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Oct. 18, 2024

Maui Real Estate Advisor ~ Issue 137, October 2024

Some interesting news. They are talking about an inter-island ferry, connecting Lanai, Molokai and Lanai. Meetings are being held next week.

Turning to the Lahaina wildfire cleanup. This graphic is from the Army Core of Engineers and you can find this at MauiRecovers.org.

Just focusing on the highlights you can see the army core has made excellent progress. 1390 of residential properties have been cleared and it says 1384 have been completed. 

102 of commercial properties have been cleared, and 72 are complete, so there is still a lot of work to be done in that sector. Their aim is to be finished by the end of February. 

So this is a great website for keeping us posted on what is happening and it's a place you can visit often to get updates. The big question, the one thing everyone wants to know is after the cleanup, what is the plan?

The county has set up an office to expedite building permits, which sounds great, however, progress is very slow and the office is getting mixed reviews from the locals. There is no plan for central Lahaina as yet. There was a report done back in July that a draft plan would be released to the public in the fall. It is now the fall.

The mayor is holding regular budget meetings that are open to the public to get input for the next fiscal year. That fiscal year begins on July 1, 2025. That is the same date that the mayor and many other council members are hoping to shut down a few thousand short term rentals in West Maui. That is going to put a big hole in Maui Country property tax income.

So it seems reasonable to ask, if you need a lot more money than we have to help rebuild Lahaina, and you're planning to cut off one of the biggest sources of revenue for the island, how is the difference going to be made up? I can only think of one way.

If we're talking about the economy, we have to talk about tourism. According to a report published by the research and economic analysis division of the department of business economic development and tourism of the state of Hawaii, about $.70 out of every dollar spent on Maui comes from tourism.

And tourism is down.

As a benchmark, most organizations are using 2019, the year before COVID, as the primary basis for comparison. Overall, tourism in the state of Hawaii is down over 11.5% compared to August 2019. However, spending is actually up 15%. 

On Maui, the average daily census for visitors was about 47,000. That is down 26% from August 2019. 

For the first 8 months of 2024, there were 1.575 million visitors on Maui. That is down 17.5% from 2023 and over 25% from the first eight months of 2019.

That is the data that has been reported so it sounds like those are the facts.

However, in talking to people who run restaurants, small business owners and managers of short-term rental properties, it feels like business is down about 50%.

In my own, very non-scientific observations that would be anecdotal information, includes the ability to drive up to the gas pump at Costco without waiting in line, and easily finding parking at Costco, Kaanapali Shores, and the local mall areas.

Unemployment on Maui for the last reported month, which was June 2024, is at 4.5%, which is pretty close to full employment. However, unemployment on the other islands is running at about 3%.

So if tourism is down, and spending is down, what do you think is happening to real estate?

Well, let's do the numbers.

Last month, when we looked at condo sales, even though we had 6 sales, a lot of those were from old inventory, so I concluded that we were really looking more like 49 sales. This month, we had 50 sales, so that was fairly consistent. We can see that the inventory stayed over 700, so we still have 14 months worth of inventory.

Now, I'm going to jump down to selling prices, starting with the average sold price. It was a little over $1.1 million in September, compared to over $2 million in August. That big drop-off reflects the closing of all the properties in Wailea and Makena.

The thing that is really interesting about this is that the median selling price stayed at almost $1 million. What's even more interesting is that the median asking price last month was $995,000, while the median sold price was $990,000. So, we keep talking about this being a big buyer's market, but we're just not really seeing that reflected in the numbers.

So that's it for condos. Turning to single-family home sales, we can see that the number of homes sold has been a bit up and down. In June, there were 65 sales. July had 55. August saw 63, and September dropped to 51. So, up and down, up and down. But if we look at the pending sales, in July, it was 132. August dropped to 114, and in September, it went back up to 129. So, maybe we'll see 60 or more sales in October, following the trend set by the number of pending sales.

Inventory is something we always talk about. Home inventory, meaning the number of homes for sale, has been creeping up a little. But in September, it dropped back to 335, so inventory has kind of flattened out. In comparison to sales, we have about six and a half months of inventory. So, from a macro standpoint, the market is actually really balanced.

In terms of single-family home selling prices on Maui, let's look at the average sold price first. Back in July, it was $1.5 million. That rose over to $1.8 million in August and then went over $2 million in September. What's more interesting to me is the median selling price. It went from $1.2 million, to over $1.3 million, and now it's over $1.4 million.

What makes this particularly interesting - though you can't see it here - is that the median asking price for September was $1.426 million, while the median selling price was $1.428 million. So, the selling prices were actually higher than the asking prices. That's a pretty interesting trend in a market where it's really a buyer's market in much of the island.

That's the news on real estate. A little news on the rebuilding process over here on Maui, maybe a few opinions... If you're watching this from the mainland and thinking about coming over, come on over - there's room! Plenty of room at the restaurants too, so come and pay us a visit. If you're here on Maui, I think the economic scene is going to be turning around. We'll get through the elections in November, both local and national, and hopefully, we'll get another rate cut, which will help things out. And as it gets colder on the mainland, we can count on some visitors coming back.

If you're reading this and have any thoughts or comments, drop them below. We sure appreciate it, and we hope to see you soon. From not Lahaina, this is Lahaina Lee saying ALOOOHA.

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), 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.  

 

Sept. 25, 2024

Maui Real Estate Advisor ~ Issue 136, September 2024

Aloha From Lahaina Lee

Maui Real Estate Advisor - September 2024 Edition

 

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What's on Everyone's Mind Right Now?

The Economy.

Right now, the biggest topic across the country, as always, is the economy. Whether you think we are in a recession or not, you're probably right!

Most economists say we're not in recession, but here on Maui, it's a different story. Tourism drives our local economy, and if you've been following the numbers, you'll know that our county is feeling the pinch.

According to the Department of Business, Economic Development & Tourism (DBEDT), visitors to Maui in July 2024 were down 20.1% compared to July 2023 and 23% compared to 2019. Daily visitor counts were also down by 21% in July compared to the previous year. It's no surprise that people are feeling the effects.

On our last trip to Costco for gas, we didn't even have to wait in line at the pump. We just drove right up to fill 'er up. That makes it official - Maui is in a recession.

The sunset is even pretty from the Costco gas line!

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How Does This Impact Real Estate?

The proposed bill to roll back the right to rent 7,000+ short-term condos has many sellers and buyers nervous. Most realtors, especially in West Maui and South Maui, have received THE call from anxious property owners asking if they should sell. But there's no one-size-fits-all answer. The uncertainty in the market is making both buyers and sellers hesitant about making decisions.

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Let's Talk Numbers: Condo Sales

Looking back over the last six months, condo sales have stayed relatively consistent, ranging from 64 to 75 units sold each month. However, the pending sales (properties under contract that will close soon) are telling a different story. We're seeing a slow decline in pending sales, which should eventually be reflected in the sold numbers. But there's an interesting twist - recently closed sales from high-end luxury condos that have been under contract for years are skewing the numbers.

If we exclude these high end condos as outliers, there were only 49 condo sales that were created in this market and closed in August. That brings us down to levels not seen since the 2008 recession.

Inventory or supply, is rising quickly in the other direction, from 473 condos for sale in March to 743 by the end of August. Demand is dropping faster than the sales numbers reflect, while supply continues to rise. 

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Single-Family Homes: Buyers vs. Sellers Market

I've heard a lot of people say that it is a buyers' market for single-family homes on Maui. However, if we look at supply and demand, the sold and the inventory lines, we have almost exactly 6 months of inventory. That is the definition of a balanced market according to the National Association of Realtors.

The number of sales over the last six months has been fairly steady. If we take out July, the number of sales has ranged between the mid 60s and the mid 70s for six months.

Looking down at the pending line, we can see that inventory peaked back in April with 147 sales and has dropped every month since. That certainly indicates that sales in the upcoming months may also decline.

The question mark comes with the inventory. Since April, inventory has increased every month, winding up at 344 homes for sale at the end of August. 

What we can see if we dig deeper into the numbers is that we have a buyers' market in the two most expensive areas on the island, and a sellers' market in the 2 most 'Maui' affordable parts of the island.

The median asking price for a home in South Maui - Kihei and Wailea, is just over $2.1 million. The median asking price in West Maui - Kaanapali through Kapalua, is $5.75 million. In both those areas supply is in abundance.

In Central Maui and Upcountry, we see prices are a bit more affordable at $1.375 million and $1.7 million respectively. Those are both sellers markets with each having, give or take, three months of inventory.

The median selling price on Maui has stayed right about $1.3 million. That is out of reach of most Maui residents. The average selling price over the last six months is interesting in that it has, for the most part stayed below $2 million. That indicates that luxury buyers, those buying homes for $4 million and above, are sitting on the sidelines. What are they waiting for? 

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Looking Ahead: Optimism on the Horizon

While things may seem tough right now, I'm optimistic about what's to come. All the factors that have hurt our economy are coming to a head in the next few months. My crystal ball tells me the worst of this downturn will last no longer than 60 to 90 days, and after that, we'll start seeing an upswing.

For buyers, the next couple of months might be your best opportunity to get into the market before things start picking up again. And for sellers, if you don't have an urgent need to sell, now might be a good time to hold steady.

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That's all for this edition of the Maui Real Estate Advisor. If you have any questions or comments, let us know! 

 

Sept. 21, 2024

Daily Dose of Vitamin Sea ~ September 21, 2024

Happy weekend!

We hope this email finds each of you well. Progress is slowly being made in Lahaina, they have reopened some of the neighborhoods and though it still wrenches my heart every single time I drive through town, it is encouraging to see cleared lots and a sprinkling of homes starting to be rebuilt. 

The best news is that whale season is just around the corner! The first one was sighted in early October last year, so it's about time to keep your eyes peeled!

As always, we'd love to hear from you, so feel free to text, email or call.
Posted in Community, Maui Fun
Sept. 16, 2024

Rare find in Kapalani Estates

4087 N Paua Way is located in one of the best spots on West Maui ocean and outer island views.

Nestled just a few feet above the quiet community pool and clubhouse in the gated community of Kapalani Estates, this split-level 5 bed, 3 bath home has 2,502 square feet of beautiful bright open spaces.

The home has gorgeous tiger wood flooring and open beam ceilings creating a warm and modern feel. The large kitchen is equipped with an ocean view, granite countertops, state of the art stainless steel appliances, and plenty of storage. It opens to a spacious great room with room for comfortable seating and a large dining room table.

The focal point of the home, however, is the wrap-around lanai where you can enjoy grilling and eating dinner while watching the brilliant evening sunsets or listening to the birds with your morning coffee. It is the perfect home to entertain family and friends.

The spacious main bedroom opens to the lanai and is en suite, with a luxurious bathroom that features granite countertops and a tiled walk-in shower.

The lower level has an additional 2 bedrooms and 1 bath. There is a large great room with breakfast nook that is ideal for either additional living space or visiting family or friends. It has a separate entrance for more privacy and convenience.

The home has air conditioning, a two-car automated garage system and the added amenities of a community pool, clubhouse and tennis courts. It sits on a huge green space, perfect for any outside game you can dream up. The popular surf spot, S-Turns, is just across the street as well. It is located between Kapalua and Kaanapali, with multiple restaurants, coffee shops, grocery stores and shopping.

Call you favorite Realtor for a showing today!

Cooperating Broker's Agreement is 2.5%

Posted in Listing News
June 29, 2024

Update from Maui

Maui's Short Term Rental Update:

Maui's burning issue and current debate is over whether or not to roll back the law that allows some 7,000+ apartment zoned condominiums to do short term rental. 

For years and years, Maui has had a housing crisis. The crisis was heightened by the Lahaina and Kula fires in August of 2023. In response to outcries for housing, especially in West Maui, the Maui Mayor, put forth a bill to repeal the right of condominiums in apartment zones to do short term housing with the aim of converting those short term rentals into long term rentals or owner occupied condos. 

These condos were in fact purpose built for short term rental, and have always had the right to use their property for vacation rentals. That right was codified into law by an ordinance adopted in 2014 and 2016. 

Earlier this week, the County of Maui planning commission heard testimony from 130 people. Eventually, the planning commission deferred any action and will hear additional testimony now scheduled for July 9. According to estimates, 30-40% were in favor of the bill to roll back the STR's. 60-70% of those testifying opposed to rolling back the STR's.

But even in the polarized atmosphere of those expressing concern that either the continuation or the rollback of these STR's posed an existential threat to them there was one point of agreement.

The agreement is the need for affordable, dignified housing on Maui.

In comments on why we are facing a housing crisis, Mayor Bissen cited, " a myriad of complex issues that have challenged our community for decades." He went on to state "this is a consequence we cannot and should not accept. Our system is long broken and long overdue for change." 

Hallelujah.

For decades, it has been somewhere between very difficult and impossible for builders to build workforce housing. The US Census Bureau noted that housing on Maui was "essentially zero" from 2018 to 2022. 

You can always reach out to us by text or email or drop some comments below. And remember, nobody knows Real Estate on Maui like Aloha Group Maui. ALOOOHA.

Posted in Community
May 30, 2024

Great Family Home in Maui Lani!

Located in Maui Lani, in the desirable neighborhood subdivision, Traditions, 305 Pulihi Street welcomes you in with a beautiful and meticulously furnished home.

This 3 bed, 2.5 bath home has beautiful, modern luxury vinyl flooring throughout for easy care. The immaculate home opens to a thoughtfully designed entryway to keep the clutter of the day contained with built-in shelves. There is additional storage under the stairs, continuing to utilize all the nooks and crannies. You see the care and attention to detail in each piece of furniture selected to highlight the home. With unique touches like the cut koa wood coffee table and the modern breakfast seating nook, this home feels like a luxurious retreat.

The bright and open great room has comfortable seating for movie nights, a dining table for long evenings entertaining and a large kitchen for cooking plenty of holiday meals.

The kitchen is a chef's dream with plenty of storage in the custom cabinetry, lots of counterspace and beautiful updated appliances. There is more seating at the counter for a quick family breakfast, or to linger over a glass of wine with the chef.

Head upstairs to the spacious main room that is en-suite with a large bathroom and a cozy reading nook. The bedroom has a walk-in closet and a view of the spectacular West Maui mountains.

The additional bedrooms have the same bright open feel, and one is set up as a movie room, with soft greys and blues, inviting chairs and more view of the West Maui mountains. The rooms can be used as bedrooms, an office space or an exercise room. Your imagination is your only limit.

The home has a two-car garage with a full-size washer and dryer, built-in overhead storage, air-conditioning and a leased PV system. Conveniently located close to schools, shopping, restaurants, parks and more, this gem won't last long!

Call your favorite Realtor today to schedule a showing!

Posted in Listing News
May 27, 2024

Maui Real Estate Advisor ~ Issue 135, May 2024

Aloha, this is Lahaina Lee and this is your Maui real estate advisor May edition.

Well, things have been hot here on Maui, and not to make light of a bad situation, but fire season has officially started here. During the week of May 9, there were several incidents, the largest being a 30 acre burn area near the Veterans Highway, which is the highway from Kahului down to Kihei. Needless to say, high winds and fire make a lot of us very nervous.

The housing situation on Maui is still kind of upside down. The Maui News reported that the non-congregate FEMA sheltering program has been extended to June 10. According to the report about 85% of individuals and families have successfully transitioned out of the program. However, that still leaves about 600 families and more than 1,500 people in the program that have to be transitioned out. 

At about the same time, Civil Beat is reporting that FEMA is still spending millions of dollars on nearly 500 empty condos, apartments, and houses.

There are obviously some serious disconnects here. One big issue for people who lost their homes, but are still staying and working on the Westside, is that potential housing on other parts of the island simply isn't doable for them.

I was talking to a food and beverage manager at one of our Westside restaurants he told me they were losing one of their good employees. This fellow has a low paying job and the only place available for him, that he can afford, is going to be on the south side of the island. Now you, especially those of you who live on the mainland and have a commute, might think commuting form Kihei to Kaanapali doesn't sound like a really big deal. However, if you don't have a car, and you're dependent on Maui's public transportation or riding your scooter back-and-forth over the Pali two times a day, sometimes in the dark, its just not a solution that's going to work. 

In another case, a young woman that we know who works on one of the boats that goes out of Kaanapali found her own housing in Kihei. She had a car and did the commute six days a week. Her gas bill running $150, she was finally fortunate enough to find something on the Westside. 

There have finally been some new housing starts for "affordable" housing. Some of it is making very good headway, but we are clearly on a timeline here.

As a solution to this situation, Maui Mayor Bissen, has announced he is putting a bill that would repeal the right of Minotoya condo owners in both West and South Maui to do short term rental. This proposed bill faces plenty of opposition and even if passed would not begin to go into effect for over a year.

There are so many logical, financial, and certainly, emotional reasons that this will not be a solution. However, we will do a separate podcast on that topic coming to you soon.

In the meantime, how is all this affecting the real estate market on Maui? Well, let's look at the numbers.

In April, home sales remain strong with 69 closings. That's down a little bit from last month, but it is still the second most closings since June of last year.

The inventory of homes for sale remained flat with slightly fewer for sale in April than in March. Hovering at just over 260 homes for sale, that's higher than any other time in the last year, except for March. The stronger inventory level is being supported by new listings. The new listings are up 22.5% in 2024 over the same time in 2023.

That's the good news, and if you are a seller, that is still the good news. For buyers, the months of inventory level is still below four, which keeps us firmly in the seller's market.

After a good increase in March, selling prices remained strong. In April, the average home was selling for over $1.8 million, and the median price was maintaining its level at an even $1.3 million.

To give that a little more statistical context, the median price for the first four months of 2024 is up 13.3% over the same time frame in 2023. Given the current low levels of inventory, I do not see prices easing in the foreseeable future. 

So, what's happening with condos?

Condo sales exceeded 100 units for the first time since August. Sales have been quite strong with more than 90 units selling in each of the last five months, except for February.

It appears that condo sales are being aided by rising inventory. Condominium inventory bottomed out back in August with just over 184 condos for sale. In April, we reached 518 condos for sale, which is an increase of about 260%. New listings are up 40% over the same time last year on a year to date basis. That is a huge injection of inventory. But, with increased sales, we still have under five months of supply.

Even though the market still slightly favors sellers, at least according to rules of thumb, you would think that big jump in inventory would have an impact on selling prices. However, the median price for condos is up 8.4% in April over the same month in 2023. Year to date, through four months, selling prices are up 7.3%. Average selling prices all out of whack due to some rather large closings way down in Makena.

So, despite what we read in the papers, specifically tourism is done, prices are too high, Maui condos are still in high demand and prices have continued to rise. Most of us have been of the opinion that the unfriendly position of the Maui government would have an effect on the value of condos on Maui. Clearly, people are concerned based on public opinion, but that is not being reflected in prices at this point. 

So take that County Council.

That is this months snapshot of real estate on Maui. We will keep you updated on trends and posted on developments here on everyone's favorite island. 

If you have questions or comments, drop them in comment section down below. If you have answers, don't wait. Call me.

We'll see you next month and remember, nobody knows real estate on Maui like Aloha Group Maui. 

From Kihei, this is Lahaina Lee saying ALOOOHA.

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 2024 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.  

May 2, 2024

Daily Dose of Vitamin Sea ~ May 2, 2024

Aloha!

We just wanted to give you a quick update on what's happening with the Maui Keiki Fire Relief Fund. We've been hard at work since last October, providing monthly support to families with children affected by the fires. But here's the scoop – unless we get a boost in funding, we are going to have to wind things down in June. 

So far, we've raised a total of $60,115 thanks to the generosity of folks like you. We've already distributed $46,500 to 39 families and 82 kids. That's a significant impact right there.


Here's where we need your help. Back in December, we had to close applications with 50 families receiving checks each month. Then, in February, some big donations came through, so we opened applications again. Within one week, we had another 30 families applying, and their stories really hit home.

Every week, our team gets together to discuss progress and share stories. Each one is more touching than the last. Just last week, Sarah shared a story about a mom she spoke to who's really struggling. She started crying while telling her story about living in a hotel, working full-time, paying rent and a mortgage on a burned property while looking for a new place to rent and caring for an elder parent – it's heart-wrenching.

Despite the challenges, the families we're helping are incredibly grateful. Whether it's for gas to get to work, diapers, groceries, school supplies, or birthday gifts, our support is making a real difference in their lives.

The need is still there, though. Nine months on, families are still living in temporary accommodations, still facing financial hurdles. But here's the plan: we're committed to keeping the support flowing. With your help, we can make sure they have everything they need.

Our team is dedicated to this cause, and we'll keep going as long as there are families in need. So, if you're able to make an additional donation, know that it'll go a long way in helping those who could really use a hand.

Thanks for your ongoing support.  Let's keep the spirit of aloha alive and kicking.
Posted in Community
May 2, 2024

Maui Real Estate Advisor ~ Issue 134, April MREA

Aloha, Lahaina Lee here with your Maui real estate advisor report for March 2024. I'm coming to you a little bit late this month because we were on vacation. Where do people from Maui go on vacation you might ask? 

Well, one of our favorite places to go is another tropical island, in this case, we went to the South Pacific and spent time on Maraya and Bebe.

It was great to be there where we connected with some good friends who are also from Lahaina. The water was fun, we had some great food, and enjoyed our friends. But, as Dorothy said, there's no place like home.

And on the Maui front, there is some good news. At a meeting on Tuesday, April 16 there was a Lahaina town update. The good news is that the infrastructure plan is ahead of schedule. We were told that all of the waterlines had water and were pressurized. Not all of the water is potable, so there is still work to be done, but that feels like a great step forward.

We also got an update on the wastewater system and although HECO did not have a representative present, it sounds like they are on or ahead of plans as well. 

It was also announced that a special permitting office for Lahaina will be opened at the end of April An outside contractor is being hired to, hopefully, expedite permits so that people can start building their homes again.

The news was not so good for property owners in the Lahaina historic district or those within an SMA zone. We were hopeful that if someone had a property: a home, a condo complex or commercial building in those districts, that if they were planning on rebuilding exactly what they lost, they would not have to go through the required process. Unfortunately, the representative from the planning department state that both of those processes will be necessary.

Since everyone on the makai side of the highway is in an SMA zone, and my experience with getting an SMA was that it took close to a year to get that through, that could be a major bottleneck and getting Lahainatown starting to rebuild. 

IN the meantime what's happening with real estate on the rest of Maui? Let's look at the numbers. 

In the month of March, we recorded the highest number of sales in over 12 months at 75 homes sold. In fact, that was highest number of sales since November 2022.

With 266 homes currently listed for sale in the Maui MLS, we also have the highest inventory level that we've had in over a year. However, given the current rate of sales that is still only four months of inventory. So, by standard measures, sellers are still firmly in the driver seat when it comes to single-family homes.

What's the reason for rising inventory? It appears to be just normal market activity. There is one new development, Anuhea at Kehalani, bringing some new homes to market, but there aren't a significant number. Also, the median price for new listings in the last 30 days in just under $2 million. The average price is just over 3.5 million.

The median selling price for single-family homes took a pretty significant jump at the first of the year. However, as you can see, they didn't rise in the first quarter. The average selling price seems to be headed back towards $2 million. That could signal a little more activity in the luxury market. 

It is a different story for condos.

After dropping to just 66 sales in September, after the wildfires, sales rose back into the 90s in December, and aside from the dip in February sales, have remained at 90+ sales per month.

Inventory has also been increasing by leaps and bounds. In August of last year, there were only 184 condos for sale. Last month there were 473  condos for sale. At the current rate of sales, we have a perfectly balanced level of inventory at six months. 

Both the median and average sewing prices reported in March are deceiving. A good size condominium complex in Wailea, La Loa, has been closing a number of sales including 12 in March. That doesn't sound like a lot, but it is enough to skew the stats.

Even with that qualification selling prices are generally up and asking prices are following. The median asking price for a condo on Maui is now at $1,150,000 and the average asking price is over $1.7million.

That is this month's snapshot on real estate. We will keep you updated on trends and related stories here on Maui, and of course, we will keep you posted on real estate trends here and the greatest island in the world.

We'll see you next month, and remember, nobody knows real estate on Maui like Aloha Group 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.

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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),  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.  

April 18, 2024

Daily Dose of Vitamin Sea ~ April 18, 2024

Update from Maui

Aloha!

This beautiful, heart-wrenching song from Maui born Lily Meola, features Jake Shimabukuro, Mick Fleetwood, Willie Nelson, Paula Fuga and Lukas Nelson. Take a minute, put down your phone and just listen. You won't regret it. Click here to read more.

Click here to listen.

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