February 16th, 2007
The real estate market in South Maui has generally been very, very slow since the first of the year. But the real story is more complex than that.. Top-tier oceanfront homes and new oceanfront condominiums are still being heavily sought. Four large beachfront homes have closed so far this year for a total of nearly $50 million and per square foot averages of over $2500.. New oceanfront condominium projects like Wailea Beach Villas and Maluaka have obtained very good receptions. Lower-end homes in Wailea have been relatively busy with seven in escrow thus far this year. Those are the bright spots. Condominium sales in Wailea and Makena in established complexes have been very, very slow. Less than ten condominiums have gone into escrow this year, approximately half of last year's numbers. Inventory is over 100 units for sale. That represents 12 months of sales at 2006's sales rate and considerably more at the sales rate thus far this year. We are seeing an increasing number of price reductions in Wailea. But the news is worse in Kihei. There is simply way too much inventory for the sales pace. Units in escrow now have frequently accepted prices below recent comparable sales. We suspect that trend may continue. Wish we had better news.
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February 14th, 2007
All property asset classes other than trophy oceanfront homes are struggling in what has become a buyer's market. But trophy oceanfront homes continue to receive substantial attention and remain highly prized. Even in the oceanfront condominium market, the trophies are going first. In Wailea Beach Villas, three Villa units have sold this year and at the new Maluaka development in Makena, the two separate condominiums that look and live like homes are both spoken for. They are priced at $14 million.
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February 14th, 2007
3010 South Kihei Road sits on the north end of world famous Keawakapu Beach and boasts two bedrooms and over 2100 square feet of interior living space. The white stucco exterior, pool, spa and sunny lanais fit in perfectly with the breathtaking location. This home is listed for $12.9 million.
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February 14th, 2007
Federal Reserve Chairman Ben Bernanke testified before Congress today. Here are some high points in his prepared remarks:
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February 12th, 2007
There has been a good deal of scuttlebutt regarding a possible "credit crunch" being on its way. It is way to soon to say that is happening, but with several sub-prime lenders facing financial trouble, many lenders are tightening their requirements for mortgages. At this point, much of the focus is on the stated income segment of the market. We'll see if it stays there. Should credit standards be materially tightened, we are likely to see the impact first in the lower end of the market.
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February 9th, 2007
It is a trophy hunting market! The very top end of the market is on fire. The "me too" properties are not getting much action. Now we realize that the concept of a "me too" oceanfront home on Maui's glorious coastline is an oxymoron, but we hope you understand our point. The premier properties are the focus while properties similar to several others available are being treated in a more haphazard manner buyers. With fifty oceanfront properties now for sale buyers believe they have the upper hand in the marketplace. We will be featuring two new properties over the weekend so check in, they are both gems!
February 9th, 2007
Well we all knew it was coming and it was announced today. Local developer Everett Dowling, Trinity Investments of Honolulu and Morgan Stanley are buying the Makena Resort from Seibu Group of Japan. The purchase includes the Maui Prince Hotel, the two Makena golf courses and 1317 acres of vacant land. Dowling is already building the Maluaka condominiums near the Prince and was the developer of One Palauea Bay among other local properties.
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February 8th, 2007
Things keep changing quickly in this market. The Rennaissance Hotel will be operating unit June of 2007 then will be demolished. In its place will be the Wailea Beach Resort. Though the St. Regis has bowed out, Barry Sternlicht will be heading this project. Approximately 100 one-bedroom units will begin at $2 million and 90 or so larger units will run from $3-$7 million. The developer will begin taking names at any time and we can get you access. Nobody has an "exclusive." Let us know quickly on this one.
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February 8th, 2007
In today's Wall Street Journal, a story outlines how the combination of declining prices, prepayment penalties and tighter credit standards are catching some owners in a trap:
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February 6th, 2007
In today's Honolulu Advertiser, the story reads that Oahu's single family home median sale price in January was down 2.4% from January 2006. By comparison, Maui's single family home numbers, according to the Realtors Association of Maui, were down 9% from January a year ago. This data can only be seen to be the roughest sort of approximation. Sales in Wailuku and Kahului represented 43% of all home sales this January, where they represented only 37% last January. More expensive locations like Maui Meadows had no sales this January and five last January. Finally, Wailea's numbers would claim that median sale price is down 74% from a year ago. 74%!!! Of course it isn't true. Those statistics represent the closing of pre-construction sales on Residential Condominiums like Kai Malu and Kanani Wailea at prices set two years ago. They aren't even single family homes for crying out loud! One must really scrub the data to get the true story and understanding the mix of sales is essential to the analysis.
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