This month, I’m going to dive a little deeper into the Maui luxury market. I’ll define what is luxury and that not all “luxury properties” are very luxurious! First, let’s take a quick look at the market for February. As expected this part of the season, we saw an increase in condo sales. The prices are a little down though; it feels that most buyers are bargain hunters. Home sales were slow but predict seasonal increases going into June. We are still in a seller’s market and prices are slowly increasing. Today’s announcement of an interest rate increase by the feds is no surprise and real estate rates have already adjusted so we don’t see a big impact.
Maui Luxury Properties
The classic definition of luxury in the real estate industry is usually defined by the top 10% of sales in a market. In the last year across Maui, that makes our luxury price point $1,340,000. When you look at the 259 sales over the luxury point, the average price is $2,8640,000. That includes condominiums, land and homes.
117 condos – average price $2.388 million
13 pieces of land – average price of $2.026 million
129 homes with average price of $3.380 million
Where are Maui’s Luxury Properties?
When we think of luxury on Maui the areas of Wailea/Makena, Ka’anapali and Kapalua. The chart below pretty much shows that breakout. For people who prefer a more reclusive luxury away from the resort areas, there are some beautiful homes along the North Shore overlooking surf areas and windswept cliffs. The long-timers on Maui often prefer the Upcountry area of Kula with expansive full island views, acreage, cooler temperatures and quiet privacy. And don’t forget Launiupoko with it’s 2 acre lots, fairly new construction, open views and just 5 minutes to Lahaina. (Launiupoko. is one area without it’s own real estate district… basically look at Lahaina over 1 million and most homes not on Front Street are Launiupoko.
Are Maui Luxury Properties Really Luxurious?
Buyers often call and ask for a little shack on the beach. Well I viewed at least one of those that sold last year. It was the smallest home in the luxury category at just 964 sq. ft. and was a cute piece of history (a little nicer than a shack but far from luxury) on Keawakapu beach which spans between Kihei and Wailea. It sold for $8 million.
Many Maui homes are truly luxurious. As with all real estate (and maybe even more so!), you often see the quirks of the previous homeowners. A few thoughts that come to my mind — the huge home where every bathroom was done in DEEP blue granite/marble, the home where every bathroom had an outdoor shower, the wine cellar bigger than the theater and the list goes on.
In looking at only luxury homes on Maui, the median price is $2.1 million. So most are toward the lower end. In the last year we had 22 sales over $5 million with highest sale being $18 million which was a multi-unit sale right on the beach near the airport.
Does luxury mean large? Often yes, however the median square footage of luxury properties is a “not quite spacious luxury” of 2,344 square feet. Remember this includes condos. And luxury often requires some major rehab too!
Does Maui Luxury Mean Buyers Pay Cash?
Many assume that all luxury buyers are cash buyers. The chart below shows that isn’t true. About 58% do pay cash but many get jumbo financing (great rates) and/or do 1031 exchanges (investment properties).
If you are looking for a luxury home in Maui, there are many to choose from. This group is often slower to sell (average days on market is 223) and many of the properties have been on/off the market for years. A great agent will help you look at different areas and the features that are important to you. Knowing the market is key to making sure you get the best pricing advice.
Contact Kathy today – 808-344-0469
Questions or comments? Need help with Buying or Selling or just understanding the market?
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View the Detailed Maui Real Estate Market Reports for February 2017
Click on the report and it will be brought up in a new window.