August was a month for increases. Visitor arrivals increased 2.8%. Not only did more visitor choose Maui to vacation, they stayed longer too! Maui is up over 9% for 2013 in visitor spending. From January to August of 2013 a total of $2.5 billion was spent from visitors to Maui. Although fall is expected to show a slow down, 2013 has shown strong growth in the economy of the islands. You can read the entire article via Maui Now here. The Hansen Ohana strives to keep you up to date with the latest news pertaining to the islands. We appreciate your continued support!
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Fall Newsletter
The Hansen Ohana Real Estate Group’s Fall Newsletter
Real Estate Update ~ Upcoming Developments ~ Annual Toy Drive
TOY DRIVE
As always, there is an urgent need for gifts for a lot of less fortunate children. These gifts are exclusively given to children on Maui. Please feel free to call or email us to pick a gift up or drop it off at our Wailea Town Center Office, Building D, Suite 103.
WAILEA’S LATEST!
Andaz celebrated their soft opening. The condos are in the process of completion but it is hard to tell when they will be finished. The ocean front units that will remain under Hotel Ownership appear to be close to completion. There are also some beautiful units that are available to purchase which will also be completed in the near future. The Mid-Century Modern style with Hawaiian accents is an interesting concept. The employees are very friendly and work diligently so guests feel welcome. We enjoyed a lovely dinner at Ka’ana Kitchen on opening weekend.
LATEST REAL ESTATE STATS
Latest figures just released January through August, Year to Date 2013
Residential unit sales increased. There were 660 homes sold which was up 67 units from the same period last year and is an 11% increase YTD. The average sold price was $796,660 which is a 12% increase YTD. The median price was $539,444 which is a 16% increase YTD. Total dollar volume sold was $525,795,298 which is an increase of 24% YTD.
Condo unit sales increased to 896 units, an increase of 48 units equaling an increase of 6% YTD. The average sold price was $544,705, a 25% increase YTD. Median prices were $377,200 which is an increase of 8% YTD. Total Condo dollar volume sold was $488,056,068 a 25% increase YTD.
Overall August sales have remained strong compared to historic levels. One of the strongest indicators is the “days on the market” statistics. Currently, homes are at 107 days, condos are at 94 days and land is at 156 days. Note that these numbers include about 45-90 days of escrow time.
Clint Hansen’s Observations: We are seeing increased instances of multiple offers on competitively priced properties. Many buyers who have watched the market over the past few years are “jumping in” and with little to no inventory in some condo complexes and residential neighborhoods we are experiencing a lot of pent up demand. We have pre-approved and cash buyers with certain criteria waiting for properties to come available in a variety of communities.
Bob’s Hansen’s Summary: In August, condos had a great month. This should make people who own and have already purchased condos happy. The current thinking is that purchasers of condos and homes should have smiles on their faces for at least two to five years. Personally I am hoping that prices only increase moderately over the next 5 or so years so that we don’t witness a bubble like we did in 2007. Historically a sustainable price increase is 5 to 7 percent per year. Although we still have some catching up to do price wise, we may be approaching a sustainable price vs. market condition.
WAILEA DEVELOPMENTS
THE ISLAND COUNTRY MARKET ~ The market is scheduled to be located on the north-east upper side of The Shops. 16,468 square feet will house a market, restaurant and wine bar. Construction is anticipated to start in early 2014 with a projected opening within a year.
WAILEA OLD BLUE ~ The Club House and pro shop will be moving back to its original location by Manoli’s. The current 10,000 square foot buildings which houses Manoli’s, Urgent Care and Snorkel Bobs will include the Pro Shop. Phase two will bring expansion of square footage of the existing buildings. Two tenants have made a commitment to lease (a real estate firm and Juvenal & Co.) with additional space available for other business opportunities. Future phases include the expansion of square footage and the parking lot which shall be determined by the owners at a later date.
PI’ILANI SUITES ~ 200 Room All-Suite Hotel
Located on Wailea Ike Drive, the main entry will be across from Ekolu Place with the secondary entrance from by the Wailea Town Center. This “Wailea Value” hotel is designed to attract families. A pool will be on site and food service will be offering breakfast and evening cocktails. The hotel will be three to four stories and is in the permitting process now. The goal is to start construction next year and complete sometime in 2015.
KEALA O WAILEA
This condo project is located by the Gateway Center and is to be co-developed by A&B and Armstrong Builders. There are ten units in each of the seven buildings. They anticipate starting in mid-2014. Magnificent ocean views with a community center offering a pool and owners lounge are just some of the special features.
SINGLE FAMILY LOTS AT GOLF ESTATES
This new subdivision will be a part of the Wailea Golf Estates just below the current subdivision. They anticipate 16 lots of approximately 14,000 generous sf each, with almost all having golf course frontage. The infrastructure is scheduled to begin in early to mid-2014 and to be completed later the same year. The construction route is planned to be the road that leads to the lower units of Wailea Ekolu. Once the lots are completed this road will be closed to construction traffic and any individual building traffic on the lots will be through the Wailea Golf Estates.
MAKALI’I O WAILEA
This property is owned by Wailea Golf LLC and is planned to be co-developed by Armstrong Builders. It is located across the street and up from the Fairmont Kea Lani. The project is a sharp departure from the typical Wailea look. The look and feel will be mid-century modern with Hawaiian touches. There will be 17 buildings of 4 units each in a townhouse style. Most of the units will have grand ocean views and will be 2 or 3 bedroom homes with a garage. Construction is anticipated to begin toward the end of 2014.
HOKU O WAILEA
This condo project consists of 75 Multi-family units in 15 three-story, five-plex buildings and will be located on the corner of Wailea Alanui and Okolani Drive. This was initially approved in 2009 and the owners, A & B, are awaiting final permits from the County. Construction is approximately 2 years away.
MORE INFORMATION
Asking prices on these new developments have not been determined. The final construction costs must be received by the developers so that a list price can be determined. Besides Wailea’s new developments, there is a project under way in Makena, several in Wailuku, including Phase 8 of Milo Court at Kehalani, and others in varying price ranges. If you like new construction Hokulani Golf Villas Phase 2 may also be of interest to you. For updates on these or any developments, please contact us at dad@MauiRealEstate.NET
On a personal note, 2013 has been a great year to date for The Hansen Ohana. With a combined $50 million dollars in closed and pending sales we have enjoyed assisting so many old and new friends in their purchase or sale of Maui property. We are proud of our combined 70+ years of real estate experience and truly love what we do. As full time Maui residents for over 23 years we have valuable contacts, experience and resources to assist our clients. Additionally, as Exclusive Affiliates of Christie’s International Real Estate our listings not only receive extensive on island promotion, exposure through our cutting edge website and smart phone apps, but also unparalleled worldwide exposure. For questions on the benefits of Christie’s International Real Estate please call us anytime and if you or someone you know is considering buying or selling property on Maui, please call or email us any time. We look forward to hearing from you.
Warmest Aloha,
Bob, Clint and Donna
Bob Hansen, Realtor Broker
Clint Hansen, Realtor Sales
Donna D. Hansen, Realtor Sales
The Hansen Ohana Real Estate Group
Maui Estates International, LLC
Wailea Town Center
161 Wailea Ike Place, Building D, Suite 103
Wailea Hawaii 96753
Going Up!
Visitors arriving on Maui has increased 4.1% so far this year and up 5.8% in July. The average stay for a visitor is almost 8 days, with the average spending for each visitor $199.90. A jump from the same time reported last year. Visitors to Maui spent $360 million in July alone. A total of $2.3 billion for the first 7 months this year. Visitors have spent on average $11 million dollars a day in Maui County.
Visitors have also increased on Lanai (up 10.2%) and Moloka’i (up 5.7%). The Hawaii Tourism Authority contributes the efforts of the visitor industry with the low unemployment rate and strong budget.
To read this article in its entirety, courtesy of Mauinow.com click here. If you or anyone you know is interested in buying or selling property on the islands, call the Hansen Ohana today!
ECONOMIC REPORT FOR THE FIRST HALF OF 2013
As summer unfolds and we look back over the first half of 2013, we all wonder “What’s next?” Interest rates have inched up some causing some buyers who are looking for lower priced homes and condos to either not qualify or be priced out of the market. The investors are generally not hurt by these minor fluctuations in the interest rates.
Overall June’s sales have remained strong compared to historic levels. May’s sales were slightly more, but part of the puzzle is the notable shrinking inventory. With fewer properties available for purchase there are accordingly fewer sales. One of the strongest indicators is the “days on the market” statistics. Currently, homes are at 116 days, condos are at 143 days and land is at 105 days. Note that these numbers include about 45-90 days of escrow time. All this points to higher prices which are reflected by home median prices rising to $615,000 (a 5 year high) and median condo prices have risen to $390,000.
Inventory has declined 16% over the last 12 months in both homes and condos. Bank Owned and Short Sales are becoming scarce with the so-called shadow inventory diminishing and slowly trickling onto the market. Mortgage rates are inching up which may motivate pent-up demand for vacation and retirement homes on Maui. Personally, we continue to see more than 50% of transactions using cash. The market in many parts of the mainland United States has improved tremendously. We all hear stories of 30 or more offers on one property with the final sales price well above the asking price. That has not happened so far on Maui except in a few isolated cases. A stable but improving market is more desirable than an overheated market. So far, so good on Maui.
In a July 12th presentation on Maui, Paul Brewbaker (considered by many to be THE economist of Hawaii) said “We have turned the corner”. He also said that during the first 6 months of 2013 single family home prices on Maui jumped 20 percent. “The values are back now,” Brewbaker said after his presentation. He also said that inventory continues to shrink and “The demand side is coming back.” For the complete article follow the link below.
For complete video of Paul Brewbaker’s economic broadcast (very entertaining) go to :
Click to access Brewbaker_RAM_presentation_July_2013.pdf
We would appreciate and love your letting us know how your real estate market is reacting these days. We’ll share your experiences on our blog (with or without your info ~ up to you).
We are also pleased to report that the Hansens continue to be on the cutting edge of technology with the NEW! iPad and Tablet optimized website available at http://www.mauirealestate.net/tablet/ or find our iPhone and Android Apps @ Hawaii Real Estate App. Our website allows you access to all properties for sale on all of the Hawaiian Islands and continues to highlight our featured listings.
Thank you for your continued support of The Hansen Ohana. If you or someone you know is considering buying or selling property please call or email us for a confidential consultation. Mahalo Nui Loa !
May Stats Are In
More record breaking stats are in for May. Residential sales of 105 homes in May were at a six-year high here in Maui. The median home price for a residential home also increased 22% since last year to $540,000. Condo sales remain steady and strong at 138 units sold. Prices for condos also rose 12% since last year to $381,500. On both Condos and Homes there is less than a 6 month supply on the market. This brings us to a solid Seller’s market. Here is a link to the real estate stats: http://www.mauirealestate.net/All-May2013.pdf
We are again at a time where multiple offers are coming in on well priced properties. If you are a first time home buyer looking to break into the real estate market, now is the time. Low inventory is driving prices and statistics are showing this trend in the market will continue. For sellers, having your property appraised and inspected in advance will encourage offers from buyers. If you’re a buyer, getting pre-approved so your house hunting adventure can be done with the confidence that you know your loan will be funded is strongly encouraged.
The Hansen Ohana strives to meet all of your real estate needs. Contact us today if you or someone you know is looking to buy or sell property here on the islands. We are happy to assist you!
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