Aloha and Happy New Year!
We are very grateful for a wonderful 2014 and wish everyone a happy, healthy and prosperous 2015! There has been a lot of activity in the market, phenomenally low interest rates and new loan programs, low inventory levels and plans and progress on some new developments. See below for a quick update on PROJECTS.
In addition to regularly meeting with developers, attending Committee meetings and being actively involved in the Community we also attend presentations by respected economists like Paul Brewbaker. Real Estate prices on Maui increased in the last year almost exactly as predicted by Paul Brewbaker a year ago. Paul is considered by most to be the preeminent economist in Hawaii. Last year he predicted that Maui prices should rise from 7% to 10% in 2014. Sure enough in 2014 the prices of both single family homes and condos both rose in 2014 by 8% and 11% respectively. The number of sales, however, fell by 4% for Homes and 10% condos. To us, the number of sales is less important than steady values. An orderly market, playing catch up to the 2007 crash and a sustainable increase in prices is the best scenario. When we represent a buyer in a property purchase, or buy one ourselves, it feels a lot better when they go up in value.
At $570,000, the median sales price for a single family was the highest it’s been in 5 years. While sales prices rise, the number of short sales and foreclosures decreases. This reduced number of distressed sales is reflective of a healthier real estate market.
One of the more important factors is the Days on Market (DOM) for SOLD units. That number is currently 103 days for Homes, 119 days for Condos, and 137 days for Land. This “Days on Market” figure is only for property sold, not units that have not sold. Units that have not sold may not be priced correctly relative to current market conditions and of course, there are price ranges that are currently “hotter” than others. Many times Sellers are not realistic in their expectations.
The best part of Paul’s prediction is that for the next few years he still expects a 7% to 10% yearly increase in property prices for Maui. So how does all of this effect you? Everyone’s real estate goals are different so it’s important to meet and discuss your personal needs and goals. There are many factors to consider (exchange rates for international clients, interest rates, long and short terms goals, health and family etc) and no one size fits all so please call us to discuss how we can put our 75+ years of combined real estate experience to work for you.
● Ritz Carlton in Kapalua launch prices are predicted to range from $800,000 to $1,500,000.
● Keala O Wailea by the Gateway Center is progressing and is estimated to be coming on the market soon.
● Piilani Suites 200 unit hotel directly by the Wailea Town Center is beginning to pour foundations.
● Makali’i at Wailea 34 condos located across from the Fairmont is in for approvals.
● Makena Resort is moving forward with Maluaka lots available to purchase.
● The Parkways homes in Kahului have sold out. A new phase will be available soon.
● Golf Estates 2, 16 home sites below Golf Estates, is nearing completion and should be ready toward the end of this year.
● Hoku O Wailea, 75 condos located at the corner of Oakalani and Wailea Alanui, is moving very slowly.
● Island Country Market, located at the Shops at Wailea, is coming out of the ground with steel I beams visible from Wailea Alanui.
● Shops at Wailea is planning to have their parking lot controlled with all paid or validated parking.
As always we are happy to answer any questions you have about what is happening in Wailea, Makena and all of Maui, please call or email us any time. We are known for our island wide experience, contacts and resources and pride ourselves in our knowledge experience and integrity. We love to help people realize their real estate goals and love referrals.
Links to detailed info. http://www.ramaui.com/UserFiles/File/Stats/All-December2014.pdf
Enjoy the winter season!
Bob, Donna, Clint and The Hansen Ohana Group
Bob Hansen, Owner and Principal Broker
Clint Hansen, Realtor Broker
Donna D. Hansen, Realtor (S)