and up 28% compared to the same month a year ago. 

So, is this a temporary spike in the number of sales and the price?  Let’s see how the next few months work out as we head into our “slow” season.    

Distressed properties still make up a significant part of the inventory and sales. They (short sales and foreclosures) represented 23% of the condos sold in March and 16% of the condos listed on the MLS.  About 2/3 of those sales were in complexes where the condos are occupied by full time residents; either owner occupants or long terms renters.

Area Highlights

First, the peaks and valleys.  There were quite a few peaks in March – as most areas saw a significant increase in sales. Maui’s west side is finally showing signs of life.

Sales in Lahaina Town were stellar in March. The number of sales (14) was 7 times February’s numbers. More than half of those were at Hoonanea, the new residential development.

Lahaina’s sales volume was $4.8 million in March – 19 times February’s sales volume. The median sales price was $355,838 – triple February’s median sales price and a 37% increase from March 2011’s median sales price.

Kaanapali saw more than double the sales this March compared to February. There were 19 sales in March compared to 9 in February. This is also up 58% from March 2011. March sales volume for the area was almost triple February’s sales volume and up 31% from March 2011.  Median sales prices did see an increase to $569,000 compared to last month’s median sales price of $469,900. Still, this number is down 22% from March 2011. 

The Kapalua area doubled its sales in March, and was up 4 times the sales from March 2011. The median sales price in Kapalua ($890,000) saw a 36% increase compared to last month and a 76% increase from March 2011’s median sales price in that area.

Napili/Kahana/Honokowai saw a slight increase in March with 25 sales – 6 more than the number produced in February. Sales dollar volume was up 46% from last month, bringing in over $8.7 million in sales for March. This was also an 11% increase from March 2011’s sales volume for this area. The median sales price is down a bit (9.4%) to $265,000 from February, and down 3% from March last year.

The Kihei area had 36 sales in March, which is 1 more than the number sold in January, but 27% less than March 2011 for that area. The median sales price in Kihei ($289,950)  saw a 23% increase  compared to last month and about 11% increase from March 2011’s median sales price in that area.

In Wailea/ Makena prices seem to be on the rise again. The median price in March was $808,000 where the median price in February was $660,000. Sales volume tripled in March at $13.3 million. The number of sales doubled in March compared to February and were up a little over 10% from March 2011. Again, where else can a price drop by almost a million dollars in a year and still be over ½ a mil?

The Central (Kahului/ Wailuku) area had 16 sales in March, which is 4 times the number sold in February, and over 33% more than March 2011 for that area. Sales dollar volume came in at almost $3.6 million – almost 7 times the volume seen in February. The median sales price in the Central Area saw a 44% increase compared to last month but a 40% decrease from March 2011’s median sales price in that area.

Highs and Lows

The lowest selling price last month was a 3^rd floor 2/1 bank owned, leasehold condo at West Maui Trades in Honokowai, listed for $20,500 and sold for $19,000.  It was in pretty rough shape and the interior was dated (to say the least). 

There were a total of 5 condos on Maui that sold for less than $100,000. Some were recently updated or remodeled, and a couple had some nice views.  Four of those units were REO sales.

On the higher end of the condo sales prices, there were 9 condos that sold for over $1,000,000 in March. At the top of that list was a $5,300,000 ‘2-for-1’ sale at Wailea Point in Wailea for side-by-side units totaling 4,584 square feet, 7 bedrooms, and 7.5 bathrooms.

Potts’ Picks

I’m still high on Kapalua Golf Villas for good buys and our Potts’ Pick for the month. My favorite is MLS 340337.  What’s wrong with this one is that it’s been on the market for 886 days.  That’s probably why it isn’t getting much attention.  However, they’ve dropped the price from $547,000 to $419,000.  It’s a one bedroom 2 bath with a large lanai and ocean sunset views. 

For the luxury pick we’re headed down to the world famous Kaanapali Beach. This Alii unit, MLS 351809, priced at $1,300,000 is already priced lower than the lowest selling price in the last year.  If you are an Alii fan, but don’t want to pony up $2 or $3 million, this gorgeous unit may be for you. 

For more information on these or any other units send an email with your request to info@aloharealtygroup.com or, visit our website at www.aloharealtygroup.com.

Single home sales trend flat and boring

Isn’t that a nice change?

A flat, but steady trend is evident in the single family home category. For the last 8 months, going back into 2011, the number of homes sold has been steadily in the high 70’s to low 80’s with the exception of January when only 50 homes were sold.

Compare that to 2010 when the average number of sales monthly was in the 60’s or the beginning of 2009 January saw only 31 sales and February saw just 34, and clearly there is improvement.  The market is getting stronger, but the improvement is slow.

Prices also seem flat based on the stats.  We had a blip when the median bounced up to $513,750 last month, but it came back in line dropping to $432,500 this month.

Distressed properties represented 24% of the single family properties sold in March and 25% of the single family properties listed on the MLS. The fallout from act 48 will likely keep the median prices from changing notably for the foreseeable future.

Area Highlights

So, while some of us are celebrating the modest improvement in the market, there were quite a few declines in the single family market in March. Many of the areas that did ‘well’ were a matter of having the least decline in productivity.  

Pukalani was the only area to have increases in sales units, prices and volume in March. 4 properties sold for a total of over $1.9 million. Sales volume was up 47% from last month and over triple the volume from March 2011. The median sales price was $509,000 – up 30% from February and up 63% from last year.

Kaanapali saw 5 sales – more than double the number of sales in February but down from last year.  Sales volume was up 60% from March of 2011. Median sales prices increased considerably, 89% from last month and over double the median sales price from March 2011.

While the Napili/ Kahana/ Honowokai area sold the same number of properties as last month, the sales dollar volume was over 2 ½ times the total of February’s sales and last  year’s sales. The median sales price came in at $615,000 – about 6% less than February but 3% more than March 2011. 

There were 19 sales in Maui’s Central Area (Kahului/ Wailuku) compared to last month’s 23 for a total of over $7.2 million. This is down 26% from February and down 30% from March 2011.  Median sales prices in the Central area held at $372,000, but decreased slightly from March 2011 median sales prices.

There were no sales in Kapalua. In fact there have been only 2 sales there so far this year.

Highs & Lows

There were 4 homes under $200,000 and 7 selling for over $2 million. The lowest selling price for a home in Maui County was a 4 bedroom, 2 bathroom home in Kihei. You’re probably thinking “That can’t be right!” Well, this home was bank-owned and was under construction. It was unable to be completed due to costly water issues that needed to be resolved with the water district. It closed for $60,000.  

The other end of the spectrum is a 4 bedroom, 6 bathroom, 8,657 square foot entertainer’s paradise in the Wailea Highlands neighborhood in Wailea. Boasting panoramic ocean views, a phenomenal wrap-around infinity pool, a true chef’s kitchen, media room and exquisite indoor-outdoor living areas, this home was listed for $8,999,000 and sold for $7,650,000.

Potts’ Picks

I’m starting with the luxury picks this month and, why not?  There are a pair of oceanfront beauties this month that are both bank owned.  They sit side-by-side on Lahaina’s baby beach.  One of these homes was listed for $9.6 million.  Today you can pick up this 4 bedroom, 4.5 bathroom, 2,700 square foot home for a mere $3,502,000.  That really is a good buy and it’s MLS 351924.

If you are on a more average budget, the buy of the month is in Kahului.  It’s a single story 3 bedroom, 2.5 bath located in Maui Lani.  It MLS 351715 and is listed for $445,000.

For more information send an email with your request to info@alohapotts.com, or see all of the listings on Maui at www.aloharealtygroup.com.

Be sure to visit us on line at www.AlohaRealtyGroup.com

A hui ho!

Get more information and details

To get more information on property and trends, you can search all properties listed for sale at www.AlohaRealtyGroup.com.  If you can’t find what you’re looking for there, send us an email to lee@alohapotts.com, and we’ll do our best to get an answer for you.  As we get more requests for information, we’ll add new sections to the website, newsletter or both.

About The Aloha Potts Team

Aloha Potts is a team comprised of L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA.  We are business people, and we treat our clients with the same care and service attitude that we would like to receive when we do business.  We are in business for pleasure and profit.  We expect that most of our clients will enjoy the property they own in Maui (pleasure), and it would be nice for everyone if your property performs well for you (profit).  Real estate can be highly speculative, and profits are never guaranteed.  So if you are buying property

in Maui, it’s a good idea to surround yourself with a professional team.

Lee Potts is the former President of an international software company and former Marketing VP of a publicly traded franchise organization.  Lee and Barbara are both licensed under Aloha Realty Group. 

Barbara Potts was a CPA with Ernst and Young before joining Apple Computer back when both Steve’s were there (Jobs and Woz).  She was also Director of Strategic Marketing for Grass Valley Group, a division of Tektronix, and a business broker in California.