The Latest From Our Blog

This is where you can find out more about what's new at Aloha Group Maui - new homes for sale, new condos for sale, video tours, 3D tours, price adjustments, open houses, our community involvement, and Maui fun!

 

March 27, 2024

Maui Real Estate Advisor ~ Issue 133, March 2024

We are almost through the first quarter of 2024 and over 7 months out from the devastating Lahaina wildfire. We continue to appreciate the support from you and all of the volunteers not for profit organizations.

We also appreciated the help of government entities. Although sometimes it really feels like "they" are disorganized, have some people in place who just don't know how to think or just don't care, we need to remember it's only their day job.

Three examples are: right of entry, home owner exemption for those who didn't meet the filing deadline and forwarding mail. For more of the story, listen to the YouTube link!

What's open in Lahaina - every time something reopens in Lahaina or something from Lahaina opens somewhere else, it's cause for celebration.

Some of our favorite are back in action! We are overjoyed to see Aloha Mixed Plate open. We've missed it for years. It was initially closed when the parent company, Na Hoaloha ʻEkolu, relocated Star Noodle to the old Mixed Plate location. We loved Star Noodle as well, but AMP is Lahaina comfort food.

The same parent company reopened the Old Lahaina Luau as well. If you're looking for one of the best luaus on Maui, this one should definitely be on your short list. 

Additionally, the Cannery Mall, home of Safeway, Longs Drugs, Jersey Mike's and many other retailers, has reopened and is featuring what they are calling their Month of Giving.

Lots of businesses are open and we need your business. Our unemployment rate is 5.8% which is actually down from 6.2% the previous month. A year ago the rate was just 2.9%.

And what about real estate? Let's look at the numbers.

 

SALES:

Sales are the number of properties that actually closed escrow. These properties likely went under contract anywhere from 2 to 8 weeks before closing.

As reported earlier in the month, condo sales were up slightly in January and February and it appears that the number of sales will be up again here in March.

The big surprise in condo sales for March will be the median selling price. It will be WAAAY up. What is that you might be asking yourself. You're going to have to tune in next month for the rest of the story. 

 

INVENTORY:

Inventory tells us how many units are available for sale in each category.

I will say that even with the price bump, our rising condo inventory means buyers have more choices and sellers have less leverage. This could be the best time to buy a condo since even way before the COVID price spike.

 

SELLING PRICE: average and median sold price

We look at Average and Median prices in all categories. A lot of people like to know the average price; however, we tend to use median for most of our analysis, because the median is less likely to be skewed by outliers of a few very high of very low priced sales.

As reported, home sales have been slow but steady, and we're not seeing a further slowdown which is kind of good. 

In West Maui, where we obviously need a lot more homes, there are 71 homes for sale. The lowest priced home is $1.4M. The median price for a home on Maui is $4.5M and the average price of a West Maui home for sale is $6.25M.

There is some construction happening in West Maui and on other parts of the island which is encouraging. Debris is being removed from Lahaina at a better place than predicted, so that's good. We still need infrastructure: electricity, water, sewer - one step at a time.

Watch for more updates, and if you have any questions about real estate or anything that's happening on Maui, we're an email, phone call or text away, and we love hearing from you.

From Maui, this is Lahaina Lee saying Aloooo HA!

- - - - - - - - - - - - - - - - - - - 

The team at AGM continues to help Maui's keiki with their basic day-to-day needs and hope to give out some partial scholarships for summer programs.

You can help by making a tax-deductible contribution at GoFundMe - Keiki Fire Relief Fund or click on the QR code below.

Get more information and details

To get more information on property and trends, you can search all properties listed for sale at www.AlohaGroupMaui.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 Aloha Group Maui

 

Aloha Group Maui was founded by L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. Our team consists of talented professionals; Cheri Miller R(S),  Keri Nicholson R(B), Anthony Freda R(S), Courtney Stice, R(S), Kathy Becklin, R(B), Heather Zidell, R(S), Magdalena Odonnell R(S), Sarah Twitchell R(B), and Tony Brown R(B). We are businesspeople, 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 Keller Williams Realty Maui.  

 

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.

 

Copyright 2023 L. Lee Potts

Statistical information in this newsletter is based on actual sales information reported to the Realtors Association of Maui, Inc.  While this information is deemed reliable, it is not guaranteed.  This newsletter is for informational purposes only and not intended as advice for investment or any other purposes.  Real estate is considered to be highly volatile, and purchasers and sellers of real estate should always seek expert outside advice before investing.  

Feb. 22, 2024

Maui Real Estate ~ Issue 132, February 2024

Aloha, we're a little late with the 2023 Year-end Report. So, we want to shout out a big ALOHA and welcome to 2024. Here is our update for what's happening on Maui, and a look into our somewhat hazy crystal ball.

First, we are grateful for what we have and what we can do to help others. Many of our friends have found new places to live. Unfortunately, some of them no longer live on Maui. Some others only have a place to live temporarily.

The messages we're getting from government sources are usually well meaning, but confusing. While the governor and mayor were threatening short term rental (STR) property owners, FEMA was attempting to make a sweet offer. As most of us understood it, the aim was to secure 3,000 long term rental properties to house those displaced by the fire and living in temporary housing.

After a relatively short time, the FEMA Direct Rental Program stopped taking new applications. I spoke directly to one of the property managers who told me that they had signed up 1,500 property owners. He went on to say that FEMA would be getting the rest of the properties they needed from "other sources."

The next week, the governor once again threatened to "ban" STR's on Maui if we were unable to meet the needs of the fire victims. Almost simultaneously, the Maui mayor sent a letter to STR owners offering a property tax exemption for those willing to convert their their STR to a long-term lease. The letter identified 3 options for long term rental, including the FEMA direct lease program. Our politicians should try talking to each other.

One of the options is from an organization called Kako'o, a native Hawaiian centered organization. According to the CEO of Kako'o, there are currently 1,944 people still in hotels. FEMA is supporting only about 35% of them directly through housing. Kako'o has rental options for non-FEMA eligible survivors. They are also building 54 units and offering forgivable loans for ADU's. That sounds like something worth supporting.

For their part, the county is offering several long-term property tax incentives for people willing to be or already are renting for a wildfire family long term. The county's tax programs can be found at www.MauiPropertyTax.com

As far as Maui real estate goes, let's do the numbers.

________________________________________

SALES:

Sales are the number of properties that actually closed escrow. These properties likely went under contract anywhere from 2 to 8 weeks before closing.

The real estate market was already struggling coming into 2023. In fact, the inventory for both homes and condos bottomed out all the way back in the fall of 2021. It took a few months for sales to follow, but follow they did. By the second half of 2022 sales were in steep decline and bottomed out in January/February of 2023.

In addition to the lack of inventory, sales of properties in the "Maui low" to mid-priced market were suffering due to rising interest rates. Many consumers who wanted to buy on Maui but couldn't find the property or even a property found themselves priced-out of the market due to higher interest rates.

While many of us in the real estate community were braced for the tough combo-punch of low inventory and high interest rates, no one was prepared for what would follow in the 2nd half of 2023.

As would be expected, the sales of both homes and condos were low at the beginning of 2023 due to the inventory story and dropped off after the August wildfires.

The Realtors Association of Maui (RAM) reports 729 home sales in 2023 compared to 1,023 in 2022. That's a 28.7% drop. It may be notable that there was also a 24% drop in new listings.

The same report shows an even more dramatic reduction in condo sales. We finished the year with 969 condos sold compared to 1,520 in 2022 for a 36.3% decline.

Some good news is that since topping out in the 8% range in October of 2023, mortgage rates have been heading in the right direction for home buyers. Will lower rates bring more buyers to the market and thus entice sellers to bring more properties to the market? Let's look at the trend in inventory.

________________________________________

IVENTORY:

Inventory tells us how many units are available for sale in each category.

As previously noted, the inventory of homes for sale bottomed out in December of 2021 at just 163 for sale on Maui. We began to see some modest increases until mid-2022, and inventory peaked in January of 2023.

Home inventory has been stuck at fewer than 250 homes for sale since March. We have been selling about 60 homes per month. With last month's inventory ending at 225 homes for sale, we have only 4 months' worth of homes, and low supply means that even higher prices are likely to follow. That said, the number of new listings in 2023 was 24% fewer than in 2022. 

Condo inventory is a different story. Looking all the way back to September of 2022, not really all that long ago, we had only 155 condos for sale. By December of 2022, inventory had increased to 206, topping the 200 mark for the first time in 5 months. But last month we finished with 374 condos for sale.

More supply should mean that lower prices are on the horizon, right? Not so fast. While that sounds like a nice increase in condos for sale, the number of new listings for condos was 32% lower in the year 2023 than in 2022. We have a way to go.

Additionally, the types of condos that make up the overall supply and the mix of those that are selling are influencing pricing trends. The types I'm referring to in this case are those that allow short term rental (STR), those that do not allow short-term rental, fee simple and leasehold. 

________________________________________

SELLING PRICES: average and median sold price

We look at Average and Median prices in all categories. A lot of people like to know the average price; however, we tend to use median for most of our analysis, because the median is less likely to be skewed by outliers of a few very high priced or very low priced sales.

For everyone waiting for home prices on Maui to drop, get comfortable, you are going to be waiting for a good long while. The median selling price for a Maui home in 2023 was up 8.6% over 2022. With the continuing housing shortage and easing interest rates, I don't see prices coming down.

The average selling price of a Maui home also increased, but only by 2%. Still, an increase is an increase. We might see the average selling price continue to slump closer to the median price in coming months as the Maui luxury market is seeing more inventory. Stay tuned for more news on that apparent trend.

The pricing news was much more the same for condos. The median selling price was up 7.4% over 2022. The average price was up almost 14% year over year.

For 2024, interpreting pricing trends for condos is going to be trickier. We are currently seeing a shift in the historically normal mix of the sales of condos allowing STR compared to those that do not. Condos that allow STR have historically outsold those that don't. That changed at the end of 2023.

In the final 6 months of 2023, according the Maui MLS, only 415 of the condos sold were short term rental as noted in the MLS. There were 45% that were not STR. In the previous year the mix was 52% STR allowed and only 35% not allowed. That is a huge shift and, if you are noticing that neither of those percentages add up to 100 and wondering what happened to the remainder??? Well, not all Maui Realtors put in ALL the data they should for their listings. I am forbidden by the Code of Ethics to make any further disparaging remarks about my fellow realtors. 

There is a lot happening on Maui right now, and somehow, there is a lot that is not happening. We are hearing from the short-term rental property managers that occupancy is strong, and generally they are booked at about 80% occupancy, at least in West Maui, through June. That is going to make some people happy and some people unhappy. Overall, it is good for the whole economy.

Most of us are pleased to see the New Year and expect things to improve. We aim to keep you more updated on progress for West Maui and Maui real estate in general.

Aloha, Y'all.

- - - - - - - - - - - - - - - - - - - 

The team at AGM continues to help Maui's keiki with their basic day-to-day needs and hope to give out some partial scholarships for summer programs.

You can help by making a tax-deductible contribution at GoFundMe - Keiki Fire Relief Fund or click on the QR code below.

Get more information and details

To get more information on property and trends, you can search all properties listed for sale at www.AlohaGroupMaui.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 Aloha Group Maui

 

Aloha Group Maui was founded by L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. Our team consists of talented professionals; Cheri Miller R(S),  Keri Nicholson R(B), Anthony Freda R(S), Courtney Stice, R(S), Kathy Becklin, R(B), Heather Zidell, R(S), Magdalena Odonnell R(S), Sarah Twitchell R(B), and Tony Brown R(B). We are businesspeople, 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 Keller Williams Realty Maui.  

 

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.

 

Copyright 2023 L. Lee Potts

Statistical information in this newsletter is based on actual sales information reported to the Realtors Association of Maui, Inc.  While this information is deemed reliable, it is not guaranteed.  This newsletter is for informational purposes only and not intended as advice for investment or any other purposes.  Real estate is considered to be highly volatile, and purchasers and sellers of real estate should always seek expert outside advice before investing.  

Feb. 2, 2024

Daily Dose of Vitamin Sea ~ February 2, 2024

Update from Maui

Happy Aloha Friday!

February 2...the whales are EVERY. WHERE. It is whale soup out there as they say. You might even see a dolphin or two if you go out for a 3-hour tour. 
In other Maui fire related news, there was a community meeting a few days ago with three alternate disposal sites. Click here to read more and if you live on Maui, there is a link for a community survey to share your feedback. It will be open until February 15. 

In yummy news, Honolulu Cookie Co is launching a Maui collection for fire relief. 100% of the net proceeds of medium assorted cookies and stickers will go towards Maui recovery relief. What a delicious way to support Maui!

As always, we would love to catch up, please call, text or email and let us know how you're doing!
 
Posted in Community, Maui Fun
Jan. 31, 2024

Your Paradise Dreams Come True! ~ 110 E. Huapala Pl

Panoramic, wide open ocean views, brilliant sunsets and the LOWEST priced main home in Launiupoko. It is your paradise dreams come true.

Nestled in the West Maui mountains, 110 E. Huapala Place has two multi-million-dollar views. The unobstructed panoramic ocean in the main attraction and the bonus beautiful green view of the West Maui mountains is the icing on the cake.

You enter your retreat through a private palm lined driveway. The beautiful 4-bedroom, 3.5 bathroom (and outdoor shower) plus home office, provides the quintessential Maui indoor/outdoor living experience with a spacious lanai overlooking the ocean.

This enticing home has cool, long-lasting, easy to care for Travertine flooring throughout the main living areas. The expansive great room has 11-foot ceilings and is large enough for a generous living area and a dining area that is spacious enough for all your large dinner parties. The room can be extended out to the elegant lanai with double bypass sliding pocket doors creating an 18 foot unobstructed opening between indoors and outdoors.

The gorgeous kitchen has a beautifully detailed backsplash, granite countertops, a fabulous triple sink and custom cherry cabinetry. There is an island for both extra storage and extra counter space to prepare the delicious meals for your large dinner parties. The kitchen has stainless steel appliances, a separate bar seating area and views of both the West Maui mountains and the Pacific Ocean. Additionally, a large pantry with uniquely carved doors allows for more storage.

The main bedroom is bright and open with 9-foot ceilings, ocean views and whale sightings when in season. The spectacular main bathroom is the perfect place to soak away your day in the elevated tub with a peaceful ocean view. Grab your warm towel when you're done luxuriating in the bath and head into your huge walk-in closet with built-in dresser and shelving.

The second bedroom has a bay window that allows in the warm Maui sunshine during the day and a view of the stars at night. The third bedroom has large windows with plenty of natural light and views of the West Maui mountains. The home office space has stunning views of the islands of Lanai and Molokai.

The 1 bedroom, 1 bathroom attached Ohana has its own living area, separate entrance, private lanai, and a kitchenette. It can be completely closed off as a private dwelling or kept open as a larger living space for extended family.

The home is environmentally friendly featuring a 2-car garage that has a 240 volt outlet for charging your electric vehicle. The main home has a new efficient Bosch AC unit added in 2023 and takes full advantage of the 30 owned photovoltaic panels and solar water heating. And, yes, it is net metering.

Lush, manicured tropical foliage borders the home and the farm plan has several trees including navel and blood oranges, tangelo, Bearss Tahitian lime, Australian finger lime, lemon, feijoa, mango, passionfruit and many pineapple plants.

Enjoy direct access to walking trails from your backyard or enjoy sitting outside the kitchen and watching the vast array of colors as the sun rises over the West Maui mountains.

Located in beautiful Launiupoko, you are just up the road from Launiupoko Beach Park for surfing and sunning and a short drive to Kaanapali, Kapalua and Kahului for shopping and restaurants.

Posted in Listing News
Jan. 19, 2024

Daily Dose of Vitamin Sea ~ January 19, 2024

Update from Maui

Happy Aloha Friyay!

It was a momentous week in Lahaina; the first residential property was cleared of fire debris and whatever your opinions are about where they are or they aren't putting the debris, how or how they're not removing the debris, it is a huge step forward in the rebuilding process. Read more here...

If you haven't already heard, there is a unity walk, put together by Lele Aloha, this Saturday, January 20. It starts on the bypass above Keawe St. and ends at Launiupoko Beach Park. It is an effort to bring the community together in support of those affected by the fires. Read more and register here...

We hope you have a great weekend and again, call, text or email. We'd love to know how you're doing!
 
Posted in Community, Maui Fun
Jan. 8, 2024

The Sweet Smell of Hawaiian Paradise! ~ Kihei Alii Kai B207

The first thought walking into the Kihei Alii Kai complex is welcome to quintessential Maui! With the cool breeze off the ocean, the tropical birds singing and the sweet smell of paradise, B207 is the perfect Hawaiian getaway.

B207 has a peaceful, large private lanai with a partial ocean view. Enjoy the beautiful sunrise each morning with a cup of coffee in hand and watch the whales jump in the winter months or watch the sky light up with sunset each evening while eating dinner outside.

The one-bedroom, one-bathroom unit is clean and bright with cool and easy to care for tile flooring throughout. The beautiful full-size kitchen was recently remodeled with top-of-the-line stainless-steel appliances, soft close custom cabinetry and a soothing modern backsplash. There is a lot of cabinet storage space, and the quartz countertops provide plenty of room for all your cooking creations.

The kitchen flows into the roomy living area which is filled with lots of natural light and is a comfortable place to put your feet up after a long day exploring lush and picturesque Maui.

The spacious bedroom has room for a California king-size bed and lots of storage. The floor to ceiling mirrored closet provides more storage and the illusions of an even bigger space. The bathroom has also been remodeled and has a large tiled walk-in shower. The unit has a full-size stacked washer and dyer and an owner's lock-off closet.

This vacation rentable unit has easy access to the pool and hot tub. There is a public locked bathroom, a sauna and a shower to rinse off after a day at the beach, so you don't have to worry about getting sand in your unit. The complex has a community BBQ area and there is shuffleboard and a Pickleball court for some neighborly competition on the meticulously maintained property.

Owners have covered priority parking, and the unit is across the street from gorgeous Kamaole Beach Park I and is conveniently located near restaurants and shopping in South Kihei.

Posted in Listing News
Jan. 5, 2024

Daily Dose of Vitamin Sea ~ January 5, 2024

Update from Maui

Happy Aloha Friday!

Wow! It is 2024. Welcome to a new year and cheers to one that is without any major event or catastrophe!

We have noticed that many of you mainlanders have decided to come enjoy the weather on Maui over the holiday break...we're so glad you're here, truly, but do you think we could go back to the horse and buggy system?!?! The roads are crowded! 

We drove up to the Lavender Farm in Kula last week, it is so beautiful up there, the above picture does it no justice. But it was nice to have a different view for a while. And those lavender scones, delicious! Who's with me?!?

If you were traveling over the holidays, we hope you enjoyed your time and that you stayed sickness free! It seems like most people that were on a plane ended up with either COVID or a cold.

Let us know if you're in town, we'd love to catch up.
 
Posted in Listing News
Dec. 30, 2023

Daily Dose of Vitamin Sea ~ December 30, 2023

Update from Maui

Happy Aloha Friday and Happy almost New Year!

Who else is ready for a new year?!? I hear echoes of that same sentiment when 2020 rolled into 2021...it has to get better, right?!?

It has been pretty incredible to see the outpouring of generosity from our community and beyond this holiday season. The Kai Lenny Foundation donated $100,000 worth of gift cards for families displaced by the fire. Maui Preparatory Academy, and numerous other community volunteers, handed them out with a box from the Maui Food Bank, stockings for the keiki, cookies (over 1,000 from the Maui Cookie Lab and they were delicious!), hot chocolate and holiday cheer. The Guy Fieri Foundation donated $1.2M in gift cards to restaurant workers that were impacted by the fires, and the list goes on. We have truly witnessed the spirit of Aloha during this holiday season.

We hope you are able to ring in the New Year with friends and/or family by your side and wish you health, peace and prosperity in the coming year. Remember, if you're in town, let us know, we would love to catch up. 

Hau’oli Makahiki Hou!!

Posted in Maui Fun
Dec. 27, 2023

Just Listed and Already Under Contract ~ Kamaole Sands 5-209

This gem didn't last long! Wonder how else the market is doing in Kamaole Sands? Click here to find out!

Located on the second floor of the only fully-frontal ocean facing building in Kamaole Sands. This well-maintained 1 bed, 2 bath unit offers 818 square feet of vacation-rentable space.

You and your guests will enjoy evening cocktails on your spacious lanai, looking out over the sparkling swimming pool to spectacular sunsets along the coveted South Maui coastline. This unit comes fully furnished outfitted with everything necessary to offer the vacationer from the day of closing. 

Cool tile flooring and air conditioning will keep you cool after days spend by the pool or at Kamaole Beach Park III, just across the street. Located in the heart of one of the only two major tourist destination areas on the island, Kamaole Sands is mere yards from a myriad of shopping, dining, and activities. 

The proximity to attractions, meticulously maintained landscaping and a variety of on-site amenities including a pool and spa, well-equipped exercise room, tennis courts and barbecue areas provide a complete Maui vacation experience, all within the space of a few city blocks. 

1 bed | 2 bath | 818 SF | $864,600

Posted in Listing News
Dec. 21, 2023

Maui Real Estate Advisor ~ Issue 131, December 2023

News Flash: Maui has a housing crisis

Aloha, all, we have been raising the lack of real estate inventory and especially the lack of "affordable" inventory here on Maui for years. The situation became much more pronounced when over 7,000 Lahaina residents were "displaced", and more than 2,000 properties were lost.

In those first few days after the fire and before any government help arrived on the scene, the way the community responded with food, clothing and aloha was extraordinary. It makes me emotional, and grateful, just to think about it.

Individuals scrambled both to provide and find any kind of housing they could. The government stepped in, and hotels and condo owners stepped up to house people who lost their homes.

Now, over 4 months later, we are still trying to figure out how to house all the displaced residents. What some say is the obvious answer - condo-tels and other short term rental properties - are in the spotlight.

According to Mayor Bissen in a piece from MauiNow, there are 13,800 short term rental properties and 16,000 second homes on Maui. It would take less than 10% of those owners to step up and rent long term to solve the housing issue on a short term basis.

Click here for Mayor Bissen's press release.

The mayor's bill to exempt owners of short term rentals from property tax was passed by the county council on December 15. The bill provides an 18-month exemption to STR owners who agree to lease their units long term by February 1, 2024.

That is the carrot, and where there is a carrot, there is usually a stick. The stick proposed by Mayor Bissen is that property taxes for STR owners who do not participate in long-term rental is that their taxes will be raised high enough to cover any short fall in taxes as a result of the exemptions.

The governor, on the other hand, is threatening a ban on short term rentals on Maui in order to force openings for fire victims that need housing.

At the same time FEMA is sending out letters and holding meetings to explain their program and their offer to short term rental owners. The FEMA approach through their Direct Lease Program:

  • here's what we need
  • here's how it will work and
  • here's what's in it for you.

Seems like a pretty good idea. It's almost like they have experience in this kind of thing and the state and county don't have experience. What if FEMA, the mayor and the governor all got together and came up with one comprehensive plan?

So many questions, right? And where does this leave property owners, and how's the real estate market? Let's do the numbers. 

____________________________________

SALES:

Sales are the number of properties that actually closed escrow. These properties likely went under contract anywhere from 2 to 8 weeks before closing.

There was a significant drop in condo sales for the month. November's 53 sales were the lowest for 2023 so far, but that was only one less than January. Still, for the sake of comparison, there was 119 sales in March and 100 in August. With November's low sales and more condos coming to market, it may be a good time for buyers to be shopping. 

Home sales were flat for the month with 47 sales in November compared to 48 the previous month. Late fall on Maui is typically a slower time of year for home sales, but 47 sales this year compared to 63 in November of 2022 is a 25% drop. You might expect that lower sales would be followed by prices declining. That is not happening.

 

____________________________________

INVENTORY:

Inventory tells us how many units are available for sale in each category.

The number of homes for sale just isn't growing. For years Maui County has made it between difficult and impossible to build homes in any quantity. Now, when there is a crisis, the county is coming to the owners of legal short term rental properties for help.

Ok, enough soap box rhetoric.

The number of homes for sale is down from 233 last month to 224 at the beginning of this month. It's also down from the 252 that were on the market in the same month in 2022. On top of that, the average selling price is up over 20%.

Condo inventory, on the other hand, is up to almost 300 condos for sale. We haven't seen that many condos for sale since March of 2021. Add that to the threats being made against short term rental condo owners, and we may see prices softening. We may also see more inventory as some would-be sellers who have been sitting on the fence thinking about selling now or selling later may decide that now is the time to sell.

____________________________________

SELLING PRICES: average and median sold price

We look at Average and Median prices in all categories. A lot of people like to know the average price; however, we tend to use median for most of our analysis, because the median is less likely to be skewed by outliers of a few very high priced or very low-priced sales.

I've already noted that the average selling price for homes in up 20% over the same month in 2022. But at $1,599,751 it is still lower than the peak average prices when we topped $2M.

The median selling price for homes for November came in at $1,100,000 even. That is the lowest median selling price in 5 months. Still, $1M plus is still $1,000,000+.

The average selling price for a condo topped $1.8 million! What the heck? That is the highest average selling price on Maui ever. It turns out that properties at the New Makena Beach Club and Residences, which were never listed in the Maui MLS, stated closing. The 4 that closed started at just over $7.7 million and topped out at over $10 million. Those numbers may have skewed the average selling price a bit.

You may remember this New Makena Beach Club as the old Makena Beach Club, and before that the Prince, as it was remembered by the locals and long term residents. We used to do long weekends there and got the rooms for $99 per night. Seems like yesterday. 

The median selling price for condos was $890,000. That is more than the median price a year ago, but not as high as the $900K + we hit a couple of times this year. 

We may be seeing the shift in the condo market. Based on the few sales coupled with increased inventory we now have 5.6 months' worth of condos for sale. That is technically a balanced market, and we've moved from a seller's market to a balanced market in a hot hurry. Sellers who want to sell should price their property based on the rental market and be patient. The seller's market for condos appears to be over.

The times, they are a changin' Keep an eye out for updates on Maui and Lahaina.

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The team at AGM continues to help Maui's keiki with their basic day-to-day needs and hope to bring some joy to this holiday season.

You can help by making a tax-deductible contribution at GoFundMe - Keiki Fire Relief Fund or click on the QR code below.

Mele Kalikimaka & Hau'oli Makahiki Hou!

Get more information and details

To get more information on property and trends, you can search all properties listed for sale at www.AlohaGroupMaui.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.

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About Aloha Group Maui

 

Aloha Group Maui was founded by L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. Our team consists of talented professionals; Cheri Miller R(S), Suni Novotny R(S), Keri Nicholson R(S), Myra Plant R(S), Anthony Freda R(S), Courtney Stice, R(S), Kathy Becklin, R(B), Heather Zidell, R(S), Magdalena Odonnell R(S), Sarah Twitchell R(S), and Tony Brown R(B). We are businesspeople, 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 Keller Williams Realty Maui.  

 

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.

 

Copyright 2023 L. Lee Potts

Statistical information in this newsletter is based on actual sales information reported to the Realtors Association of Maui, Inc.  While this information is deemed reliable, it is not guaranteed.  This newsletter is for informational purposes only and not intended as advice for investment or any other purposes.  Real estate is considered to be highly volatile, and purchasers and sellers of real estate should always seek expert outside advice before investing.