New! Kapalua and West Maui Real Estate Newsletter

Posted on February 16, 2012 by Courtney Brown

The latest edition of my Kapalua and West Maui Real Estate newsletter is now available.

In this issue, you’ll find updates taken from the Kapalua Resort Annual Sales Reports, which illustrate how sales in 2011 compared with prior years for the Resort in general, as well as by property type (Condominiums, Homes, Land), and by each individual neighborhood.

2011 continued the trend of 2010, with a concentration of sales at the low end of each market segment and record high sales. The average sale price for the resort was buoyed by two record high closings at the Plantation Estates at $14,000,000 and $9,600,000, and several closings at the Ritz-Carlton Residences, Kapalua Bay. With these high sales, the average sale prices for condominiums and homes are only down a little over 20% since the peak. Vacant land prices have been hit the hardest, with average sales prices down 57% since the peak. (I’ll be posting a more thorough analysis to my blog in the near future.) This trend seems to be continuing in 2012, where we have had seven sales in the Kapalua Resort to date: 3 ranging from $515,000 to $575,000, 3 ranging from $2,450,000 to $3,245,000 and a Coconut Grove sale recording last week at $5,000,000.

Please don’t hesitate to contact me with questions or for updates on the Maui Real Estate market.

Kapalua Real Estate Market Update: 2012 is off to a great start!

Posted on February 14, 2012 by Courtney Brown

The Kapalua real estate market is moving along with nice momentum considering it is so early in the year. Last year, as of this time, the resort had just two sales for a total dollar volume of $4,583,300. This year, we have had 9 sales, with a total volume of $19,891,000.

So far, the sales in the Kapalua Resort have been concentrated at the low and higher ends of the market, with a low of $515,000 and a high of $5,000,000:

Kapalua Golf Villa 18P56: Listed at $559,000, sold at $515,000
This is a two bedroom, renovated villa on the golf course. REO

Kapalua Ridge Villa 1721: Listed at $62,000, sold at $566,000
This is a one bedroom, ocean view villa in original condition.

Kapalua Golf Villa 18V4: Listed at $575,000, sold at $575,000
This is a renovated, ocean view villa.

Honolua Ridge II, Lot 1: Listed at $1,890,000, sold at $1,600,000
Vacant land. Spectacular views.

Kapalua Ironwoods 52: Listed at $2,750,000, sold at $2,450,000
Oceanfront, two bedroom villa with some renovations.

Honolua Ridge II, 231 Kaupalena Place: Listed at $2,69,000, sold at $2,760,000
This Honolua Ridge home is a 4B/4.5B home located on just under 8 acres with oceanviews. It was a short sale.

Plantation Estates, 201 Plantation Club Drive: Listed at $4,300,000, sold at $3,000,000
This Plantation Estates home is a 4B/5.5B home located on 2.35 acres before the gate, with oceanviews.

Kapalua Ironwoods 102: Listed at $3,675,000, sold at $3,425,000
This is an oceanfront three bedroom villa, renovated.

Coconut Grove 18: Unlisted, private sale not in MLS, sold at $5,000,000
This is an oceanfront three bedroom villa with a den. Located on Kapalua Bay.

The overall resort market in 2010 and 2011 was relatively stable across the board:
Number of Sales:
2010: 41
2011: 43
Average Sale Prices:
2010: $1,944,707
2011: $2,013,133
Total Volume:
2010: $79,733,000
2011: $86,563,862

While the market was relatively stable on the whole, it’s noteworthy that two high sales in the Plantation Estates ($14,000,000 and $9,600,000) elevated both the average sale price and the total dollar volume. Also, properties were on the market longer in 2011 (by 119 days) and sold at a lower percentage of list price (85% vs. 91%).

For more information on the Kapalua real estate market, please view the Annual Kapalua Real Estate Market Reports or contact me.

Kapalua Bay Villas – A Valuation Case Study

Posted on February 6, 2012 by Alex Cortez

With a number metrics showing signs of a recovery in the Maui real estate market, some experts have said that we have scraped the bottom of the market and will be experiencing stabilization (which will hopefully be followed by long-term appreciation). And while on a previous Maui real estate update general trends were analyzed, it is important to note that Maui’s micro-markets are highly segmented and experience different levels of buyer interest, sales volume, and valuation from one another.

As such, let us take a look at one specific property and see how it has fared in the downturn. As a favorite among West Maui visitors, how has Kapalua Bay Villas performed through the cycles of the market? Look at the chart below which shows its ascent of average/median sales prices during the peak of the market to its current position through 2011:

To give it some perspective, in 2011 there were 8 sales at a price per square foot of $745.91. Yet in 2002, 16 sales reflected a price per square foot of $805.54. Few other vacation-rentable, waterfront properties in Hawaii offer this type of opportunity. Does it mean that KBV is reflective of the overall trends in the Maui real estate market? No, but it clearly illustrates that now could prove to be THE time to invest in Kapalua Bay Villas.

A perennial landmark among West Maui visitors, KBV enjoys a well-earned reputation as one of the better values in Hawaii oceanfront properties. Located atop 16 acres of prime West Maui real estate, owners and visitors enjoy exclusive use of three pools, tennis courts, a recreation area, and one of the most enviable locations in the world with unobstructed views of the Pacific. Potential buyers can find the perfect size among the one hundred and forty one KBV units which range in size from 1 bedroom / 1 bathroom (1,006 square feet) all the way to incredibly spacious 2 bedroom / 3 bathroom (1,547 square feet). With floor plans built to maximize ocean views, for many the favorite part of the day is lounging on the lanai while seeing whales breach. And of course, Kapalua boasts some of the world’s best golf courses, D.T. Fleming Beach, the world-renown Kapalua Bay Spa, and a plethora of dining establishments where chefs master their culinary skills.

For buyers interested in pursuing investment opportunities on Maui, it is critically important to be represented by a qualified real estate professional knowledgeable in the area. Contact Island Sotheby’s International Realty for more information and to explore available opportunities.

Maui Real Estate Market Update

Posted on January 6, 2012 by Alex Cortez

As high season commences in Maui and visitors flock to enjoy what the Valley Isle has to offer, the most common question becomes: “So how is the market?”. With many sectors of the market being segmented and experiencing significantly different levels of sales activity and valuation, it would be overly simplistic to paint broad statements across the marketplace. But as always, looking at data can show trends on which to base educated opinions.

For example, the Maui real estate market has seen a significant reduction in the amount of properties listed. In 2010, there were a total of 1,809 single family residences (SFR) listed, whereas 2011 decreased by 16.6% to 1,527. And the condo inventory saw an even more drastic decline, from 2,362 in 2010 to 1,821 in 2011, a decrease of almost 23%. The Wailea/Makena market experienced a similar decline, with SFR’s decreasing from 77 to 62 and condos going from 253 listings to 201.

Maui Real Estate Inventory Comparison

In addition, volume of sales is a good metric to gauge how well the market is absorbing inventory. In 2010, there were 812 sales of SFR’s, increasing in 2011 to 896. Condominium sales remained virtually flat, from 1,148 in 2010 to 1,152 the following year. The Wailea/Makena district remained flat, with 2010 having 28 SFR’s and 104 condos sold, compared to 2011′s 29 SFR’s and 103 condominium sales.

Furthermore, one of the key aspects of analyzing the real estate market is seeing the average and median sales prices. In 2010, SFR average sales price was $745,367 with a median of $460K, compared to $788,115 average and $432,250 median in 2011. Condominiums show a decrease from an average of $647,582 and median of $377,500 in 2010 to $486,212 and $310K, respectively, in 2011. The Wailea and Makena market experienced marked improvements, with 2010′s $3.796M average and $1.699M median for SFR’s increasing in 2011 to $4.146M average and $2.1M median; condos remained somewhat flat with 2010′s $1.525M average and $852K median comparing to 2011′s $1.548M average and $900K median. However, as a caveat, it is important to note that average/median sales price are not altogether reflective of declining or increasing values, as they are more indicative of the type of properties selling and can be swayed by a handful of sales (such as the Honua Kai effect and the record-breaking sales in the past 2 years).

Lastly, for many potential buyers, ‘Foreclosures’ and ‘Short Sales’ are the buzz words of the day, as typically they present particularly strong values in current market conditions. Many experts predicted that Hawaii’s Act 48, enacted in May 2011, would have a significant impact on the amount of REO’s that came on the market, as the bulk would now go through the longer, more costly judicial foreclosure process. The theory was that now that it was more expensive and it would take longer to judicially foreclose on a property, lienholders would now be more open to negotiating on short sales. However, the numbers tell a different story (at least so far). In 2010, there were 259 single-family residence REO’s listed and 266 condos, but REO’s rose in SFR listings to 291 and remained relatively steady in the condo market, at 250. Interestingly enough, new Short Sales came on the market at a much slower pace: In 2010 there were 277 SFR and 304 condo short sales newly listed, but 2011 short sale new listings decreased in SFR’s to 221 (21% less) and a shocking 198 condos (a decrease of 35%).

Maui REO’s (Foreclosures/Bank-Owned) and Short Sales Comparison

The Maui real estate market, long known to be a long-term equity market, still presents some excellent opportunities for buyers, but the guidance of an experienced Realtor with specialized expertise in the subject area is critical in a successful real estate transaction. Contact a member of Island Sotheby’s International Realty to discuss your real estate objectives.

Tax Exemption Deadline Approaches

Posted on November 16, 2011 by Victoria Cheromcka

An important deadline looms for those who purchased Maui real estate this year – filing the intended use of your new real estate at the Real Property Tax Office must be done by 12/30/11.

If your new Maui property will serve as your primary residence, you may file the Claim for Home Exemption form and benefit from among the lowest property taxes in the United States.

For the 2011 tax year, home owners paid $2.50 per thousand in assessed value with a $300,000 exemption deduction from from the assessed value. The tax rates for next year have not been set by Maui County Council yet, but there is no doubt that they will be significantly lower than the basic residential rate currently at $5.55 per thousand of assessed value with no exemption.

To get an idea of the savings let’s compare a property assessed at $500,000. For the current fiscal year of 2011, an owner occupant paid $500 for 2011 taxes while the same home without this exemption and tax rate was subject to $2775 in taxes. That is a gigantic difference. So take advantage of the huge savings available to owner occupants – it’s one of the only true bargains on Maui. Well that and trash pick up…

The Real Property Tax Division is located at 70 E Kaahumanu Ave – in the Maui Mall on the Safeway side. This is one of the most helpful and friendly departments I have experienced – they actually like to help us!

Phone 270-7297

Coming soon…an explanation of condo classifications.

Useful Links:
Download Home Exemption Claim Form
Download Condo Use Declaration Form
Download Maui County Real Property Tax rates

Renewable Energy Maui

Posted on November 16, 2011 by Valerie Lounsbury

It’s the time of year when many people are turning up their thermostats and putting another log on the fire to keep warm. While curling up in front of your fireplace and getting cozy, you may be dreaming of real estate in Hawaii as you watch the flames dance. Perhaps it’s Florida real estate, or Las Vegas real estate that consumes your fantasy, but if it’s property in Maui and an mls search for homes on Maui, or ocean-front codos for sale, or ocean-front homes for sale, be sure to include Maui real estate in your search. There are currently hundreds of real estate listings and many real estate companies from which to choose. Maui real estate may be more affordable than you think! When compared to international real estate, real estate in Hawaii offers many opportunities to own property in paradise…and although property on Maui offers the environment you are probably envisioning –palm trees swaying in the wind and the sound of waves gently lulling you to sleep–the environment is a concern for Maui.

Where Do We Get Our Energy? The Hawaiian Islands depend on imported oil for energy–but, the source of the oil is largely from the U.S., Indonesia, and Australia, and lesser amounts imported from Vietnam, China, Malaysia, Papua New Guinea, and Canada. The oil produced is either refined in Oahu from crude oil or imported already refined. Coal is imported to Oahu’s coal-fired power plant. Petroleum is delivered to power plants by sea and road. We do not have a pipeline.

The State of Hawaii has mandated a conversion to 40% renewable energy and and increase of 30% in efficiency by 2030. Here’s how we are going green with energy: Renewable Energy Projects

Hawaii consists of 8 islands, located in the middle of the Pacific Ocean, approx.2,000 miles from the mainland USA. We are a key testing ground for renewable energy. Specific Projects and Testing on Maui: Our grid is limited, and a pilot ‘smart grid’ project is currently in development for a neighborhood in West Maui known as ‘Maui Meadows’. The project would put 200 high-tech energy monitors in homes, complete with transmission lines and power stations. The project is through Maui Electric Company and the US Dept. of Energy. Japan’s Hitachi has plans to invest on Maui for their own smart-grid testing. This project will be focused on the area of Kihei homes and businesses.

Wind There is an inter-island wind project. Wind farms are located on Maui, Oahu, and the Big Island of Hawaii. Current debate is a ‘Big Wind Project’ that would see windmills on Molokai and Lanai transmit power to Oahu.

Geothermal Using the heat from the volcano ‘Kilauea’ on the Big Island of Hawaii, magma is converted to steam which drives turbines that generate electricity.

Solar and Photovaltaic Solar City is Hawaii’s first full service solar power provider. It offers Oahu residents affordable solar options, as well as provides service to businesses and non-profit organizations on Oahu, Maui, Kauai, Lanai, and the Big Island of Hawaii.

Xterra’s World Championship race in Kapalua, Maui a huge success

Posted on November 16, 2011 by Raphael Wellerstein

After 15 years of the World Championship of off road triathlon competing in Makena, South Maui, the course and race moved to a new location in the beautiful mountains and ocean off Kapalua, West Maui. The Ritz Carlton Kapalua did a phenomenal job hosting the venue which included approximately 675 athletes from around the World. The Aloha from everyone in Kapalua was apparent in welcoming this inaugural event to the area and am sure that the race has found a new home for many years to come.

Kapalua is known for its World class golf resorts, beaches and outdoor activities. Thus, it was only fitting for a premiere race such as the Xterra to want to come to this new venue.

The Xterra World Championship triathlon is made up of a 1 mile ocean swim starting at Flemming’s beach, a 19 mile mountain bike ride through former pineapple fields and the West Maui mountains, and a 6.2 mile trail run that runs through forests and fruit groves on its way back to the finish area of Flemming’s beach and the lawn of the Ritz Carlton.

The weekend was full of fun events for the entire family as Saturday there was a 5k, 10k, 1k and .5k for kids and adults of all abilities and age. The Triathlon was held on Sunday and started at 9:00am.

The event is spectator friendly as its transition areas and finish line are open to all to cheer on their family and friends participating in the event.

One thing is certain, once you see in person an Xterra World Championship event on Maui, you will want to know how to sign up for the next race in your area.

For more information on Xterra events, go to www.xterraplanet.com

Blog written by Raphael Wellerstein ( Realtor-Broker for ISIR)

Raphael is an active Realtor on Maui and has competed in 3 Xterra World Championships .

Educating Your Child in Upcountry Maui

Posted on November 16, 2011 by Mino McLean

For those of you doing an MLS search on Maui with the hope of relocating to this beautiful island – here are some reasons I think Upcountry Maui is the place to raise your family. Whether you are inclined toward private education or public schools, Upcountry is the place to be. In the public school sector, Kula Elementary and Pukalani Elementary ranked top 21 statewide. Haiku Elementary School, known for their extensive arts programs and active Parent Teacher Association ranked 60^thStatewide in 2008 (to see the full list of public school rankings – Honolulu Magazine’s 2008 Public School Rankings). King Kekaulike High School is the only public high school in Upcountry and ranked 39 statewide in 2011 (Public High School Rankings). If private schools are an option, Upcountry Maui hosts diverse opportunities. Choices include the arts based Waldorf curriculum of Haleakala Waldorf School located in Kula on the historic Kealahou Campus, the Montessori School of Maui on Baldwin Avenue just below the cowboy town of Makawao, and Carden Academy in Pukalani. For grades 6 – 12, Seabury Hall stands out as Maui’s most prestigious college preparatory school sited on the beautiful campus just above Makawao town.

“First Friday” in Wailuku, Maui Expanding!

Posted on November 4, 2011 by Megan Spalding

If you told me a year ago that the happening place on a Friday night was going to be on Market Street in Wailuku I would have doubted your definition of “happening”. Maui is a small community; most who enjoy nights out on the town know the places to be on each night of the week. Starting four years ago the event “First Friday” was small but things have changed in 2011! The event is held in Wailuku; traditionally Maui’s business district with the streets clearing out after each work day around 5 pm. Well First Friday just placed Wailuku back on the map! Now one of Maui’s most popular events held each first Friday of the month draws nearly 3,000 people for a night of fun on the town. With many local vendors selling products, artisans, a beer garden, restaurants and food vendors, and live music filling the street this is the place to be. Wailuku’s First Friday event has not only brought the town back to life after 5 pm but it has really benefited Maui’s small business community as well as giving residents and tourists a community event that Maui never had before. It is nice to see our small community coming together and having something for everyone to enjoy.

With Wailuku’s “First Friday” success the event expanded to Paia, Maui with “Fourth Friday”. Although a smaller event Paia’s Fourth Friday seems to be gaining popularity quickly. Paia, located on Maui’s North Shore, offers a different scene than Wailuku. Maui’s North Shore is known for its great windsurfing and surfing beaches like Ho’okipa Beach Park and there are also great white sand beaches like Baldwin Beach Park all within minutes to the quaint little beach town, Paia. Paia, Maui offers an array of fine specialty shops, boutiques, surf shops, antique stores, bakeries, restaurants, and even an old fashioned tattoo parlor. Maui’s Northshore is also home to the world famed Mama’s Fish House, one of my favorite places for a special meal featuring some of Hawaii’s freshest fish! I’m excited to see the growth of Fourth Friday and the positive affluence it has on our small little beach town of Paia.

In hopes of the same success the County of Maui just announced in October 2011 their intentions on again expanding the Friday night events to include Lahaina and Makawao. The events will help our local businesses and provide an event for the community to enjoy weekly. I look forward to the attending the different “Maui Friday Town Parties” as each town involved has something different to offer. The Maui town party schedule starting November 4th will be as follows: Wailuku – First Friday, Lahaina – Second Friday, Makawao – Third Friday, Paia – Fourth Friday. A website will be launched by December 1^st, 2011 where anyone can check out a roster of what will be going on in each town. Hope to see you there!