A Look at the Resort Markets as compared with the overall Maui Real Estate Market.

Maui's Resort Markets of Kaanapali, Kapalua, Wailea 

January 1-July 31, 2017 vs. January 1- July 31, 2016

Comparing the YTD sales in the resort markets with the same period in 2016, we are seeing more condo sales in Kapalua and Wailea and Makena, while in Kaanpali, condo sales is down. Inventory is increasing in the condo markets, with the exception of Wailea, which has an absorption rate of just 9.2 months.  Part of the substantial growth in the Kapalua Condominium Market can be attributed to sales at the Montage Residences Kapalua Bay with 3 sales ranging from $3.795-$6.475M (which is the highest condominium sale on record for 2017 on Maui), and Coconut Grove with 3 sales ranging from $4-$5M.  As there are only 24 oceanfront condominium residences at Coconut Grove Kapalua, there was only one sale last year at $5.25M (not recorded in MLS or included in data below) and it's rare to have so many sell in one year.

With the residential market, the Wailea and Makena Home market is showing tremendous growth over the other markets in terms of sales volume and number of sales.  However, it should be noted that Kapalua and Kaanapali have very few oceanfront residential communities--in Kaanapali, there are just 6 beachfront homesites in the Kai Ala Place neighborhood.  Similarly, in Kapalua, there are just five beachfront homesites at Kapalua Place, and then three private oceanfront peninsulas that are a part of the resort.   In Kaanapali the high residential sale this year was $4.7M in Lanikeha, and in Kapalua, it was $3.55M in Pineapple Hill.  Contrast that to Wailea/Makena, where there were 8 sales above 4.7M in Wailea, ranging from $4.75M to $15.5M, with half of those being ocean or beachfront homes in Wailea and Makena.  It is noteworthy that in 2016, none of the residential sales in this same period were oceanfront.

KAANAPALI, KAPALUA, AND WAILEA RESORT REAL ESTATE OVERVIEW:

SALES VOLUME, DAYS ON MARKET AND ABSORPTION RATE (AMOUNT OF AVAILABLE INVENTORY IN MONTHS)

A LOOK AT THE RESORT RESIDENTIAL MARKET

Kaanapali, Kapalua, and Wailea Resort Home Sales:  Average Sales Price

Kaanapali, Kapalua and Wailea Resort Home Sales: Average SP/Sq. Ft. 

A Look at the Resort Condo Market

Kaanapali, Kapalua and Wailea Resort Condo Sales:  Average Sales Price

Kaanapali, Kapalua and Wailea Resort Condo Sales:  Average Sales Price/Sq. Ft.

SALES PRICE TRENDS OVER THE LAST FIVE YEARS: RESORT HOMES AND CONDOS

With such a small data sample resulting in limited data points, sales of luxury homes and condominiums can increase the averages dramatically in resort areas and should be noted. However, in the last five years, we’ve seen the resort real estate market ebb and flow, with average sales prices dropping in 2013 and 2016, and rebounding in 2015 and 2017.  

What does this mean if you’re buying a house or condominium in one of Maui's Resort Communities?

As resort markets, the real estate in Kaanapali, Kapalua and Wailea tend to be second home markets, there is often quite a bit of inventory to choose from.  However, that said, properties in excellent condition (new or remodeled) and with great views and/or locations can move much more quickly than those that are dated, in need of repair, or don't have a view.  

The condominium market can be very appealing to a second home-owner as many allow short term rentals (defined by Maui County as any rentals under 180 days).  Homes require going through a permitting process, which is not guaranteed. Read more about short term rentals of homes and condominiums.

What does this mean if you’re selling a house in or condominium in one of Maui's Resort Communities?

Sellers need to prepare for longer days on market than many mainland US markets.  As most buyers will be looking at it as a part time residence and many don't live on island, we find sales will vary with airline travel, season and other global economic factors.

As you can see from the chart at the top of the page, the resort home sector moves more slowly than that island-wide, with the lowest average absorption rate in months being for Maui homes in general.

Information above is taken from the Realtor's Association of Maui MLS system and is deemed reliable, but should not be