UPDATE
February 2009
Even though it’s not technically “New Year’s”, I feel a Hau’oli Makahiki Hou is only appropriate as we venture into 2009 and all that it will bring. Planning on fitting in a round of golf on our pristine courses soon? Even if you’re not into chasing that little white ball around personally, there are still reasons to appreciate all that Hawaii’s golf industry contributes to our state’s economy … a whopping $1.4 billion annually! According to a recent study golf provides over 30,000 jobs and almost $900 million in wages in Hawaii. To that end West Maui kicked off the year with the Wendy’s Champions Skins Game at the Kaanapali Golf Resort followed by the Mercedes-Benz Championship at the Plantation Course at Kapalua.
Transitioning from the greens to being green lets begin by acknowledging Maui’s ongoing love affair with the Earth. Well our Governor Linda Lingle reached an agreement with Maui Electric Co. and Phoenix Motorcars to test all-electric vehicles and an electric vehicle infrastructure on Maui. She also announced an agreement with the Better Place Co. to bring electric cars and a plug-in network to Hawaii by 2012. And let’s give a nod to Hula Grill Kaanapali. They’ve partnered with 3 local companies on Maui to recycle @ 400 pounds of used kitchen oil a week. The boating company reuses the oil to operate small fishing vessels; the compost company reuses the oil to help break down branches, leaves and food waste; and the dairy farm will reuse the oil to make soaps.
No less than four recent surveys named MAUI as a top travel destination! Readers of Travel Weekly named Hawaii as the best state to visit – and further recognized MAUI as the best destination in Hawaii. A survey conducted by Travel Leaders asked travel agents to list their top-five domestic destinations they’re booking for 2009 – MAUI ranked 3rd. And when it came to the holidays, TripAdvisor travelers picked Hawaii as their TOP holiday dream escape. And last but not least Priceline.com’s annual survey of the top 50 destinations for New Year’s found Maui at #21 on the list.
So while it looks like folks want to get here, is there any good news on the airline front? Yes. While U.S. carriers have been reluctant to add flights between Hawaii and the Mainland, Hawaiian Airlines will add a third daily flight from Las Vegas beginning Feb. 23rd. Now that Koreans no longer need a VISA to visit Hawaii, Korean Air will add 581 more seats a week between Seoul and Honolulu.
And I wind up this section with great news from the Hawaii Convention Center. They expect 2009 to be its best year ever, making it one of the few businesses expecting such an upswing in customers. Meetings and conventions are expected to generate $445 million in state spending, up $63 million from last year. Their advisory board is giving us a boost with their marketing efforts to encourage professional groups to add a Neighbor Island vacation after their Honolulu meeting.
It will come as no surprise to you that rental occupancy as well as real estate sales have been off. Sales of condominiums in Maui County for all of 2008 were down 34%. While the average sold price rose 13% the median sales price was essentially flat. While the number of sales is lagging, the number of days on the market is proving that properties priced right will sell in a reasonable timeframe. “Priced Right” are the key words here. Sellers need to be realistic. Unrealistic Sellers will continue to follow the market down and miss current opportunities.
Prices have declined, interest rates are low, and able buyers are scouting out good deals. I have clients right now that are adding property to their portfolio. No one has a crystal ball to tell when the market hits rock bottom … and buyers waiting for that “bottom” to hit may also miss out on unique properties and opportunities as market forces, qualification requirements and rates may fluctuate.
The changed Real Estate Market has resulted in a thinning out of actual Realtors. The Realtors Association of Maui has lost 7% of its membership. All the more reason to have an experienced knowledgeable Realtor representing you. I have lived on Maui for over 32 years and been a Full Time Realtor for 22 of them. I have included my Year End Wrap Up for the Kaanapali Alii, as well as Year to Year comparisons for West Maui Condominiums in general below. I’d be glad to go over the market figures with you and answer any questions you may have.
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Status |
Unit |
Bed/Bath |
List Price |
Sale Price |
Sale Date |
|
Active |
411 |
1/2 |
$1,300,000 |
|
|
|
Active |
262 |
1/2 |
1,375,000 |
|
|
|
Active |
224 |
1/2 |
1,425,000 |
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|
|
Active |
1-501 |
1/2 |
1,750,000 |
|
|
|
Active |
221 |
1/2 |
1,987,000 |
|
|
|
Active |
2-401 |
1/2 |
2,150,000 |
|
|
|
Active |
113 |
2/2 |
1,850,000 |
|
|
|
Active |
4-205 |
2/2 |
2,395,000 |
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|
|
Active |
1-503 |
2/2 |
2,690,000 |
|
|
|
Active |
1704 |
2/2 |
2,750,000 |
|
|
|
Active |
183 |
2/2 |
3,695,000 |
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|
|
Active |
263 |
2/2 |
5,150,000 |
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|
Sold |
4303 |
1/2 |
$1,650,000 |
$1,650,000 |
5/2/2008 |
|
Sold |
1-701 |
1/2 |
1,795,000 |
1,750,000 |
4/25/2008 |
|
Sold |
4-502 |
1/2 |
1,850,000 |
1,850,000 |
6/17/2008 |
|
Sold |
1-1001 |
1/2 |
2,125,000 |
2,125,000 |
5/1/2008 |
|
Sold |
2906 |
2/2 |
2,100,000 |
1,900,000 |
3/13/2008 |
|
Sold |
3-304 |
2/2 |
2,975,000 |
2,500,000 |
5/8/2008 |
|
Sold |
4-806 |
2/2 |
3,700,000 |
3,500,000 |
5/9/2008 |
The historical rise in home values was the rate of inflation plus 1 percent. But in the last 6 to 10 years, prices began spiking way above inflation. That led to a speculative frenzy and housing prices soon bore no relationship to reality. Now we’re getting back to reality – this is the beginning of the healing. While it’s true that Maui’s sales have slowed and increased inventory has caused prices to slip, it’s equally true that mortgage rates are at historically low levels and that has opened the door for many buyers. Buyer confidence will be an influential factor in 2009. The Federal government is looking for ways to stabilize and stimulate the housing market. Buyers and investors may have an opportunity to take advantage of lower prices and low interest rates. Buyers should be fine in 2009. Sellers with unrealistic price points may regret they missed an opportunity.
Even Jim Cramer, host of “Mad Money” on CNBC has weighed in on this: “This is a once-in-a-lifetime opportunity to buy in a reduced mortgage environment. The Fed has given a green light to investing in real estate.” His advice – “buy a house within the next three months.”
Local (808) 661-2626 Toll-Free (800) 244-2626
email: pru@maui.net web: www.prumaui.com
256 Papalaua Street Lahaina, HI 96761
Again, no one has a crystal ball and therefore cannot make an assured prediction. What I can promise you, is personal service from an experienced Broker who knows the market. I’m available to you 7 days a week, and will work with you to either sell your property, or find good buys to increase your portfolio.
Perhaps you're not interested, or in a position to sell. Perhaps you put your investment dollar into the Kaanapali Alii as a place you could enjoy while you're here, as an income producing rental property to help defray the costs while you're not here. Maui Beachfront Rentals (a branch of Prudential Maui Realtors) has enjoyed its best year ever. I can't tell you how many new referrals we've received from owners looking for more bang for their buck.
| WEST MAUI CONDO YEAR TO DATE SALES | |||||||||||
| Comparing 1/1/08-12/31/08 with 1/1/07-12/31/07 | |||||||||||
| Number of Sales | Average Sales Price | Median Sales Price | |||||||||
| AREA | 2008 | 2007 | % Change | 2008 | 2007 | % Change | 2008 | 2007 | % Change | ||
| Kaanapali | 38 | 56 | -32% | $1,097,737 | $1,365,314 | -20% | $805,000 | $1,124,500 | -28% | ||
| Kapalua | 20 | 34 | -41% | 1,356,425 | 1,630,971 | -17% | 987,500 | 1,256,500 | -21% | ||
| Lahaina | 21 | 75 | -72% | 771,548 | 611,567 | 26% | 455,000 | 529,000 | -14% | ||
| Napili/Kahana | 113 | 165 | -32% | 549,544 | 597,651 | -8% | 525,000 | 550,000 | -5% | ||
| MAUI TOTALS | 788 | 1187 | -34% | 921,063 | 817,514 | 13% | 549,500 | 550,000 | 0% | ||