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!

 

May 14, 2021

Daily Dose of Vitamin Sea ~ May 14, 2021

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

Happy Aloha Friday!

Things are looking good here in the Aloha State! Vaccinations are readily available for anyone over 12 who would like to get one. Navigating the second COVID test at the airport seems to be going fairly smoothly (particularly if you have a wristband and are vaccinated) and we're (maybe!) slowly moving towards not quite as strict mask guidelines. Nothing has changed in Hawaii yet, per Governor Ige, but it is encouraging that the CDC's recommendations for mask wearing are starting to loosen. 

In other news, real estate continues to be bustling on the island. Click on the link if you missed our Maui Real Estate Advisor and the number of visitors slowed down a bit, but seems to be on the rise again. We are grateful for it all, and continue to feel blessed that this is our home!
 
View from the top of the road at Kapalua Airport ~
Lanai to the left (above) and Molokai to the right (below)
 
 
Stay safe and well!
Click here for the latest updates from Maui
Posted in Community, Maui Fun
May 12, 2021

Maui Real Estate Advisor ~ May 2021 Real Estate Statistics

Properties are Going Under Contract Fast and Closing Slow

Quick update: Visitors, Roads, Erosion and Taxes

Aloha! According to a report in the Maui News, visitor arrivals for March, yes, I know it's May, were up over arrivals in March of 2020. I know that sounds like a "duh", but March and April really did feel like pre-pandemic times. And I can't quantify it, but it feels like things are slowing down just a tad in the last several days. Click here for a quick video of Front Street on Friday afternoon. 

There could be a few reasons for that. Typically, we do have a bit of a slowdown in May after Spring Break and before school lets out, if school is even in. By now a lot of visitors have heard about the lack of rental cars and the supply and demand based rental rates. And now, since Maui had a pretty good spike in COVID cases after Spring Break, we have a new second test system. As of May 4, you need to be fully vaccinated and have a negative COVID test to be set free to roam Maui. Otherwise, you get to line up and take a second test, and hope it comes out negative.

In other news, the Maui County Council has proposed an increase in property taxes for short-term rental properties and non-owner occupied residences, AKA, second homes. This time around a tiered rate is being proposed. As I understand it, the Mayor is threatening to veto it and the Realtors Association is fighting it. Stay tuned.

The county is also proposing relocating part of the highway coming into Lahaina. If you haven't been on the road during high tide or big waves, you might not know that we frequently have ocean water splashing up onto the highway. So, moving the road further inland, or mauka, would be a smart move. However, the current plan is to move only 2 short strips about 12 feet inland. It's being called a band-aide.

And, speaking of erosion, an EIS, environment impact study, for replenishing the beach in Kahana has been completed. The plan envisions bringing in sand from the ocean to create a wide sandy beach and installing 7 T-groins to stabilize the beach. The cost could be up to $40 million and would be funded by a group of condos and one family kuleana along that stretch of oceanfront. This should be interesting.

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.

Sales of homes and condos were up again in April. Home sales climbed to 133 which is the highest number of monthly sales I found going in MLS records. Given the current inventory of homes for sale, that is stunning. So, just for fun, I compared the current home market with that of April 2011, ten years ago. Back then we were still recovering from the "great recession". That month there were 87 homes sold...87 compared to 133 now! The median selling price was an even $500,000 and there were 935 homes for sale.

Condo sales also appear to be at or near a record high of 255. The next highest I can find is 2005 with 228 sales. Back in those days there were typically well over 1,000 condos for sale.

How long can Maui sustain this record pace? Read on.

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.

Pending sales were nuts in April. That explains my headline. The market is hot with buyers who are prepared to act quickly to get the property they want.

However, our real estate eco-system, which includes escrow officers, lenders, inspectors, appraisers and all of the real estate services needed to buy and sell real estate from the time a property goes under contract to getting it actually closed is built fro about 450 - 500 in the pipeline at any time. The highest number of pendings I've seen in recent years is 522 in February of 2018.

In early April, pending sales topped 900. That's just about double what the system is built to handle. And those allied service professionals like loan officers, loan underwriters and property inspectors aren't just people that can be hired off the street. Each one of those specialties takes years of training before they are qualified to provide service.

The results are delays in closing. Banks are telling us they need 75 days to fund a condo-tel loan. It is taking weeks to get an appraiser. Property inspection reports are delayed and lenders are telling us they are underwriting as fast as they can. The escrow officers, loan officers, and Realtors are caught in the middle. 

We saw the number of pendings decline in April for homes, condos and land. Could this be the turning point in this hot market or just the calm before the next storm?

Inventory:

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

There is a myth circulating. They myth, as it's being told, is that there is no inventory. There is nothing to buy.

That is absolutely false. If there was nothing to buy, why are we seeing record sales? 

One of my Ninja mentors said it best, "there is inventory on the market, it's just not staying on the market very long."

The combination of rising sales, declining pendings and declining inventory may be another sign of this sizzling market slowing. But if it is slowing, it's slowing very gradually.

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.

If the market is gradually slowing, increasing prices could also be having an impact. The average price for a home on Maui came in just under $2,000,000 in April. The median price was just shy of $1,000,000. Just over 31% of those sales were cash. The median cash sale was $1.6M with the high sale topping out at $2.4 million.

Condos are also on an upward price run. The average condo price is in the mid-$900's and the median is just below $700K. Cash accounted for 41% of condo sales.

Days on Market: (avg-sold listings)

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

Days on market for homes at just 108 days also appears to be a record low indicating that homes are going under contract quickly. Cash purchases can close more quickly as there is no need to wait for appraisals and loans.

The number of days on market for condos is about the only thing in this market that looks normal to me. The 162 number is a nice, normal, boring number. I can't wait to see what happens next month.

_____________________________________________

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.  

May 3, 2021

Daily Dose of Vitamin Sea ~ May 3, 2021

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

Aloha!

It's been a while since we've taken our daily dose of "Vitamin Sea"! Things have been buzzing on Maui, we thought we'd have a little respite after Spring Break, but it appears that is not the case! 

If you're planning to travel here, there is a new travel program rolling out tomorrow (May the 4th be with you), of a secondary COVID test upon arrival to the Kahului airport (trans-Pacific flights). Click here for more information. However, it does look like if you are fully vaccinated (with proof), you can bypass that test, though you will still be required to have proof of the pre-travel test. 

Let us know if we can help you with anything, or if you just want to chat!
 
 
"To walk in nature is to witness a thousand miracles."
~ Marie Davis
 
Stay safe and well!
Click here for the latest updates from Maui
Posted in Community, Maui Fun
April 23, 2021

Daily Dose of Vitamin Sea ~ April 23, 2021

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

Yesterday was Earth Day and we are pretty much convinced that there is no other place on earth we would rather live (and we also know that isn't really what Earth Day is about).

Maui usually (pre-COVID) will have a variety of beach clean-ups throughout the island over the course of the month, unfortunately there aren't as many this year. There are still a few and if you're on island and interested in helping, click here for more information about a Honolua Bay cleanup this Saturday, April 24 (you would be amazed at the things you find!). 

As always, we hope you have a great weekend and would love to hear from you!
 
 
"The earth has music for those who listen."
~ William Shakespeare
 
Stay safe and well!
Click here for the latest updates from Maui
 
Posted in Community, Maui Fun
April 19, 2021

Daily Dose of Vitamin Sea ~ April 19, 2021

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

Sunrise or sunset, it is all pretty spectacular here on Maui. It's not often that we're up for sunrise, but it is well worth it when we are and sunsets are pretty hard to miss!

In case you missed the Maui Real Estate Advisor, click here for the update. We'll let you know a little bit about what's going on on Maui, and what the real estate market is doing. 

We hope you have a great week and we're always here for any questions or concerns!
 
 
 
Stay safe and well!
Click here for the latest updates from Maui
Posted in Community, 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 14, 2021

Daily Dose of Vitamin Sea ~ April 14, 2021

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

Whew, things are still pretty busy around here and sometimes it is nice to just take a break and enjoy the beautiful place we live.

We hope you enjoy a little bit of paradise through our emails and truly wish each of you the very best. As always, we would love to hear from you, so feel free to call, text or email! 
 
 
"To understand the song of life, listen to the melody of wind and ocean and watch the dance of waves and water."
~Debasish Mridha
 
Stay safe and well!
Click here for the latest updates from Maui
Posted in Community, Maui Fun
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