Market Look at 4 Popular Kihei Starter Condos

                                 October 2017

Popular Kihei Starter Condos – Kihei Shores, Keonekai Villages, Southpointe at Waiakoa and Kihei Villages

First a look at the overall Maui Market…

Sales are very strong for October where we typically start seeing seasonal slow-down.  There were 257 sales in October 2017, compared with just 195 last year. Prices in general are up over 6% over the year.  We have the lowest number of active listings (less inventory) than we’ve seen since 2013! This all shows a very strong market and I would say it is a Seller’s market.  From what I’ve seen, the Canadians are back, despite their dollar exchange rate still being .78 and they have cash to buy a piece of Maui!  

This month, I’m taking a look at 4 popular Kihei starter condos – perfect for renters who want a start in this market.  I was also going to include the newest Kihei development Kamalani but there is not enough data.  They are priced a little bit higher than resales but have features that are appealing at a good price point!  Call me at 808-344-0469 if you have interest in any Kihei properties.  

Kihei Shores, Keonekai Villages, Southpointe at Waiakoa and Kihei Villages – How do they compare?

  • The Largest , Oldest and Lowest Density:  Kihei Villages which has 532 units in 60 buildings on 24.3 acres of land.  Their were 6 phases of construction – 4 built in 1989. It is 1-4 block walk to Sugar Beach depending on where in the complex you live.  1st floor units with yards sell for more as do units closer to the beach.  There is a total of 799 parking stalls (no tandem) so some units have 2 deeded with 4 areas for visitor parking. 476 2b/1.5 bath, 56, 2/2,  pets allowed.
  • Southpointe at Waikaloa  – 346 units, Built 1991 14.8 acres 480 Kenolio Rd 
    few blocks to Sugar beach.  Mostly tandem parking, 31 buildings on 14.8 acres, all 2 story.  1st floor units mostly have yards.   60 2B/1B, 208 2b/1.5b, 68 2b/2b and 10 homes.  Pets allowed.
  • Keonekai Villages – 256 units, built 1992  11.5 acres 160 Keonekai Rd 
    Easy 3 block walk to Kamaole III, most parking is tandem
    48-2B/1B (no dishwasher or laundry), 160 2/1.5, 48 2B/2B  Allows pets, no pool.  
  • Pool And Close to Kamaole Beachpark III:  Kihei Shores – 217 units, built in 1992.  6.93 acres. Was built as worker housing for Wailea Development . Has small pool and spa.  Located at Kamaole III beach park (best location).  Two assigned parking units , 1 unit close to unit.   8 buildings up  to 4 stories , some “basement units” that tend to be least desireable.  Also, some units are 3rd + floor with no elevator.   No pets, 2747 S Kihei Rd.  10 1B/1B, 3 2B/1B, 165 2B/2B, 39 3B/2B. 

DATA IS LIVE!  

Max Time Median

3 Years Median Price

Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui

Have questions?   Looking for a complex or comparing a few?   Contact Kathy at 808-344-0469. 
 

 

 

Market look at Popular South Kihei Condos

The Maui Market – September 2017:  

Popular South Kihei Condos – Maui Kamaole, Hale Kamaole and Kamaole Sands

This month we’ll be doing a deep-dive looking at 3 of my favorite and most popular Maui condo complexes in South Kihei all near Kamaole III beachpark. 

But before that let’s take a quick look at the overall Maui Market for September 2017. We saw increases in sales of condos and an expected seasonal decline in residential sales.  In general, prices are still on a slow climb.   Exceptions to that are in South Maui where median residential prices have climbed 20% in the last year to $862,500.  This is typically our slow time of year where some stats look skewed just because there isn’t enough data.  It is still a busy market and we expect a strong fall and spring.   Several new developments are starting to close and we expect that to bump sales up. 

Maui Kamaole, Hale Kamaole and Kamaole Sands – How they Compare

These three complexes sit right across from the grassy Kamaole III beachpark.    There are a couple other complexes Haleakala Shores and Maui Parkshore that are there too but with 76 and 64 units they are much smaller. 

  • The Largest  Kamaole Sands has 440 units making one of the second largest vacation rental complexes on Maui.  (Ka’anapali Shores is the largest with 463 units).   Guests love the center courtyard with it’s graceful fountain. Although a few have been modified, it is often remembered for it’s magestic spiral staircases in the 2 bedroom units. 
  • Most Land / Lowest Density – Maui Kamaole sits on 23.3 acres and has 13 building with 316 units.  Guests love the easy parking and private feel.   All buildings have 1 bedroom / 2 bath units on the 1st floor with 2 bedroom units upstairs.  
  • The Oldest Hale Kamaole was built in 1974 (same year as Haleakala Shores and Maui Parkshore).  It has 188 units  in 8 buildings.  It recently went through a major exterior renovation so that may have had something to do with dip in prices.  
  • Most Expensive   Maui Kamaole prices have been coming down the last few years but it’s prices are still higher.  The units are generally larger and have large lanai’s — up to 260 sq ft of lanai!  The chart below shows all units sold. 

All of the complexes are great vacation rentals and have good rental income when well managed.  You’ll pay above median by quite a bit if you have a great ocean view! 

 

DATA IS LIVE!  

Comparing Sales Prices

Should I buy 1 or 2 bedrooms?

That mostly comes to your preference and your family and friends.  Both perform well.  From the rental statistics I’ve reviewed,  I usually see a slightly higher return on investment on 1 bedroom units.  The reason is twofold;  first lower priced properties often perform better and secondly, because 1 bedrooms are in high-demand during our peak season January – March.   2 bedrooms are more popular during the summer as families come to visit however rents are slightly lower then too! 

Have questions?   Looking for a complex or comparing a few?   Contact Kathy at 808-344-0469. 
 

Comparing Kihei vs Central Home Markets — August 2017 Maui Market Analysis

August 2017 – Maui Market Quick Look — 

Before we look at comparison of Kihei vs Central home markets, just a quick look at the overall Maui.  Sales are up for both condos and residential units.  Median prices have slowed a bit in the last few months and average prices are up for condos (more new condo developments) and mixed for residential.  Across the board, the days on market is down, showing a strong seller’s market.  

Kihei Vs Central Area Home Markets

I am loving the new ShowingTime tools available to Maui agents.  I was the one on the Technology committee that led the selection and by that, am one of the early adopters.   The tool helps answer many questions but with most data-it is only as valid as the questions you ask.    I’m going to start addressing some of the most common questions that people ask and over the next few months I’ll have a great array of valuable charts.   

Please note that the data that shows is Live – up to date data.   So even though I put this post together in September 2017,  if someone viewed it in 3 years, the data may be very different!  So my blog post comments are a snapshot of now now where the chart will change. 

Many new buyers think they want to live in Kihei.  Kihei offers close proximity to beautiful beaches and is where many vacationers have stayed.   Kihei in South Maui is significantly less expensive to buy a house (median price is $704,000) than West Side ($1,192,500) where the rest of the vacationers have stayed.   Once they start looking though, some buyers ask “Well what about over where the airport is? “.   The airport and all our big box stores are located in Kahului.  Kahului is a “sister city” to Wailuku and in the real estate markets, we call it “Central Maui”.    Kahului and Wailuku are both interesting historic towns with their own culture.  Both have newer “California-style” developments that are back to back — Maui Lani (in Kahului) and Kehalani (in Wailuku).  Looking at the media sales price, you can see that both are less expensive than Kihei.  

Many locals like to live in “town”.  They don’t want to deal with tourists all the time!  And in central, many home still have great ocean and mountain views and are still just 10-15 minutes to the beaches.  

Kihei Vs Central – A Look at the Availability of Homes

As far as availability of homes, it is a mix that changes driven mostly by the availability of new homes.  There are new housing developments in Kahului and Wailuku much of the time.  In Kihei most new development is condos.   A brand new house does have appeal to many with better building, dual pane windows and better insulation.  

The chart below shows the actual number of closed sales over the last 3 years.  There have been a lot of sales in Kihei this year!  When you add Kahului and Wailuku together, though the total numbers soar over Kihei.   There are great home in all areas.  I do encourage buyers to look and compare areas.  If you don’t know Maui well don’t get locked into one area too soon.  Consult with an agent who is familiar with the areas you want to live! 

 

 

Contact Kathy today – 808-344-0469

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports for March 2017

Click on the report and it will be brought up in a new window.

Maui Full Trends Report. 12-page PDF report showing trends for each Area of Maui.
Maui Market Foreclosure Trends – month by month summary of REO and short sales in the Maui Market.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.

June 2017 Maui Market Report

New Statistics and Trend Reports

This is one of many reports included in the reports that the Realtors Association of Maui (RAM) releases each month. Click here or on image to see the full report. The report includes Single Family Market Overview, Condominium Market Overview, New Listings, Pending Sales, Closed Sales, Days on Market Until Sale, Median Sales Price, Average Sales Price, Percent of List Price Received, Housing Affordability Index, Inventory of Homes for Sale, Months Supply of Inventory and a 1-page summary of all of that!

Click on the image or here to view the full report.

There are also extensive reports for each area of Maui. I’m working to find how I can incorporate them into my site for easy access – hopefully next month!  Here is an example for Kihei.

I serve on the Technology committee at RAM. This was our big project last year as we looked at several different reports for generating statistics. I was the team lead so know this tool capability very well! These are the summary reports but I’m more excited about the more detailed reports it offers! With it we can look just at high end properties, or compare two different condos, compare prices of 1 bedrooms and 2…The abilities are pretty endless!

Challenge me with a scenario and see if I can help!

Contact Kathy today – 808-344-0469

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

 

Memorial Day Weekend on Maui

May has flown by for me with 4 escrows and many school garden activities. As I thought about the “long weekend”, I recognize that Memorial Day doesn’t feel the same on Maui. There are many good reasons:

  • We don’t have much military presence on Maui. That isn’t a good excuse for not honoring those who have given their lives to protect our great country and what we stand for. But many Memorial Day events are often organized by the military organizations. We have lots of events but they aren’t all “memorial type events”.   
  • While it is a good weekend for o’hana (family) to gather, it’s not like in many areas where families drive several hours to the lake or mountains or beach. We gather on the beach which is rarely further than 45 minutes away. Memorial Day isn’t much different than other weekends!
  • In most areas, Memorial Day is seen as the kickoff to summer. With our average 72 degree temps we have no reason to kick off summer!
  • There is no prepping the summer garden! In fact most of us think about resting our gardens during the hot summer. Our fruit trees continuously produce through the summer. For me that mean mangoes, sweet pomelo’s, calamansi and lemons – Every Day.   
  • We are driven by the tourist industry and many people don’t get holidays off. Memorial Day weekend is NOT a big holiday here but there are definitely more people here than last week.

This week has been VERY busy and I’m looking forward to a few minutes off. I’m getting ready to go on vacation “off-island” the first week of June for my brother’s wedding. I have again proven that if you want lots of business, you go on vacation. I have 4 properties in escrow with planned closing all between June 14 and July 14. It is much better to be busy than not!

We should all take a few minutes to HONOR those who have given their lives, souls, limbs and loved ones for our country.
Aloha and have a fabulous Memorial Day weekend.

April 2017 Maui Market Analysis

April 2017 – Maui Market Trends

April gave us another strong month of sales although down from March.  Prices generally are trending up – condos 6% over last year and residential about 10% higher than last year

It’s been a busy spring!  Please take time to review the details for each area of Maui! 

 

Contact Kathy today – 808-344-0469

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports for March 2017

Click on the report and it will be brought up in a new window.

Maui Full Trends Report. 12-page PDF report showing trends for each Area of Maui.
Maui Market Foreclosure Trends – month by month summary of REO and short sales in the Maui Market.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.

Maui Property Tax Rates — 2018

A question that is often asked is  “How much will I pay for Maui property tax?”  Maui offers some of the lowest property taxes around – especially for owner occupants.  Property taxes in Maui are paid in 2 installments a year. In most cases, if you have a mortgage, taxes are paid by mortgage holder.

Property Value Assessments

Properties in Maui are reassessed every year and are based on generalized market conditions.  The assessments are usually pretty close to the market value at the time the assessment was performed.  There is often a 18-24 month lag between the time of the assessment and time of payment.

Owners get a assessment statement around March 15.  Property taxes are due in 2 installments in August and the following February.  

Maui Property Tax Rates 

Here are the County Council’s approved property tax rates for fiscal 2018:

Type New Rate Current Rate
Residential $5.54 $5.30
 Apartment $6.32 $6.00
 Commercial $7.28 $6.60
 Industrial $7.49 $6.69
 Agricultural $6.01 $5.66
 Conservation $6.37 $5.80
 Hotel & Resort $9.37 $8.71
 Homeowner $2.86 $2.70
 Time share $15.43  $14.31

The rates are multiplied by each $1,000 of net taxable assessed valuation for properties.

As approved by the Maui County Council for 2017-2018 tax year.

Property Tax Classification

  • Property is classified based upon its highest and best use.
  • Properties receiving homeowner exemptions, condominiums, permitted bed and breakfasts and permitted transient vacation rentals are exceptions.
  • Properties which have been granted a homeowner exemption are classified as Homeowner.  Here is the form to complete for Homeowner Exemption.
  • Condominiums are classified upon consideration of their actual use (Apartment, Commercial, Hotel / Resort, Timeshare, Homeowner). Here is the condominium use declaration form
  • Properties which have been granted a bed and breakfast permit, a transient vacation rental permit, or a conditional permit to operate a transient vacation rental are classified as Commercialized Residential.

Understanding the tax year and timing is important when purchasing a property.  As the buyer, you assume the rate that the previous owner had for the current tax year.  If the previous owner had the homeowner exemption, that is great for you for the remainder of the tax year.  If you qualify for exemptions, they  must  be filed according to strict schedules and exceptions are rare.

Please refer to the Maui County Tax pages form more information.   You can check the status and assessed values of any property on this website http://www.mauipropertytax.com/

 

 

The Up Swinging Market! March 2017 Maui Market Analysis

March 2017 Maui Market SnapshotMarch 2017 – Maui Market Trends

March was a super month for real estate. It is traditionally a strong month and with increases in sales and prices almost across the board, it may be seen as the peak!  The median residential sales price was $769,000! A few months back everyone was talking about being over $700k for first time since 2007.  The average price was over $1.1 million. There tends to be occasional peaks but 8 of 12 months the average residential price has been over a million. We haven’t seen more than 2 months over a million since I started collecting data in 2008.

March Condo Analysis

There is not quite as much strength in the condo market but sales are strong and prices are relatively stable. Number of units sold last month was 130, the highest since April 2014. Average price was $619.6k and median was $407.5k. Comparing to March of 2008, when sales were 91, average price was $975k (Hoolei and Kai Malu were 20 of the sales!) and median price was $527,000.

Predictions

I suspect we will have a strong April, then start seeing activity slow a bit. But everything will stay on an upward path for awhile as long as a world crisis doesn’t happen.  When will the peak happen and we’ll start seeing declines?  I don’t know but it will happen.  My best guess is in a year.  But we will not see the declines of 2008!  Expect some correction of 10-15% max.   
Hey, did you hear MECO is opening the grid again? If you want solar connected to grid, now is the time!

Contact Kathy today – 808-344-0469

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports for March 2017

Click on the report and it will be brought up in a new window.

Maui Full Trends Report. 12-page PDF report showing trends for each Area of Maui.
Maui Market Foreclosure Trends – month by month summary of REO and short sales in the Maui Market.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.

What to Know About the Maui Luxury Real Estate Market – February Market Analysis

February 2017 – Maui Market Trends

This month, I’m going to dive a little deeper into the Maui luxury market.  I’ll define what is luxury and that not all “luxury properties” are very luxurious!  First, let’s take a quick look at the market for February.   As expected this part of the season, we saw an increase in condo sales.   The prices are a little down though; it feels that most buyers are bargain hunters.    Home sales were slow but predict seasonal increases going into June.  We are still in a seller’s market and prices are slowly increasing.  Today’s announcement of an interest rate increase by the feds is no surprise and real estate rates have already adjusted so we don’t see a big impact.   

Maui Luxury Properties

The classic definition of luxury in the real estate industry is usually defined by the top 10% of sales in a market.  In the last year across Maui, that makes our luxury price point $1,340,000. When you look at the 259 sales over the luxury point, the average  price is $2,8640,000. That includes condominiums, land and homes.

117 condos  – average price $2.388 million

13 pieces of land – average price of $2.026 million

129 homes with average price of $3.380 million

Where are Maui’s Luxury Properties? 

When we think of luxury on Maui the areas of Wailea/Makena, Ka’anapali and Kapalua.  The chart below pretty much shows that breakout.  For people who prefer a more reclusive luxury away from the resort areas, there are some beautiful homes along the North Shore overlooking surf areas and windswept cliffs. The long-timers on Maui often prefer the Upcountry area of Kula with expansive full island views, acreage, cooler temperatures and quiet privacy.   And don’t forget Launiupoko with it’s 2 acre lots, fairly new construction, open views and just 5 minutes to Lahaina.   (Launiupoko. is one area without it’s own real estate district… basically look at Lahaina over 1 million  and most homes not on Front Street are Launiupoko.

Are Maui Luxury Properties Really Luxurious? 

Buyers often call and ask for a little shack on the beach. Well I viewed at least one of those that sold last year. It was the smallest home in the luxury category at just 964 sq. ft. and was a cute piece of history (a little nicer than a shack but far from luxury) on Keawakapu beach which spans between Kihei and Wailea.  It sold for $8 million.

Many Maui homes are truly luxurious.  As with all real estate (and maybe even more so!), you often see the quirks of the previous homeowners.  A few thoughts that come to my mind — the huge home where every bathroom was done in DEEP blue granite/marble,  the home where every bathroom had an outdoor shower,  the wine cellar bigger than the theater and the list goes on.  

In looking at only luxury homes on Maui, the median price is $2.1 million.   So most are toward the lower end.  In the last year  we had 22 sales over $5 million with highest sale being $18 million which was a multi-unit sale right on the beach near the airport.  

Does luxury mean large?  Often yes,  however the median square footage of luxury properties is a “not quite spacious luxury” of 2,344 square feet. Remember this includes condos.   And luxury often requires some major rehab too! 

Does Maui Luxury Mean Buyers Pay Cash? 

Many assume that all luxury buyers are cash buyers. The chart below shows that isn’t true.   About 58% do pay cash but many get jumbo financing (great rates) and/or do 1031 exchanges (investment properties).

Screen Shot 2017-03-07 at 7.37.59 PM

 

 

If you are looking for a luxury home in Maui, there are many to choose from.  This group is often slower to sell (average days on market is 223) and many of the properties have been on/off the market for years.  A great agent will help you look at different areas and the features that are important to you.  Knowing the market is key to making sure you get the best pricing advice.   

Contact Kathy today – 808-344-0469

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports for February 2017

Click on the report and it will be brought up in a new window.

Maui Full Trends Report. 12-page PDF report showing trends for each Area of Maui.

 

 

 

Maui Market Foreclosure Trends – month by month summary of REO and short sales in the Maui Market.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.

 

January 2017 Market Trends and Maui Median Prices

January 2017 – Maui Market Trends

Last month, many people were talking about skyrocketing prices when the Realtors Association of Maui released information that the median price of a home on Maui reached it’s highest point since 2007 at over $700,500. 

As I had stated, this was a one month anomaly and this month our median residential price was back to $660,000.  In the last year it has hovered between $600,000 and $700,000.  However,  I’m going to dive a little deeper here to show you can’t expect median prices all over Maui!  

Where can you buy a house for $660,000?  

Where can you buy a “nice” house for $660,000. “Nice” will mean different things to different people.  While I would love to apply the logic of not a fixer upper and in a safe neighborhood, I can’t quantify that through MLS records.  Instead I used a “standard” definition of having at least 3 bedrooms, 2 baths and >1300 sq. ft.  I considered throwing out cash and non-conventionally financed because those have a higher likelihood of being fixer uppers but the results were inconclusive.  Just so you know the financing profiles –> Of the 580 homes  sold for under $660,000 in 2017 – 18% cash, 55% conventional, 16% FHA, 6% VA, 3%USDA and 2% other (owner financed, 1031, rehab, etc).  

Looking at just the homes that met my “standard” criteria, I had only 283 (49% under median price) homes left.  That tells you that over half of the homes sold under the median price may be what we call in real estate functionally obsolete.  Many buyers have a dream of having a “shack on the beach”; they don’t realize that even a “shack not on the beach” is a median priced home in Maui. They still may be great homes but having 1 bath or being very small  is not what most people think of when looking for a “median-priced” home. 

In what areas can I buy a Maui median-priced home?  

Median priced standard homesThis chart pretty much tells you where your best bets are:  

  • Central – Median home price is $572,778
  • South Maui – the Median home price is $735,000 (just Kihei is $720,000!)  
  • Upcountry – Median home price is $670,000.
  • North Shore – Median home price is $1,192,000.
  • West Maui – Median home price is $1,140,000. 

If you are looking for a home in Maui in this category, be prepared!  Most sell fast and there are also multiple offers.  You may not get a “perfect” home and have to do some upgrades but you will be in Maui – what could be better! 

What you should know about Mortgages!  

Screen Shot 2017-02-16 at 8.57.22 AM
I wanted to take a minute to give you the updates on mortgages. We’ve seen rates come down a little bit but all the analysts expect them to go up by year end. This does reduce your buying power. Prices are predicted to continue up at 2-8%. So make sure to not delay in getting talking to a great mortgage professional!

Low Down Payments

Did you know that only 4% of buyers surveyed realized that there are loans available with <5% down? 69% fear they don’t have the down payment. The average first time homebuyer in the U.S. only put down 6%. That is average! The average for upgrade buyers is only 14%. And yet 39% of homebuyers polled, thought they needed 20% down. Screen Shot 2017-02-16 at 9.04.29 AM 

Mortgages are Getting Easier

The chart at the right shows the Mortgage Credit Availability Index and generally shows how easy it is to get a mortgage.  We are not going back to the times before the mortgage meltdown but it continues to get easier to qualify for a mortgage.  If you want to own a home, and haven’t checked for a year, don’t delay!  

Contact Kathy today – 808-344-0469

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports

Click on the report and it will be brought up in a new window.

Maui Full Trends Report. 12-page PDF report showing trends for each Area of Maui.

 

 

 

Maui Market Foreclosure Trends – month by month summary of REO and short sales in the Maui Market.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.