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!

 

April 16, 2021

Maui Real Estate Advisor ~ April 2021 Real Estate Statistics

Wow, what a month! March started off with some guests arriving on Maui at a slow, steadily increasing rate, and then - BOOM! It suddenly felt like 2019 again, and as it turns out, a report today says there were actually more arrivals on Maui in the final week this month that in 2019. It was noticeable by the number of people on Front Street, the people on the beaches, and the challenge of getting into a restaurant or even getting a reservation. Most of the restaurants are open, and the available reservation times were either very early or very late. There are some restaurants that are closed now, but we are hoping they will be opening soon under different ownership.

Our granddaughter came to visit, and she loves Honu. When we tried to get a reservation, the times were either 2:30 or 8:00pm. And since she likes Art Night on Friday's in Lahaina, we checked out the action on the street. There were lines out the doors of the popular eating and drinking establishments. Most notably among them was Down the Hatch.

And traffic? That was back too. However, even as heavy as it was, it could have been heavier. You see, they ran out of rental cars at our spiffy new rental car complex at the airport with its fancy trolley car (shortest trolley ride ever!). That was great for the taxis and Uber drivers, but even they have been in short supply.

And what happens next for all you off island guests? Well, there are 2 stores of interest. One is that even though you are supposed to have a negative COVID test to come to Maui, some don't. So the Mayor is proposing a program requiring that, upon arrival, you will have to get in line and get a "rapid COVID" test at the airport. The other story is that the Governor is proposing implementation of a vaccine passport program. Is there a potential clash of programs on the horizon? Stay tuned.

So, how's Maui real estate doing in the midst of all this visitor activity? Let me tell you.

Sales

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

We are constantly amazed at the pace of sales for homes and condos in light of the inventory situation which continues to be a challenge. The number of sales for homes and condos has continued to increase at the same time that prices have increased, and the number of escrows is soaring to a level never seen before.

Pending Sales:

Pending sales represent properties that are under contract but have not yet closed. Pendings are the pipeline that tell us how many sales are likely to happen in the next couple of months.

The number of escrows on Maui has put a strain on all the title and escrow companies, lenders, and other service providers needed to get sales closed. The level of activity is unprecedented and has created a backlog with buyers and sellers frustrated, in many cases with delayed closings.

Inventory:

Inventory tells us how many units are available for sale in each category, not including properties already in escrow. While new listings continue to come to market, the new listings cannot keep pace with the continued demand for homes and condos. At the current pace, we have less than 2 months of active inventory. We continue to see multiple offers on properties on the first days of listing in many cases.

Existing home seller and new construction activity are below levels necessary to bring the market back into balance, and the buyer demand in coming months is expected to continue. While homebuilders are working to increase their activity, backlogged supply chain issues have increased construction costs significantly.

Selling Prices: average and median sold prices

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 low priced sales.

On a year-to-date basis, average home prices have increased 54.2%, while median home prices have increased 23.6%. Year-to-date condo prices have increased 22.9% on average with a median increase of 7.9%. Average home prices for the last four months have hovered well above $1.5 million, while median home prices have ranged from $865,000 to $989,500. Average condo prices have ranged from the low $800 thousands to almost $1 million, while median condo prices have ranged from a little over $550K to $645K in March.

Days on Market

The days on market (DOM) is the number of days a property has been on the market until close of escrow.

Average days on market for homes sold has fallen from the 160's in early 2020 to 117. The last time the days on market for homes was this low was in the spring of 2019.

While the days on market increased a bit for condos sold, it's probably a function of increased demand and confidence in COVID restrictions being lifted, resulting in properties being sold that had been listed since before COVID, in addition to delays due to backlog in escrows. The majority of condo sales in March were short term rental properties in West and South Maui.

Thanks for reading, see you next month and feel free to pass this along to any friends looking for real estate information on Maui.

______________________________________

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), Beau Dyer R(B), Angie Liu R(S), Suni Novotny R(S), Keri Nicholson R(S), Myra Plant R(S), Paul Goodman R(B), Jamie Martin R(S), Anthony Freda R(S), Courtney Stice, 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 2021 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.  

 

 

April 12, 2021

Aina Nalu News Q1-2021

Aloha from your resident experts!

Q1 of 2021 seems to be heading back towards normal. The island has been busier, and visitors seem to be coming back in droves. Though the island appears to be hopping, it might be a bit of an illusion since there are still a number of restrictions in place with hotels, vacation rentals and restaurants, none of which are at full capacity. However, one area that is definitely busy, with no illusions, is real estate.

There is no better evidence of this than at Aina Nalu. There are currently no units for sale, and those that sold in the first quarter sold at or near their asking prices, which compared to this time last year are still lower; however, with the low (or no) inventory this will only drive the sales prices up.

Currently, the vacation rental market seems to be recovering quite well at Aina Nalu with all of the Spring Break families and young adults that are on Maui, and owners are starting to see pre-COVID income. We are interested to see how vacation rentals fare as working remotely becomes the norm. Are people buying for an investment, or are they purchasing a second home they can escape to if COVID continues to have such an impact on the way of life on the mainland?

Overall, condo prices continue to strengthen as a result of both low inventory and visitors being able to come back to the island. For more details on current Maui real estate prices and sales, go to MauiRealEstateMarketReport.com for the latest Maui Real Estate Advisor with all the stats.

From January 1 to March 31 there were 11 listings and 6 closed sales. There were 0 cancelled listings, and 0 expired listings at the end of the quarter. There were 0 active listings and 5 pending sales at the end of the quarter.

_____________________________________________

Aloha Group Maui is a team headed by L. Lee Potts, MBA, REALTOR® R(B) and Barbara S. Potts, MBA, REALTOR® R(B) and former California CPA. 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 – and we do it with Aloha! 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 Real Estate Professionals.

Lee Potts holds an MBA and was the President of an international software company. He was also the Marketing VP of a publicly traded company and has been investing in real estate since right out of college.

Barbara Potts holds an MBA, was a CPA with Ernst and Young, held a financial management position at Apple, was Director of Strategic Marketing for Grass Valley Group (a division of Tektronix), was a business broker in California, and has always been a real estate investor.

We would be honored to represent you with a purchase, sale or 1031 Exchange of Maui real estate. If you’re in Lahaina Town, stop in and see us - our office is across the street in Dickenson Square, in Suite 212.

Copyright 2021 L. Lee & Barbara S. Potts
Statistical information in this newsletter is based on actual sales information reported to the R
ealtor’s 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.

April 5, 2021

Daily Dose of Vitamin Sea ~ April 5, 2021

Update from Maui ~ your daily dose of "vitamin sea"

Happy Monday! 

We hope everyone had a great Easter weekend and we hope you were able to enjoy some time with friends or family. 

Anyone who lives here or who has visited Maui before may know about the micro-climates, particularly if you're up North. We got a good view of it today from Honokowai. The first picture is of the clouds sitting over Napili (well, it's really more of the clouds sitting over Molokai, but you get the idea...), and then, to the South, picture perfect blue skies! 

With the island being busy again, some of our favorite restaurants are finally reopening. Taverna in Kapalua opened at the end of March, with a new coffee bar addition, Dolces (the mochas are great!). And Slappy Cakes reopened April 1! 
 
 
 
Stay safe and well!
Click here for the latest updates from Maui
Posted in Community, Maui Fun
March 31, 2021

Daily Dose of Vitamin Sea ~ March 31. 2021

Update from Maui ~ your daily dose of "vitamin sea"

Aloha!

Whew, this island is busy! We were down on Front Street over the weekend and it was akin to what it looks like on Halloween (and if you've never been on Front Street for Halloween, it should probably be on your bucket list...). Those stimulus checks are being put to good use here!

Check out the video below for an insider's view. And as always, if you have any questions or just want to see how things are going on our beautiful island, feel free to call, text or send a message in a bottle. We'd love to hear from you!
 
 
 
Easter Break update for residents and visitors. Front Street is hopping!
 
Stay safe and well.
Click here for the latest updates from Maui
Posted in Community, Maui Fun
March 26, 2021

Daily Dose of Vitamin Sea ~ March 26, 2021

Update from Maui ~ your daily dose of "vitamin sea"

Happy Aloha Friday!

Spring Break seems to be in full swing here on the island. The beaches are full, the roads are busy, restaurant reservations are booked days out and the weather is fantastic!

COVID protocols are still in place at all establishments, numbers have increased slightly again, but vaccinations are starting to be available in more locations. As of March 29, those 60 and older in Hawaii are eligible to receive the vaccination, so we are thankful things continue to move forward. 

Hopefully spring has sprung wherever you are and if you're on Maui, get outside and enjoy this beautiful island! Have a great weekend and we'll see you Monday. In the meantime, if you need anything, let us know, we'd love to connect!
 
 
Aloha Group Maui has the monk "seal" of approval!
It is pretty rare to come across these endangered guys, and we've been lucky enough to see them twice this year!
Click here to read more about the Hawaiian Monk Seal and how you can help protect them.
 
Stay safe and well.
Click here for the latest updates from Maui
Posted in Community, Maui Fun
March 17, 2021

Daily Dose of Vitamin Sea ~ March 17, 2021

Update from Maui ~ your daily dose of "vitamin sea"

Happy St. Patrick's Day! 

One of our very own team members, Keri Nicholson, participated in the 10th Annual Extreme Bocce Ball Tournament over the weekend and Aloha Group Maui also had the privilege of sponsoring a sign. The tournament supports the Maui Food Bank with their Aloha Backpack Buddies Food program which feeds school children enrolled in over 25 schools in Maui County. They are on track to raise over $21,000 by the end of March!

Although the "Luck O' The Irish" wasn't with Keri's team, they had a great time and look forward to next year!
 
As a result of COVID restrictions, they operated the tournament on one court with 2 teams!
 
In need of some bagpipe music? 
 
Stay safe and well.
Click here for the latest updates from Maui
Posted in Community, Maui Fun
March 15, 2021

Daily Dose of Vitamin Sea ~ March 15, 2021

Update from Maui ~ your daily dose of "vitamin sea"

We hope everyone had a good weekend. Our idyllic Maui weather is back and it is as beautiful as ever just in time for Spring Break!

Kids are coming home from the beach sun-kissed and salt soaked, with tales of wipe outs and epic waves (am I painting a rosy enough picture?!?)

The island is definitely coming back to life and though we are still using an abundance of caution, we are feeling like maybe, just maybe life will get back to normal, or a semblance of normal anyway. There is at least hope on the horizon!

Let us know if you're in town, we would love to connect. Aloha! 
 
Saturday's skies: the stormy skis are gone, but the waves are still rolling in!
 
Incredible photo of a flying fish or malolo by LCHIU MD
"It is only when you're flying above it that you notice how incredible the Earth really is."
~Philippe Perrin
 
Stay safe and well.
Click here for the latest updates from Maui
Posted in Community, Maui Fun
March 13, 2021

Daily Dose of Vitamin Sea ~ March 12, 2021

Update from Maui ~ your daily dose of "vitamin sea"

Happy Aloha Friday! Winter is still here! And on Maui that means rain, rain and more rain!

Unfortunately, there was heavy flooding in Haiku and out to Hana earlier this week; enough that it damaged and destroyed some homes in the area, and our hearts and thoughts are with everyone that is still dealing with the aftermath of that situation. 

The positive part of the rain is that things are green and beautiful! Hope everyone has a great weekend and stay warm Colorado!
 
This is a great picture of the beautiful sunflower fields from our client Linda Chiu!
 
"I've got sunshine on a cloudy day."
~The Temptations
 
Stay safe and well.
Click here for the latest updates from Maui
Posted in Community, Maui Fun
March 9, 2021

Maui Real Estate Advisor ~ March 2021 Real Estate Statistics

Quick Update:

Aloha, if you would like to come to Maui, we're open! If you don't know where to start with the required testings it's really not that hard, we've done it. Click here to find the State of Hawaii's Travel Partners. Barb was just checking online for some airfare updates and it looks like there are some deals out there. Come on out, soak up some nice warm sun, and enjoy the whales!

Speaking of whales, February is Whale Soup Month. If you're not familiar with that term, it means if you're lucky enough to be out on the water in February, no matter where you turn, you can't help but see spouts, breaches, tail slaps and all kinds of activities. If you weren't here, you missed the soup, but there are still tons of whales, literally and figuratively, out playing in the sun. We were out yesterday. If you want to see how it was, check out Whale Snot and Monk Seals below.

So, how is real estate doing on Maui? 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.

It seems like I say this every month, real estate sales are defying gravity. What I mean is, I don't understand how sales can keep happening at the current rate. The number of home sales has varied very little in the lat 6 months and sales are up 21.7% over the same month last year. What has varied are inventory and selling prices, each of which we'll dig into a little later. 

Condo sales are much the same. I'm very surprised to see that sales are up 23.9% over February of 2020, when we were effectively pre-COVID, at least form a quarantine basis. Both the December 2020 and February 2021 sales exceeded 160 condos. Those are the highest numbers we've seen in at least 3 years.

And where are these condo sales happening? The hot spots are Kapalua, Lahaina, and Wailea.

Pending Sales:

Pending sales represent properties that are under contract but have not yet closed. Pendings are the pipeline that tell us how many sales are likely to happen in the next couple of months.

The number of properties pending, or under contract, soared to 800 at month end and keep climbing like there is no gravity and no shortage of inventory.

The number of single family homes under contract is up 62.5% over the same month last year. Although you can see form the chart that it was pretty consistent from September through January before taking a big inventory defying jump in February, I don't see a single month in the last 3 years that had 266 pending homes.

There are currently 384 condos under contract. Last year at this time there were just 306. According to the Realtor Association stats, then number of condos that went pending in February was up 76.3% over the same month in pre-quarantine 2020.

Inventory:

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

And now, for the issue that is plaguing almost every real estate market in America, that 9 letter word, inventory.

There are currently 205 homes for sale. At the current pace of sales that is enough to last 2 months. However, at the current median selling price, there are only 38 homes for sale on Maui. We can not measure our inventory by weeks or even days at the "lower" price points.

At the mid-price point, $900,000 to $2,000,000 there are only 50 homes for sale. In that range we have 2 months of inventory. At $2,000,000 and up we have 5 months of inventory. By National Association of Realtors standards, even at $2 mil, it's a "seller's market".

The inventory of condos is also falling rapidly. Just look at September's number vs. today. The good news there is that the number of new listings coming to market is actually up over this time last year. They are just selling faster than they are coming to market. With 506 for sale, that's just enough for 3 months of sales at the current pace.

Selling Prices: Average and median sold prices

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.

Stop me if you've heard this before. It's all about supply and demand. Although the median selling price for homes is down from January's all time high of $989,500, February's number is almost 20% higher than February of 2020.

The average selling price seems to be closing in on $2,000,000. Last February, it was under $1,000,000. That is an 86% jump in selling price. WOW!

The changes in condo prices are not nearly so dramatic. In fact, those price points are boringly stable. In fact, a year ago, the median selling price was $556,000. Compared to February's $558,495, that's statistically the same. But remember about that supply and demand thing.

And add this - the average selling price certainly is not stable. The average price a year ago was $666,694. Average prices have topped $800,000 in 5 of the last 6 months and even broke $900,000 once. What does that tell us? More of that higher price inventory is selling now that it was a year ago. That's where the hot demand is right now.

Days on Market:

The days on market (DOM) is the number of days a property has been on the market until close of escrow.

After what I used to consider to be a normal number of days on market, homes dropped back to 125. Only 30% were cash sales and banks' lending departments are backed up due to low interest rates and refinancing, so, I'm not sure why that number is down.

The DOM for condos seems pretty normal. The limited number of banks that will finance condo-tels, short term rental or vacation rental condos, are telling us they are taking about 75 days to close a loan now. So, I expect that those will remain at about that level.

Thanks for reading, see you next month and feel free to pass this along to any friends looking for real estate information on Maui.

____________________________________________________

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), Beau Dyer R(B), Angie Liu R(S), Suni Novotny R(S), Keri Nicholson R(S), Myra Plant R(S), Paul Goodman R(B), Jamie Martin R(S), Anthony Freda 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 2021 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.  

 

March 5, 2021

Daily Dose of Vitamin Sea ~ March 5, 2021

Update from Maui ~ your daily dose of "vitamin sea"

Happy Aloha Friday! Other than our brief Tsunami watch yesterday, things are pretty low key around here. More and more residents that qualify are getting vaccinated and shops and restaurants that were "waiting to see" are starting to announce that they're opening again. The pinprick of light at the end of the dark tunnel is starting to get a little bigger.

We hope you have a great weekend and if you need us, we'll be on the beach watching for whales (but we're ALWAYS happy to chat!).
 
 
"The weather is changing, let it change. Law of nature is that nothing remains the same."
~Unknown
 
Stay safe and well.
Click here for the latest updates from Maui
Posted in Community, Maui Fun