At the time of this posting, there are 19 active listings (approximately 10%), with 4 pending sales, and 8 sales since January 1, 2012. The sales have ranged from a low of $410,000 for a one bedroom villa in original condition, to $780,000 for a beautifully upgraded two bedroom villa.

In 2012, 40% of the sales year to date in the Kapalua Resort have occurred at the Golf Villas. In part, this activity may be attributed to a large scale remediation project and assessment that was just approved by the AOAO.

The scope of the much needed remediation work includes, but is not limited to: new roofs, installation of copper gutters, replacement of wood siding, repainting, drainage and landscaping work, and pool cabana and carport repairs. The work is anticipated to be completed in summer of 2014, and assessments are scheduled through to 2015.

The following is the most recent assessment schedule for fiscal year 2013, which began April 1, 2012*:

* The assessment is set for 2012. Assessments are subject to change depending on the scope of work that is needed as individual buildings are completed. When purchasing a Golf Villa, you would have the opportunity to review the latest information as supplied by the Board of Directors.

Please feel free to contact me with any questions or for information regarding the Golf Villas, or any other property in the Kapalua resort.

Photo of the Ritz-Carlton, Kapalua, where we have a new listing: Residential Suites 1221 / 23 a two bedroom, two bath lock off for $985,000 REO.

In particular, we are seeing a majority of this year’s sales activity at the Kapalua Golf Villas.  The Golf Villas were built in 1979 and a much needed remediation project (and assessment) has just begun.  The AOAO is renovating the exteriors of the buildings, with changes not limited to, but including, new roofing, siding, and installation of gutters.  With this type of change, it is not uncommon to see prices fall slightly as inventory increases.  Buyers finding value at the lower prices at the Golf Villas have propelled the market forward, with 8 sales year to date as compared with 7 in all of last year.

The following is an overview of the activity in the past two weeks in the Kapalua real estate market:

NEW LISTINGS:
There were three new listings in Kapalua since my last blog update, ranging from 689,000 for two bedroom Golf Villa to $3,500,000 for a home in Pineapple Hill

CONDOMINIUMS:
Residential Suites at the Ritz-Carlton, Kapalua
1221/23 2B/2B $985,000 REO

Kapalua Golf Villas
23P1,2 2B/2B $689,000

HOMES:
Pineapple Hill
508 Pacific  4B/4.5B  $3,500,000

PENDING SALES
There are currently 7 properties pending sale: 4 Golf Villas, 1 lot and 1 home at the Plantation Estate, and an Ironwoods Villa.

SALES:
As of this posting, there have been 19 sales recorded within the Kapalua Resort:
CONDOMINIUMS:
Kapalua Golf Villas
18P56: 2B/2B  Listed at $559,000, sold at $515,000 REO
18V4: 1B/2B Listed at $575,000, sold at $575,000
12T1: 1B/1.5B Listed at $430,000, sold at $410,000
24P56: 2B/2B Listed at $568,500, sold at $485,000 REO
14P34: 2B/2B Listed at $839,000, sold at $780,000
23V1: 1B/1.5B Listed at $485,000, sold at $425,000
15P7,8: 2B/2B Listed at $539,000, sold at $485,000

Kapalua Ridge Villas
1721: 1B/2B Listed at $620,000, sold at $566,000
921-23:  2B/3B  Listed at $1,100,000, sold at $895,000
2821-23: 2B/3B  Listed at $1,100,000, sold at $1,000,000
815: 1B/2B Listed at $585,000, sold at $560,000
1521: 1B/2B Listed at $649,000, sold at $600,000

Kapalua Bay Villas
26B3-4: 2B/3B listed at $2,490,000, sold at $2,150,000

Kapalua Ironwoods
52: Listed at $2,750,000, sold at $2,450,000
102: Listed at $3,675,000, sold at $3,425,000

Coconut Grove
18: 3B/3.5B sold at $5,000,000  *Not in MLS–Private Sale

HOMES:
Honolua Ridge
231 Kaupalena Place, Phase II: Listed at $2,69,000, sold at $2,760,000 Short Sale

Plantation Estates
201 Plantation Club Drive: 4B/5.5B Listed at $4,300,000, sold at $3,000,000

VACANT LAND:
Honolua Ridge
Lot 1, Phase II: Listed at $1,890,000, sold at $1,600,000

Number of Sales:
2010: 41
2011: 43
2012: 19 YTD
Average Sale Prices:
2010: $1,944,707
2011: $2,013,133
2012:  $1,456,895 YTD
Total Volume:
2010: $79,733,000
2011: $86,563,862
2012:  $27,681,000 YTD

For more information on the Kapalua real estate market, please don’t hesitate to contact me.

Aloha,
Courtney

This April, the Kapalua Resort will host several events ranging from fashion, to beauty, to the many facets of Hawaiian culture:

April 5

Joseph Ribkoff Trunk Show at the Kapalua Logo Shop

The Kapalua Logo Shop will host a Joseph Ribkoff Trunk Show from 3-7 pm.

Enjoy champagne and pupus while viewing the designs of Joseph Ribkoff.

April 6-8:
The Celebration of the Arts:  “Me Ke Aloha…with Aloha to all” at the Ritz-Carlton, Kapalua

The Ritz-Carlton, Kapalua will host the 20th Annual Celebration of the Arts.  This festival showcases the many facets of Hawaiian culture through music, dance, art, demonstrations, and films, and is considered to be amongst the best cultural festivals in the islands.

This weekend festival is hosted by Clifford Nae’ole, who has assembled some of the islands’ best artisans, educators, practitioners, and entertainers participating in a variety of events to bring the spirit of Aloha to all who attend.

Don’t miss some of the special highlights, which include Saturday’s Celebration Lu’au and Show (memorable food and entertainment), After Hours parties (the best of Hawaiian music), and a special Sunday Easter Brunch and egg hunt.

Events are scheduled from 10 am to 5 pm.  For tickets, events schedule, and reservations please call 808-669-6200 and speak with the concierge team.

April 9-14:
Billy Yamaguchi at the Kapalua Spa

Billy Yamaguchi, creator of Feng Shui Beauty concept and celebrity stylist is back in Kapalua fresh off the Hunger Games movie set.

Mr. Yamaguchi will be taking appointments for makeovers and haircuts throughout the week.  Special events include a complimentary seminar explaining the concepts of Feng Shui Beauty, the goal of which is to express a person’s inner power and beauty by connecting their inner power and energy with the outside.

On April 14th, join Billy for a special Pacific Cancer Foundation fundraiser, a Feng Shui Color Party, with an exclusive makeover for 8 lucky participants.  Guests will receive a one-on-one beauty consultation, hair coloring, hair cut, and make up application, followed by an intimate lunch at Pineapple Grill with Billy.   Proceeds will go to the Pacific Cancer Foundation.

Please call the Kapalua Spa at 808-665-8282 to reserve your spot.

Available Inventory

A key metric is analyzing how much of all inventory is available for sale at a given time. With 1,830 condos in Wailea (plus an additional 145 in Makena), this South Maui luxury district certainly has a wide range of properties to satisfy from entry-level buyers ($400K’s) to the uber affluent buyer ($10M+). At the time of this writing, there are 121 units available for sale, representing 6.12% of all Wailea/Makena condos. Please see the chart above to see inventory levels for the Wailea condo market (6.12%) and for examples of individual complexes, including Wailea Beach Villas (7.07%), Wailea Ekahi (4.39%) and Hoolei (10.83%). One could reasonably come up with a hypothesis that a higher percentage of units for sale would equate into higher supply for the same amount of demand, thereby possibly driving sales prices down and putting potential buyers in a position of advantage.

Absorption Rates

Absorption rates, which in essence is a metric of how much time it would take for available inventory to be depleted based on the current sales pace, has long been held to be a key signal of whether the market is moving from a buyer’s market, to a balanced market, to a seller’s market. Based on the previous 12 months, on average 8.16 Wailea condos are sold per month, as such it would take 14.8 months to exhaust the current supply of Wailea/Makena units for sale. One could make the assumption that a longer rate of absorption would make sellers more anxious to negotiate any reasonable offer presented as it could take a significant amount of time to receive another offer. Will it prove to true? Read on.

List to Sales Ratio

Based on the information above, it could be argued that properties with high percentage of units available for sale and a low absorption rate (thereby creating a micro buyer’s market) will have a low list price to sales price ratio. Furthermore, Wailea Ekahi, which has a low percentage of its units currently for sale (4.39%) would presumably have the highest list-to-sale ratio as those units are more rare offerings in the current market. Take a look at the chart below:

Although Wailea Ekahi has a high-to-sales percentage at 93.72% (above the Wailea condo average of 91.93%), to some it may be surprising that Hoolei, which has the highest percentage of units actively for sale (10.83%) and one of the lowest absorption rates (19.5 months of inventory), also has the highest list-to-sales percentage at whooping 95.79%.

The point of this article is simple: Maui real estate is much more complex than a single metric could ever demonstrate. A deep understanding of the local real estate market goes well beyond looking at statistics and requires a thorough analysis at the micro-market level.

Would you like to know more about the what makes the value proposition at Hoolei so strong? Would you like to know more about the Maui luxury real estate market? Contact Island Sotheby’s International Realty for more information about luxury Maui real estate, including but not limited to the areas of Wailea, Makena, Kapalua, Spreckelsville, and Kula.

One of the joys of life on Maui is our charming historical towns–from the oceanfront town of Lahaina to the Upcountry town of Makawao, where I grew up. One of my favorite things to do on a day off is to stroll down Baldwin Avenue and soak up the cool Upcountry air (and stop by Komoda’s bakery for their famous cream puffs, my childhood favorite).

Each Friday, Maui hosts a town party in one four historic towns. The schedule is:

• First Friday–Wailuku (Market Street)
• Second Friday–Lahaina (Front Street)
• Third Friday–Makawao (Baldwin Avenue/Makawao Avenue)
• Fourth Friday–Paia (Baldwin Avenue/Hana Highway)

Upcoming Friday events are:
March 16, 2012
6 pm – 9 pm Makawao celebrates with a “Carnival”–featuring a wide variety of ethnic food offerings, colorful costumes, performers (fire dancers), music, and family activities (face painting, a petting zoo and pony rides!). Shoppers will find special discounts and offers in stores up and down Baldwin and Makawao Avenues. You’ll also find information booths supporting our local non-profit organizations.

March 23, 2012
6 pm – 9 pm, Paia celebrates the upcoming spring season with music, food samples ,and drink specials (check out Milagaro’s for margaritas!). Stop by the Maui Crafts Guild for a reception featuring print maker and ceramicist Michi Itamiat.

For more information and updates on this ongoing series of Town Parties, visit www.MauiFridays.com. You can also follow them on Twitter http://twitter.com/#!/MauiFridays or Facebook at www.facebook.com/MauiFridays

Artwork courtesy of Sarah Howard, www.SarahKHoward.com

With increased visitor arrivals, we have been seeing an increase in the activity in our real estate market.  This holds true for the Kapalua real estate market.  The following is an overview of recent activity:

NEW LISTINGS:
We saw six new listings come to market over the last two weeks, ranging from $500,000 to $10,900,000:

CONDOMINIUMS:

Kapalua Golf Villas

12T56 1B/1B $500,000

Kapalua Bay Villas

19G5 1B/1.5B $1,150,000

31G3-5 2B/3B $1,539,000

HOMES:

Plantation Estates

704 Mokuleia  7B/5.5B  $10,900,000

VACANT LAND:

Honolua Ridge

98 Keoawa  4.28 acres $895,000

110 Keoawa  4.33 acres $1,250,000

PENDING SALES

There are currently 8 properties pending sale: 5 Golf Villas, 2 Ridge Villas, and 1 Bay Villa.

SALES:
As of this posting, there have been 12 sales recorded within the Kapalua Resort:

CONDOMINIUMS:

Kapalua Golf Villas
18P56: 2B/2B  Listed at $559,000, sold at $515,000 REO

18V4: 1B/2B Listed at $575,000, sold at $575,000

12T1: 1B/1.5B Listed at $430,000, sold at $410,000

Kapalua Ridge Villas
1721: 1B/2B Listed at $620,000, sold at $566,000

921-23:  2B/3B  Listed at $1,100,000, sold at $895,000

2821-23: 2B/3B  Listed at $1,100,000, sold at $1,000,000

Kapalua Ironwoods
52: Listed at $2,750,000, sold at $2,450,000

102: Listed at $3,675,000, sold at $3,425,000

Coconut Grove
18: 3B/3.5B Unlisted, private sale not in MLS, sold at $5,000,000

HOMES:

Honolua Ridge
231 Kaupalena Place, Phase II: Listed at $2,69,000, sold at $2,760,000 Short Sale

Plantation Estates
201 Plantation Club Drive: 4B/5.5B Listed at $4,300,000, sold at $3,000,000

VACANT LAND:

Honolua Ridge

Lot 1, Phase II: Listed at $1,890,000, sold at $1,600,000

Number of Sales:

2010: 41

2011: 43

2012: 12 YTD

Average Sale Prices:

2010: $1,944,707

2011: $2,013,133

2012:  $1,849,667 YTD
Total Volume:

2010: $79,733,000

2011: $86,563,862

2012:  $22,196,000 YTD

For more information on the Kapalua real estate market, please don’t hesitate to contact me.

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.

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.

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.

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.