Reduced from $2,775,000 to $2,490,000 is our spectacular Maui North Shore playground, Hale Ho’okipa.  Located in just minutes from Ho’okipa Beach Park within the Haiku Makai subdivision, this beautiful home consists of 4 bedrooms, 6 baths and over 5,000 sq. ft. of interior living space.  Situated on 2 landscaped acres this exceptionally appointed residence is ideal for family, friends and entertaining.  The accessory building is ideal for an assortment of ocean toys. For details of this beautiful North Shore home, visit: HaleHookipa.com

If Upcountry Kula is a better fit for your personality, perhaps Hoku Ululani – Star of the Heavenly Grove will tug at your heart strings.  The list price of this irreplaceable Kula home has been reduced from $2.9 million to $2.65 million.  Once the home of Hawaiian royalty (Princess Abigail Kapiolani Kawananakoa (1903 – 1961)) the current owners have meticulously restored the property well beyond its former glory.  This 3.6 acre estate is comprised of 5 buildings, meandering gardens, waterfalls, a grove of 50 avocado and 25 citrus trees and spectacular unobstructed views.  For further information regarding this exceptional property, visit: Kulahome.com

The prices reductions reflect both of our Sellers realizing the sensitivity to the market conditions for luxury estate homes in Upcountry and the North Shore of Maui.

Although the real estate market on a national level has taken a severe beating over the past several years, in a article in The Wall Street Journal yesterday announced that 74% of Americans who participated in a recent poll assert that owning their own home is one of the most important things in their lives and consider home ownership a significant part of the American Dream.   The poll was taken by Lake Research Partners for the National Association of Home Builders and presented Wednesday, February 08, 2012, at the International Builders Show. One third of those polled believed that housing and the real estate market was one of the best investments they could make for themselves.  Above real estate housing were retirement accounts such as an IRA and 401K.  More details can be found on The Wall Street Journal.

On a local level, we continue to see improvement in our market.  An increased level of buyer confidence is evident from both from residents and returning visitors to Maui with the number of sales occurring around our Island.  If you have about Maui real estate, give us a call.  We’d be happy to share our knowledge and guidance.

RESIDENTIAL:  There were 79 home sales for the month of December. The median home price dropped from $440,000 in November to $411,000 in December. While the average sale price in December soared to $916,863 from November’s average of $547,000. The rise is a results of a significant number of luxury homes and Maui oceanfront homes that changed hands that month.   Of the 79 closed sales, 50 homes, or 63.3% closed under $500,000. 17 properties (21%) closed between $500,000 and $1,000,000; 15% of Maui homes closed over a million.

The high sale occurred within the gated community known as Keauhou at Makena.  This beautifully appointed home situated on 3.069 acres offers expansive views of the Makena coastline, Molokini and Kaho’olawe.  Located directly across the street from Palauea Beach, this magnificent home is comprised of nearly 7,000 square feet of interior living area with 6 bedrooms, 6.5 baths.  The sale price recorded at $15,000,000.

LAND: For land transactions during May, there were 8 closings.  Average days on the market: 471, median: 211 days.

CONDOMINIUMS: Condo sales in December diminished to 89 properties.  195/125 was the average and median days on the market.  The average condo price came in at $349,500 and the median at $304,000.  Over 66% of all the condo sales closed under $500,000.  December’s top condominium sale occurred on the West side of Maui at Honua Kai – Konea Tower.  This 2^nd floor Ka’anapali oceanfront condominium closed at $2,050,000.

Currently, there are 2,171 properties currently listed for sale (non-commercial) through our local MLS system throughout the County of Maui.  Just 9% are listed as distressed properties. The interesting part of this picture is that in December, 45% of the closed transactions (residential, condo and vacant land) were distressed sales.  The disparity between active distressed listings to distressed sales reveals how competitive this sector of market can be for buyers.  If you are interested in purchasing a short-sale or REO, be prepared to act quickly.  Many of these properties, specifically the bank-owned (REO’s) have multiple offers presented to the bank.  The end result is that the bank or financial institution has moved into the driving seat, forcing Buyers to come forward with their best offer upfront. In 2011, 49.4% of all the bank-owned properties closed at or above their list or asking price.  We encourage you to get your finances in order and present your best offer with a pre-approval letter from the lender of your choice.

Click here to the December 2011 and year end statistics for Maui Real Estate compiled by the Realtors Association of Maui.

• Seller holds an active Hawaii real estate license.

KONA WEATHER BLOWN AWAY BY TRADE WINDS

Showing Maui real estate can be challenging when the winds blow in from the South, or Kona direction.  Views of the neighboring islands and West Maui Mountains are significantly diminished from the smoke or “vog” that blows in from Kilauea Volcano on the Big Island of Hawai’i.  Kilauea has been active for the past 29 years.

This past week was the perfect example how nature affects real estate sales.  Photo shoots of view properties are put on hold while we await the haze to clear again.  While showing property, I heard myself saying, “On a clear day, the Islands of Kaho’olawe, Lanai and Molokai and the West Maui Mountains are located there, over here and there.”

Kona weather can remain around Maui County and O’ahu for two days to two weeks, but eventually our typical trade wind weather pattern returns.  Yesterday, the vog covered our island.  This morning I shot this photo of the West Maui Mountains from Baldwin Avenue between Makawao and Paia Town.  Once again the trade winds are back!  It’s time to call the photographer.

At the peak of the market (2005), the total dollar volume of sales rose to $2.76 billion reflecting 3,849 closed sales.  For 2011, the dollar volume reached $1.346 billion, which is less than half the amount realized in 2005.  In addition, the number of closed sales in 2011 at 2,183 is 56.7% off the high set in 2005.   It’s a bit uncanny given lending rates are hovering at 4%.  However, financial institutions continue to be cautious in their lending practices leaving many who wish to purchase Maui property sitting on the sidelines.

The historical median of cash transactions for Maui County is 22%.  Whether this is a healthier figure in a more stabilized market has yet to be determined.

Our data also indicates that the higher the price tag for Maui real estate, the more likely the transaction will trade hands with cash.  Whereas, 47% of sales at $500,000 or less closed with cash, 60% paid cash for a property between 1 million to 2 million; 74% were cash sales between 2 and 5 million.  100% of the sales over 10 million were paid in cash.

Some other interesting statistics for 2011 reveal that 67.5% of all the sales closed at $500,000 or less.  In addition 89.5% of all the closed transactions recorded at a $1 million or lower, leaving just 10.5% of the sales for 2011 over $1 million.  Compare these figures to the current breakdown of available Maui properties for sale currently listed below.  

Whereas 67% of Maui sales in 2011 are at $500,000 or less, currently 41% of the Maui properties for sale are actively within this price bracket, resulting in an absorption rate of approximately 6 months.  Also as the price point of Maui real estate rises, the number days on the market also increases.

Many residents and visitors visualize excessive price tags for ownership of Maui property, the reality is that the bulk of our real estate sold today is below the $500,000 price point.

• Source:  Paragon MLS – Realtors Association of Maui.  Information is deemed reliable, but not guaranteed.

We’ve had a number of Sellers asking questions about the 3.8% tax on real estate that begins next year.  Don’t panic!  Starting in 2013, it’s true; there is a 3.8% federal tax that goes into effect to help pay for the Health Reform Act.  The 3.8% tax applies to investment income realized as a gain.  The inkling of truth is that the sale of real estate recognized as a gain on the net sales proceeds is not exempt.  Thus, real estate and other forms of investment income may be subject to the 3.8% tax beginning in 2013.

The tax does not apply to everyone.   However, if all or a portion of your income is derived from the profits earn from real estate and your income exceeds $200,000, than you may be paying an additional 3.8% tax on your income above $200,000.

The National Association of Realtors (NAR) has done an excellent job of taking this tax measure apart and breaking it down into layman’s terms.    Please feel free to download 3.8% TAX on Real Estate.  Perhaps as a result, you will sleep better tonight.

LONG TERM RENTALS IN DEMAND

The long term rental market on Maui has tightened up over the last year.  As a result we’ve noticed rent rates are increasing.  We’ve had several requests from Maui Realtors, new professionals and other individuals about the possibility of renting one of our Maui existing properties currently listed for sale.  Many potential renters have requested to be kept in the know about any rentals coming available.    We recently sold a newer 3 bedroom, 2.5 bath home situated along the golf course in the Pukalani, Upcountry Maui.  This home 1,900 sq. ft. home on a 10,000 sq.ft. parcel rented within a week of listing it on Craig’s List and above the asking rent.

The demand for long term rentals has risen as a result of the fallout of short sales, foreclosures, but also from sectors of the market who:  1) either feel the Maui real estate values will fall further;  2) those who would like to purchase a home but cannot due to income or lending constraints; 3) new residents to our island who wish to rent for 6 months to a year prior and obtain a better sense of  Maui prior to committing to a home purchase.   Add all these together and it puts a demand on the long term rental market.  We are not specialists in the long term rental market and refer our clients to our Island Sotheby’s Rental Department.  However based on our pulse of the market, we sense that rents on Maui have inched up by 10% conservatively in 2011.  Rental agents in the business feel the rental market has stabilized and demand varies depending on the quality of the home or condo.  We’ll keep you posted as time goes on.

If you are considering selling Maui real estate, whether it’s a home, condo or land, we suggest you consult with your Realtor® several months in advance to prepare your property for the market.  The consultation will involve a tour of your home. Taking time to make your home more appealing to today’s buyers and to elevate it above competing properties will work to your advantage.  Looking at your home from a buyer’s perspective is one of the many services that an Island Sotheby’s International Realty professional provides before a property goes on the market. Your REALTOR® will work with you to create a customized “to do” list and timeframe, providing practical tips and connections to trusted local service providers.

A fresh coat of paint on the front door, adding potted ferns or flowering plants and depersonalizing a home will broaden its appeal.  Your home will also photograph more beautifully for its use on the Internet and in print media such as magazines and flyers.  It’s important to begin your marketing by taking the right and basic steps first.

Preparation and Projects

Interior of your home:

• Check to see that all systems (heating, ventilation, electrical, plumbing) and fixtures are in good working order.
• Repair sticking doors and windows. Replace hardware as needed.
• Check all light bulbs and fans are working properly.
• Address safety hazards such as loose hand rails and steps.
• Arrange and remove furniture to maximize space and showcase architectural features.
• Clean and organize closets, garage storage spaces and the pantry.
• Make sure your home is clean. Wash windows, walls and woodwork, or add  a fresh coat of paint if needed.
• Have the carpets cleaned
• Remove any odors caused by strong foods and smoke.

Exterior of your home:

• Give your home “curb appeal” to draw out interest from Buyers.
• Spruce up your entryway to make it more inviting. Paint your front door.  Decorate the entry and lanai areas with flowering potted plants to add color.
• Fertilize your grass a month prior to actively marketing your home.
• Trim and edge your lawn.
• Groom bushes and trees.
• Pick up debris. Store toys and lawn equipment out of site.  Keep garden hoses rolled up neatly.
• Inspect your roof, fences, gates, gutters, downspouts and sprinkler system to insure they are in good working order.
• Fix/replace broken windows and torn screens as well as cracked driveways and walkways.
• Consider power washing or painting your house if necessary.
• Consider hiring a certified home inspector to remove surprises later when you are under-contract with a Buyer.
• Consult your Realtor before making any capital improvements to enhance salability of your home.
• For land, consider marking the boundary corners in advance to make the area visible to buyers. In addition, mow tall grass on a portion of the land to allow prospective buyers access to tour the property on foot or by vehicle.

Staging For Photography and Open House

• Enhance the main entry and lanai area with colorful potted plants and ferns.
• De-clutter and de-personalize your home.  Remember you want the buyers to view your home and not your personal items.
• Place fresh flowers on the dining room table.
• Add a colorful bowl of fruit to the kitchen.
• Remove table top appliances from the kitchen counters.
• Remove tooth brushes and shampoo items from the bathroom and shower.

Today we live in a world where over 80% of buyers and potential Sellers search and view comparable properties through the Internet.  We suggest you invite us to your home, condominium or land at least two months prior to placing it in the Multiple Listing Service and ask for our advice to improve its appearance and saleability.

Kula Kai is one of Maui’s favorite Upcountry Maui neighborhoods.  Back in the early 1970’s a group of local developers subdivided 60 acres of pastureland into 135 home sites, each consisting of 1/3rd of an acre.  Kula Kai is located approximately 2,500 feet above sea level on the foothills of Haleakala. Homeowners love their neighborhood and swear it has some of the best year-round weather on Maui.  Some Kula residents will go a step beyond and claim it has the best weather on the planet!

There are many great attributes to living within the Kula Kai community.  First, the terrain is gently sloped offering optimal mountain and ocean views for the home sites. Second, developed 40 years ago, many of the trees and landscaping are mature, bestowing character, shade and privacy to the surrounding homes.  The streets of Kula Kai meander throughout the neighborhood and provide a challenging exercise path for residents. While Ka Drive will drive up your heart rate, the side streets of Mano, Kau, Mauka and Manu are somewhat level and are perfect for catching ones breathe.   A drive through the neighborhood during the early morning or evening hours and you’ll find many residents out for their aerobic workout.

Kula Kai is considered part of middle Kula.  At this elevation you’ll find the morning hours and nights cool and pleasant.  Temperatures will drop down into the 50’s -70’s, while days are typically clear and sunny with temperatures warming up into the mid 70’s and 80’s.  Located on the leeward side of Haleakala, the Kula District is protected from strong trade winds.  Annual rainfall ranges from 15 to 25 inches.

Lastly, Kula Kai is about a 10 to 12 minute drive to Pukalani with Long’s Drugs, Pukalani Superette, Foodland and the local banks.   Kahului Airport, Costco and heart of Kahului Town are all generally 20 to 30 minutes away.

Looking for a home in Upcountry Maui?  Be sure to include 37 Manu Street in Kula Kai on your shopping list.

If you’d like a tour of this Kula home or would like more information about Kula real estate for sale, give us a call, or contact us, we’d be glad to assist and share what we know.

Need to know more about us?  Please call us, or feel free to read our testimonials.

We wish all of our viewers a very inspiring, healthy and wondrous New Year.  Vincent and I continually feel blessed to call Maui our home.  It’s an added reminder when visitors recognize what we often take for granted.

Just the other day while stand-up surfing, I met a gal from Michigan who was here on island visiting her brother over the holidays.  We chatted a bit about her current and past visits to Maui and her brother moving here in 1993 to work at the college.  As we conversed, she said, “You live on the nicest place on earth!”    Her statement took me back a bit.  I replied, “Really, no place is perfect”.  She replied, “It’s pretty darn close!  The people are so friendly, the weather is so agreeable, the landscape is absolutely stunning.”  I didn’t have my business card to hand her out in the water, but I’d say she was sold on Maui.

Although our real estate values have dropped significantly from the peak in 2006, Maui remains a very desirable place to live and visit.  In reviewing the overall Maui real estate market for 2011, we’ve had a year that indicates mixed reviews and subtle hints of improvement.

Although the total dollar volume of sales for 2011 dropped 4.8% from 2010, the number of sales transactions improved 4.3% from the previous year.

The median sales price of all sales for 2011 amounted to $370,000 and is a return to the median price between the years 2003 and 2004.  While the average price at $618,325 is a return to 2004-2005 values.  Bear in mind these figures combine all sales, inclusive of land, condos and residential homes.

The number of days on the market improved dramatically, declining 23%, (2011: 217 days;  2010: 281 days and 2009: 289 days) revealing an indication that many Sellers are coming to terms with market conditions.Sales in the distressed market surged 8% in 2011 from the previous year.  The number of short sales remained even at 12%.  REO’s (bank owned real estate) aka, foreclosures on Maui increased from 18% to 26%.  As a result the sales in the distressed market sector grew from 30% in 2010 to 38% in 2012.

Maui’s residential real estate sales reveal some interesting numbers at the close of 2011. The number of home sales improved again over 2010 by 10%.  In 2010 Maui home sales increased 16% from 2009.  The interesting part of the picture is that gap between the median price and average price seems to be growing wider apart.  In 2011 the spread grew to 45%, the widest margin since the Realtors Association of Maui’s online MLS record keeping began in 1994. In 2011, we had a phenomenal number of Maui oceanfront home sales.  The highest sale for a single family home closed at $27 million!  This Makena oceanfront estate sold back in 2007 for $19.2 million.

On the other end, the low sector of the market is on par with values in 1995.  While the average Maui home price increased in 2011 and 2010, the median price has continued a downward trend each year from 2006.  At the end of 2011, the median home price in Maui County fell to $433,500, a -5.8% drop from $460,000 in 2010. The average Maui home price rose to $789,099, a 5.9% increase from 2010 at $745,367.

Clearly, these are unusual times in our market and a mixed bag of values.  Maui’s oceanfront properties and luxury real estate are in demand in addition to our market priced under $500,000.  Maui’s real estate market appears to be moving into more favorable conditions between Seller’s coming to terms with market conditions and Buyer confidence improving.  I feel it’s going to be a favorable year!  Now where can I order waterproof business cards?

The real estate figures noted above cover all the islands within the County of Maui and includes the islands of Lana’i and Moloka’i.   Property values will vary significantly island to island, district to district and within the various neighborhoods.

If you would like more information regarding our statistics, or have questions about our market, please feel free to contact us.  We’d be happy to assist and answer your questions.

• All data is compiled from Paragon MLS for the Realtors Association of Maui and is deemed reliable and accurate.

Pukalani Club House Restaurant located in Upcountry Maui has taken the breakfast meal up a notch with their “Loco Moco Challenge”.  Eat everything set down in front of you within one hour and you win the free meal and:

• A $25 gift certificate to Pukalani Club House.
• Your name on the plague of winners.
• Your photo on their website.
• A Loco Moco Challenge T-shirt.
• Best of all bragging rights.

The caveat is that the serving at Pukalani Club House is a mega sized serving which  includes a rice pot or 6 cups of white rice, 6 hamburger patties, a pint of gravy, 6 eggs, and a cup of macaroni salad.  The entire meal is nearly six pounds of food!  If you can’t finish the meal in one hour, your charge or penalty for not completing the meal and challenge is $35.

I watched these two young men fail to complete the task the other day and saw their disappointment.  Our waiter stated that 41 diners have taken the challenge and so far only 2 have completed the meal in an hour.

If you’d like to participate in the Loco Moco Challenge, drive on up to Upcountry Maui and visit the Pukalani Club House Restaurant.  I suggest the Fried Rice dish at about a 6th of the size.

Psst!  Ho’okipa, North Shore Maui and windsurfing enthusiast!  If quality construction and attention to detail are on your holiday shopping list for a home, don’t forget to consider 50 Apuwai Street, also known as Hale Ho’okipa.  In an effort to enhance all the fine attributes of this beautiful luxury Maui home, we created the website: HaleHookipa.com.  Click the link for your private tour.

Located 20 to 30 minutes from Kahului and less than 10 minutes away from Ho’okipa Beach Park, this 2 acre estate is found in the neighborhood subdivision known as Haiku Makai.  A drive on the Hana Highway will take you through Paia Town, Ku’au and Ho’okipa, round the bend of Maliko Gulch and then take your first right into Haiku Town.  Head up the mountain and you’ll approach the Haiku Makai subdivision on the right hand side of the road.

This 28 lot agricultural zoned subdivision was first sold by A&B Properties, Inc. back in 1997-1998.  Original prices ranged from $165,000 to $215,000 depending on the view. Each vacant parcel is comprised of a minimum lot size of two acres or larger.  The restrictive covenants within Haiku Makai are very basic, allowing individual flexibility.  The restrictions fall back to County zoning requirements.  There is no active homeowners association.  All the roads are public, utilities are underground and water is supplied by the County of Maui. The residents of Haiku Makai love the North Shore, the variety of weather, ample rainfall, natural air-conditioning, open and rural feel and the close proximity to surf and wind.  Today, there are less than a handful of vacant parcels remaining and have been replaced with an array of quality constructed homes.   If you would like a personal tour of this luxury home for sale in Haiku, Maui, visit the website, or give us a call.

For you seekers of North Shore Maui oceanfront property, Island Sotheby’s International Realty has listed 473 Laulea Place, Paia.  Situated on 3.46 acres with 124 feet of ocean frontage, this is THE most exceptional oceanfront property to come available in years.  This finely crafted Spreckelsville home feels more like a private park than a residence.  The structure is more apt to be considered a work of art than a house combining an elegant arrangement of local stonework and sculptured wood.  Stroll the lush grounds watered by its own private well and you’ll discover a lagoon pool with a sandy beach entry, water features, rock outcroppings and a portion of the pool that is ideal for lap swimming.  The entry is down a long curved driveway allow this home to be invisible from the road, vehicles and pedestrians.  Zoned R-3 (Residential – 10,000 sq. ft. minimum lot size) the potential for subdividing this parcel is apparent, however, an SMA (Special Management Assessment) permit is necessary.