Maui Economic Forecast 3rd Quarter 2019

Maui Economic Forecast Q3 2019

The following analysis of select Maui real estate markets is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

ECONOMIC OVERVIEW

The State of Hawaii saw employment grow at an annual rate of 1.1%, with 6,000 jobs added over the past 12 months. In September, the state’s unemployment rate was 2.7%, marginally higher than the 2.6% rate of a year ago.

On the island of Maui, employment continues to contract, with a year-over-year drop of 2.8%. I would note that employment growth has been negative for the past 21 months. Even given the lack of new jobs, the island’s unemployment rate was still impressive, coming in at 2.5%, up from 2.4% a year ago.

HOME SALES

  • In the third quarter of 2019, 578 homes sold, an increase of 2.1% compared to the third quarter of 2018. Sales were up 0.9% compared to the second quarter of this year.
  • Not all markets saw a drop in sales. There were notable increases in the Up Country and Westside markets compared the third quarter of 2018.
  • The rise in sales came as inventory levels dropped 13.7%.
  • Pending home sales were down 5% from the second quarter of 2019, suggesting that fourth- quarter closings may disappoint.

HOME PRICES

  • The average home price in the region dropped 0.4% from last year to $889,694 but was up 0.7% compared to the second quarter of this year.
  • Affordability remains a significant issue. As I discussed in the second quarter Gardner Report, the significant drop in interest rates this year has failed to stimulate sales, which is now affecting MAUI home prices.
  • Price changes by market were interesting: all but one market saw modest declines, but there was a massive 240% increase in the North Shore market. This increase was due to home sales in September when prices averaged $3.53 million. This is not necessarily uncommon in very small markets, where a few high-priced sales can create very significant swings in the average.
  • I don’t expect to see a turnaround through the balance of the year but do expect there to be modest price growth in 2020.

ANNUAL CHANGE IN HOME SALE PRICES page3image63863616 Q3-2018 TO Q3-2019

DAYS ON MARKET

  • The average number of days it took to sell a home on Maui dropped nine days compared to the third quarter of 2018.
  • In the third quarter, it took an average of 71 days to sell a home. Homes in the Central market sold at the fastest pace. It is taking the longest time to sell in the Up Country market.
  • The amount of time it took to sell a home dropped in all markets other than the North Shore market area.
  • The length of time it takes to sell homes on Maui will likely trend slightly lower for the balance of the year.

 

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. For the third quarter of 2019, I have moved the needle 57 a little more in favor of home sellers. Inventory remains tight and, although we have seen a modest drop in 63 home prices, well-priced and well-positioned homes are still selling relatively quickly.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K. In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

THE GARDNER REPORT | WINDERMERE REAL ESTATE

Q3 2019 | MAUI, HAWAII

There are so many Reasons Why The Beach and Maui are Good for You!

Hawaii has something for everybody, investment, vacation and/or leisure.

If you’re curious about Maui Real Estate, reach out! Let’s get your toes in the sand.

Aloha, Erica

 

Posted on November 20, 2019 at 2:15 am
Erica Haleakala | Category: Maui

I Love to Paddle Canoe #mauiliving

One of my favorite pastimes since relocating to Maui almost 10 years ago is actually the State Sport – paddling in a 6 man outrigger canoe.  There’s nothing like greeting the sunrise from the water at the dawn of a new day. I have met so many friends and developed an extended family or “ohana” while playing on the beach in the summertime.  I give my time to my canoe club Lae’ula o Kai on the Board of Directors, and I feel supported by a community of professionals and participants with a common interest.  From the kupuna (elders) to the keiki (children), it enriches your lives to interact on a recreational level.  There are so many Reasons Maui and the beach are good for You.

This article posted in the Ka’hiau – community segment of The Maui News talks about my passion for paddling canoe and how you can get involved.

Practices begin early in the year and get more intense during springtime in preparation for the summer regatta season.  Get it touch if you want to participate!  They place you by division so you will always be amongst others at your age and skill level.

You know they say life expectancy is great in the islands, and I think we can attribute that to a more active lifestyle (in our earlier and later years), and a more relaxed pace and lifestyle.  I relocated from the Los Angeles market almost 10 years ago and can help others considering Relocating to Maui.  I look forward to connecting with my clients and introducing them to Maui’s best neighborhoods.

There’s something for everybody in Hawaii.  If you’re considering a change, reach out!

Life is short, let’s get your toes in the sand.

 

Posted on November 20, 2019 at 12:06 am
Erica Haleakala | Category: Maui, Maui Beaches, Moving to Maui | Tagged , , , , ,

7 Reasons Maui and the Beach are Good for You! #mauiliving

One of the reasons I love living on Maui is a daily stop to unwind at the Pacific Ocean.  Did you realize that there is substantial scientific evidence stating that the beach has significant health benefits?  The natural inclination to inhale deeply as you step on the beach is actually an automatic response to the quality of the air.  Aside from the anticipated “rest and relaxation”, here’s a quick read on 7 benefits of a day at the beach!

  1. Good for your Body

Vitamin D is good for your bones, healthier teeth, and a stronger immune system.  The meditative state it brings us is known to lower stress and blood pressure, as it supports your immune system and overall well-being.

  1.  Good for your Skin

The ocean water is full of minerals and natural exfoliants. Exfoliate on the sand and dip in the saltwater to detoxify with the natural antiseptic, using its qualities to cleanse your pores and skin.

  1. Good for your Peace of Mind

The vast ocean, expansive horizon, and beauty of the surroundings can actually make you appreciate nature. The off-shore breezes and sense of grounding from the sand put you in better touch with spirit and consciousness.

  1. Good for your Mood

The color blue has been discovered by an overwhelming amount of people to associate with calm and peace.  The physical sensation of our toes in warm sand causes people to relax.  The noises — coupled with the visuals — activate your parasympathetic nervous system, which is responsible for slowing us down and allowing us to disconnect and feel more engaged. (Not to mention the limited cell service and hopes that it encourages us to PUT DOWN OUR PHONES.)

courtesy of MedicalNewsToday.com

  1. Good for a Better Nights’ Sleep

A perfect remedy for insomnia, while engaging in a day of play, our skin is absorbing magnesium via the saltwater, and the essential mineral calms both the nervous and muscular systems and has been linked to helping us sleep better.

Magnesium is the eighth-most abundant mineral on earth and the third most abundant in seawater. More importantly, it is the fourth most abundant mineral in the human body and it is necessary for over 300 reactions within the body.

Magnesium isn’t just abundant in the body, but vitally important too. As this article explains:

“Every single cell in the human body demands adequate magnesium to function, or it will perish. Strong bones and teeth, balanced hormones, a healthy nervous and cardiovascular system, well-functioning detoxification pathways and much more depend upon cellular magnesium sufficiency. Soft tissue containing the highest concentrations of magnesium in the body include the brain and the heart—two organs that produce a large amount of electrical activity, and which can be especially vulnerable to magnesium insufficiency.”

  1. Good for your Physical Being

Then there’s the obvious… take a swim, walk on the sand or play with the kids while reaping the physical benefits of playing at the beach. The gentle resistance of water (and the vast ocean world below) make it perfect terrain for adventure and easier on those with arthritis or injury.

    7.  Good for your Financial Portfolio

Owning a home at the beach, particularly Hawaii can be a lucrative investment. History has proven that in a real estate “shift”, the 2nd home a vacation rental market can be shielded by the ability to rent it out for passive income. Not to mention, we’ve seen a 4% increase year-over-year in our property values.

Since the beginning of time, doctors have been “prescribing” vacation trips and time off to reduce stress, anxiety, depression, arthritis and more.  So the next time you’re feeling like a recharge, hit the BEACH! It’s just what the Doctor ordered.

Curious about a lifestyle change? A Maui investment?  Reach out, let’s get your toes in the sand.

Posted on November 6, 2019 at 11:59 pm
Erica Haleakala | Category: Maui, Maui Beaches, Maui Investment, Moving to Maui | Tagged , , , , ,

Rare Retreat Investment Opportunity in Maui Real Estate

Pu’uhonua Estate    –   300 Kepa Road, Kula, Hawaii

A Private Estate Compound on 16.47 private acres on the slopes of Haleakala in Upcountry Maui.

  • 5,374 square feet,     5 bedrooms +  4.5 bathroom main house built in 1926
  • 1,832 square feet,     2 bedrooms +  2 bathroom cottage built in the late 1970’s
  •  500+ square feet,     1 bedroom   +  1 bathroom cottage
  • Garage with Studio apartment above

Recently Listed for $6,900,000

An elegant estate property tucked away at the end of a lane in Upcountry Maui where the climate is mild and the views are spectacular. The sweeping entry driveway is edged in glorious jacaranda trees with their vibrant purple blooms. Built in 1926, this grand estate is steeped in Maui history and has been the site of many wonderful island gatherings. The tranquil estate includes 16 acres of beautiful upcountry land, 8 of which are manicured and planted with gardens of protea, day lilies, azaleas, fruit bearing trees, exotic palms, a Japanese garden and rows of orchid greenhouses.

Walk along the tree lined paths from the 5,000+ sq.ft. main home as you step back into time with a paneled library, formal living and dining rooms, butlers’ pantry and grand staircase that leads up to the upper floors with period fireplace and chandelier. This is the ultimate restorationists dream…

Next stop is the 1 bedroom, 1 bath cottage, with a free standing garage building and studio apt above, then down the drive to the 1,832 sq. ft. 1970’s home with vaulted ceilings and wood floors at the bottom of the manicured lawn. Walk past the protea beds and lush Hawaiian gardens up to another house with the garage building at the edge of the entry with a 3 bedroom, 1 bath apartment located above.

This historic residence is going to require some modernization, but over 11,000 square feet of total living space in an ideal location presents an exceptional value. An ideal setting for a private Bed and Breakfast, or a Treatment / Rehabilitation Center. 

Introducing You to Upcountry Maui

Locals know to escape the heat, head to the rolling hills and expansive pasture land of Kula, and the quaint communities beyond of Ulupalakua and Keokea. Kula means “open country”, and this loosely designated area that sits between 1000 feet to 8000 feet elevation, is known as the “breadbasket” of Maui. The “farm to table” phenomenon has catapulted many gardens and farms into creating some outstanding farm tours and tasting opportunities of their locally made products. Known for its tropical gardens, lavender, protea, sweet Maui onions, goat cheese, coffee, carnations and orchid for leis, cattle, and Kula is known for generations of old farms, cowboys, and artists.

Relaxed and slow-paced, the regions farming and ranching history and shear isolation, with no direct public road connecting it to South Maui, helps to maintain the quiet vibe we know and love as Kula. This is the perfect location for someone looking for privacy and elegance to recover in serenity.  With amazing views of the ocean below and a cool breeze, this part of your Maui stay will be a welcome reprieve from the busy tourism hubs of Kihei and Wailea below.

We’ve seen celebrities like Oprah Winfrey, Clint Eastwood and Steven Tyler become a part of the Maui community – a quick flight to L.A. – but secluded from the fast-paced tinseltown.

Masaru “Pundy” Yokouchi and the History of the Storybook Estate

His influential role in politics, combined with luck and astuteness (not to mention TIMING…) in real estate investing and developing, coupled with a reputation for a particularly fair and generous way of treating others, Yokouchi was one of the most sought-after and best-connected people in Hawaii in the Democratic years.

Since as far back as the mid-1960’s, he was at the center around which power gravitated on Maui. Every major politician and businessman on the island stopped by his office, teed off with him on the links or shared aloha in the community. Officials and community leaders describe him as “incredible guy,” “generous and humble person,” “gracious gentleman,” “great man” and “Maui’s last hero.” He never graduated from college, missed fighting in the war and spent nearly two decades as a baker before he hit it big in real estate. We look around today and see a plethora of realtors, but back in Pundy’s day, the idea of getting rich buying and selling Maui land was novel.

In 1960, Pundy got his real estate license and opened Valley Isle Realty and within just seven years, the office members held some heavy positions in both community and politics. Things began happening for Pundy very fast; in 1970 Yokouchi began buying and selling large tracts of land making a lot of money – both on and off the record. By 1977, Pundy and his wife had expanded their portfolio and were living in this 16-acre spread in Kula, after selling their old, modest Wailuku house.

Maui looks the way it does today because of Masaru Yokouchi Lahaina Town, Ka`anapali and Makena all owe their development—and to a considerable extent, their controversy—to Yokouchi. To speak of him without acknowledging his role in these developments is to dishonor the man and his achievements.

The president of Valley Isle Realty, Kaanapali Kai Inc. and his own foundation, also is chairman of the Maui Arts & Cultural Center,” Masaru “Pundy” Yokouchi died at the age of 81. Articled fled the press full of details about Yokouchi’s standing as Maui’s greatest patron of the arts. He served for 12 years as chairman of the state Foundation on Culture and the Arts and raised $32 million to get the MACC built. His influence, generosity and fundraising were so prodigious that the MACC—which he chaired from its 1994 construction to his death—would never have been built without him.

These stories illustrate the variety and complexity of the world in which Pundy did business. He’s contributed to the make-up of Maui as a whole and a figure to be remembered.

Big Opportunities in Investing in Specialized Rehabilitation and Addiction Treatment Centers

Modern Rehabilitation Centers have been reinvented into to private experiences with individualized care to treat mental and substance abuse.  Consider places like Cliffside Malibu, or Monarch Shores in Orange County, California. Consider a premier destination for alcohol rehab and drug addiction treatment and luxury rehabilitation on Maui. With the opiod crisis and mental health on top of mind, this climate and the need for expanded access and luxury care creates opportunity for investors. A private estate where people can come – privately – to get well.

Building Calm into Your Day by Harvard.edu

Maui is a wealthy beach community but it’s also a relaxing and serene hub for nature lovers, adventurers, and soul searchers. The magnificent landscape of mighty Mt. Haleakala crushed against the shoreline and the breathtaking Hawaiian sunsets are just some of many elements that make the natural beauty of Maui something one doesn’t easily forget. In a sense, Maui is the ideal location for luxury rehab centers.

The time to turn a blind eye to an ever-growing problem is diminishing

State governments aren’t paying to build more methadone clinics and there’s little money available in the non-profit sector for them either. Still, the number of programs has nearly doubled in the last 10 years, largely thanks to private investment, which is a positive development. A detox setting or a rehab program has a much wider stream of potential where revenue, can be covered by insurance, and people are willing to pay for it if they have the resources to pay for it to get better.  The real questions are about occupancy rates, insurance reimbursement and unlimited potential as the future demand for detox and treatment is inevitable.

With big private equity money moving into the drug rehab space  –  they can afford to purchase larger facilities. Larger campus type rehab facilities with economies of scale; a kitchen and crew, a groundskeeper, an executive director, and etc. If the healthcare system is heading into single payer or “in network” then the out of network PPO policies (which are lucrative) will be harder to land. It’s predicted that the larger drug rehabs will have an easier time of transitioning to an in-network type of an environment because they will have the economies of scale.  Take a look at this article from Modern Healthcare.com about the incline in investments in this sector just over the past year.

Specialized Treatments, on-site care and staff dedicated to the well-being of their clients with amenities that could include:

  • Luxurious bed and bathroom accommodations
  • The option for private rooms and private bathrooms
  • Five-star, farm-to-table dining
  • Holistic therapies such as yoga, massage, and acupuncture
  • Sports such as tennis and basketball courts
  • Art therapies such as writing, painting and reflecting
  • Picturesque views and serene surroundings
  • Top-notch service catering to all comforts
  • Gyms, pools, and tropical gardens

A perfect palette to realize a long-term substantial investment. It’s going to take some cash to overhaul the space, but the owners are motivated and this is a one-of-a-kind legacy property in a dynamic location.

Give me a call and we can discuss how to make it yours.

A L O H A

Posted on October 15, 2019 at 1:30 am
Erica Haleakala | Category: Maui, Maui Economics, Maui Investment, Maui Real Estate Reports, Maui Treatment Center, Moving to Maui | Tagged , , , , , , , , , , , , , , , , , ,

Will a Recession Affect the Maui Real Estate Market?

How Will the Next Recession Affect the Housing Market… 

Given the current media buzz of an impending recession, many Americans are fearing the worst and believe a downturn in the real estate market is inevitable. Take a look at the graph below from Keeping Current Matters.

It’s important to note that of the last five recessions in U.S. history, three of them saw increases. Two of those three saw prices appreciate faster than the historical average, and the massive down turn was as a result of loose ethics and loan practices.

Graph showing the housing market in the last 5 recessions

Recession does not equal a housing crisis

 

What Exactly is a Recession

According to Websters Dictionary, a recession means a time where the economy dips for a period of 6 months. Considering that we’re in the longest running economic recovery, it’s no surprise that we’re in for a breather. The Maui marketplace is still robust and active with consistent visitors looking to scoop up great properties and the inventory is low – so it’s still busy and still fast paced for those looking to buy.

How Will Maui Be Affected?… 

Saying anything is recession-proof is a tough statement to make, but any time you have scarcity in a market, whatever the market is, it sets up your investment for success. Purchasing in a location with limited supply is key to making sure your vacation home investment doesn’t depreciate dramatically in a recession. The rental income opportunity can also provide some insulation from market downturns, and there are other factors, too, that help make certain types of vacation homes less risky investments. Check out the most recent short term rentals in Wailea here.

For the best locations in Hawaii, like the Maui beachfront, the dip in property values at the last turn was only 10% to 12%, the reason being the barrier to entry—the ability to get anything built—is unbelievably tough. It isn’t overbuilt, and people recognized the value here. Selecting the location of your vacation home wisely may not protect you entirely from seeing a drop in value during a recession, but it could mean that the decrease you see is much smaller than it would be elsewhere. Also consider whether a second home will be a long-term investment, and perhaps even someday become your primary residence or legacy. Our listings at Mahana Estates are legacy homes where families are seeing their dreams built before their eyes.  I encourage you to reach out and ask questions on how we can paint this picture for you.

Places like Hawaii, Cancun and Mallorca don’t go through seasonal ups and downs. There are low and high seasons, but people are always visiting. People buy a second home and eventually envision living there, so in that sense it’s recession proof. Even in a recession, there are people that still have money, and they’re looking for very specific types of houses, and are very location-driven. As we approach winter, we expect more inventory to come one as usual and we look forward to seeing our friends who return year after year.  If you’re curious about a Maui investment, reach out, let’s get your toes in the sand. Aloha! 

Posted on October 4, 2019 at 8:36 pm
Erica Haleakala | Category: Maui, Maui Development, Maui Economics, Maui Real Estate Reports, Moving to Maui, Short Term Rentals | Tagged , , , , , , ,

Understanding Wailea Golf Membership

Understanding Wailea Golf Club Membership can be tricky. As projects were developed and plans were originally being set into place, different programs were approached and devised with the Wailea Community Association. Those qualifying for Wailea Golf Membership have no particular rhyme or reason why, it just “is what it is”.  Read below for a clarification on which properties qualify for Wailea Golf Membership or Owner Rates.

WAILEA PROPERTIES THAT QUALIFY FOR GOLF MEMBERSHIP:

Ekahi     |     Ekolu     |      Elua     |     Grand Champions Villas     |     Wailea Kai     |      Wailea Kialoa     |     The Palms at Wailea     |     Wailea Point     |     Wailea Fairway Estates     |     Wailea Golf Estates     |     Wailea Golf Vistas     |     Wailea Highlands

NOT ELIGIBLE FOR MEMBERSHIP, BUT QUALIFY FOR PROPERTY OWNER RATE:

Fairway Villas     |      Hoolei at The Grand Wailea     |     Papali Wailea      |      Wailea Pualani Estates

NOT ELIGIBLE FOR MEMBERSHIP OR PROPERTY OWNER RATE

Maluhia     |     Wailea Beach Villas     |     Kai Malu     |       Kanani Wailea

Check out these links for more information and applications on Wailea Golf Membership and benefits. For more details and to schedule a tee time, contact Wailea Golf at 808-875-7450.

Wailea Golf Membership Application 2018

Wailea Golf Property Owner App 2018


The Gold Course – Referred to as ‘ the thinking mans course”, this one is tougher requiring a more strategic approach. and less scenic than its neighboring comrades. At 7,078-yards and created by Robert Trent Jones Jr. this course received accolades from Golf  Digest, Golf Magazine, Conde Naste Traveler – just to name a few. Strategy and finesse are important to playing the Gold well, and the course’s intriguing risk-reward choices makes it possible to use every club in your bag.This par-3 beauty has golfers teeing off toward an unbeatable view of the ocean and little Molokini, a crescent shaped islet and one of Maui’s most popular snorkeling spots. Check out more details on the Wailea Gold Golf Course

 

The Emerald Course – At 6.825 yards, the Emerald Golf Course is the Wailea Blue courses immediate neighbor to the South. Enjoy picturesque over-the-top views for as far as the eye can see.  Carpet like fairways, tropical foliage and the fresh breezes ofHawaiian air. This course is known to be ideal for the recreational golfer, rather than the one vying for exact precision and difficulty. Golf for WomenMagazine has coined the Wailea Golf Club a Top Fairways Award for the country’s most women-friendly golf clubs, an honor that has been acknowledged seven times. With 4 to 6 per boxes on every hole, this course is no cakewalk and still geared to cater to any skill level.  Comments say that this course is “Challenging enough, certainly not punishing”.  More details on the Wailea Emerald Golf Course

The Blue Course is newly serving guests form the pro shop and its brand new location on Wailea Ike – adjacent Manoli’s Pizza Company – which is, by the way…  the perfect place for the 19th hole.  Meander through the relaxing fairways with outer-island views at the base of the 10,000 ft. dormant volcano, Mt. Haleakala.  Lovely tropical florals, a coral lake and classic coral sand bunkers slice up a game of strategy and competition for an avid golfer.  Lower winds than other courses on a good day, with scenic views from every holeThis Championship Course is Wailea and South Maui’s perennial favorite and probably the most popular. Check out the map of the Wailea Blue Golf Course


Clinics, tournaments, executive and corporate and fun and family play are always available.

This master planned 1500 acre Resort was thoughtfully designed for both full-time living and vacationers wanting a luxury lifestyle.  Whether you are a first-time buyer seeking a popular vacation rental investment, or wanting to purchase your quiet Maui retreat home, Wailea is a terrific place to park your money and watch it grow. With so much growth on Maui, it’s time for you to be a part of it.  Maui county was recently named one of the best places to own a home in Hawaii as posted by MauiNow.com 

If you’re considering an investment in the Hawaiian Islands, reach out. Let’s get your toes in the sand.

With aloha, Erica

Posted on May 21, 2019 at 4:02 am
Erica Haleakala | Category: Maui, Maui Development, Maui golf, Maui Real Estate Reports | Tagged , , , , , , , , ,

Maui Real Estate Economic Update 2019

The following analysis of select Maui real estate markets is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

ECONOMIC OVERVIEW

Hawaii’s economy offered a mixed bag of growth in the fourth quarter of 2018. Employment declined 1.4% but the unemployment rate was a healthy 2.3%. Over the past year, the economy has shed 9,300 jobs, and annual job gains have been negative for the past three months.

On Maui, employment growth dropped 1.9% and was negative for the whole of the fourth quarter. That said, there are 78,600 persons employed and over 3,400 job openings on Maui. The unemployment rate was 2.3%, up from 1.7% a year ago. The market’s civilian workforce has been in decline since last summer, which may be artificially keeping the unemployment rate low. The contraction in employment during fourth quarter doesn’t overly concern me as it is likely just seasonal.

HOME SALES ACTIVITY

  • In the fourth quarter of 2018, 510 homes sold, a drop of 9.4% compared to the last quarter of 2017.
  • Two markets saw growth in sales over the same period a year ago. The Spreckelsville/Pala/Kuau market saw an impressive 25% increase in transactions and Wailuku/Kahului saw sales rise by 6.9%. There was a significant decline in sales in Wailea/Makena/Kihei.
  • The contraction in sales came as inventory levels dropped by 9.2%. It is possible that this is due to the 2018 volcanic eruption that occurred on the Big Island but, at this point, that is just speculation. I will be watching the data as we move through 2019 to see if this is the case or if there are other reasons for the slowdown.
  • Inventory growth slowed, and this lack of choice may be why we saw sales drop. That said, well- positioned and well-priced homes are still selling relatively quickly.

HOME PRICES

  • The average home price in the region rose 3.8% year-over-year to $866,107.
  • Affordability is an issue, but the drop in interest rates at the end of 2018 may stimulate buyers. I will be watching the numbers in the first and second quarters closely to see if we experience a turnaround in price growth.
  • Appreciation was strongest in the Wailea/Makena/Kihei market, where prices rose by 22.8%. Two areas saw prices rise between the fourth quarter of 2017 and the final quarter of 2018, and three markets saw average sale prices drop.

Because of affordability constraints in many Maui market areas, I anticipate we will see home prices continue to rise at fairly modest rates.DAYS ON MARKET

  • The average number of days it took to sell a home on Maui dropped 24 days compared to the final quarter of 2017.
  • The amount of time it took to sell a home fell in four markets with market time rising only in the Wailuku/Kahului area, but that increase was a modest six days.
  • In the fourth quarter of 2018, it took an average of 67 days to sell a home. The fastest moving market was in Wailuku / Kahului and the slowest was Lahaina / Kaanapali / Kapalua.
  • Even with the slowdown in home sales in fourth quarter, housing demand is still there, as the drop in market time demonstrates. I anticipate we will see more activity and rising sales as we move through 2019.

The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the fourth quarter of 2018, I have placed the needle in favor of sellers, but the market may be approaching equilibrium. Although there was a drop in home sales and price growth was fairly modest, we saw a small decline in pending sales, which may limit closings in the first quarter of 2019. That said, I remain positive about the longer-term outlook for home prices and demand on Maui.

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governor’s Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Posted on April 25, 2019 at 6:45 am
Erica Haleakala | Category: Maui

Wailea Realty Partners to Represent Mahana Estates Kapalua

 

new construction, maui builds

West Maui’s Newest Construction

Wailea Realty newly representing Maui’s newest building opportunity. Mahana Estates puts luxury at your fingertips with 51 homesites located across 125 acres in the world-renowned Kapalua Resort. Each of the residences enjoy sweeping views of Kapalua Bay, the West Maui mountains and the renowned Plantation Golf Course.

Overhead view from the lots at Mahana Estates

Located in a gated enclave, Mahana Estates is designed to enhance individual privacy while being just minutes from the sought after amenities of the Kapalua Resort.  Lots range from $1.2m – $1.9 million, from 148 sq.ft. elevation all the way up to 748 sq. ft. elevation and varying from 3/4 to 2 full acres of land.

Outer island views

Views are paramount, the palette is exquisite and the lifestyle is unbeaten.  Lot 1 is ready to go with a home already built on it and lot 2 is the next up on the roster at $8.7m. Recent reductions on the lots have this slated to be the most epic location for your dream home.

Contact me to discuss these terrific opportunities and how they can work for you. Details here.

Posted on April 16, 2019 at 1:39 am
Erica Haleakala | Category: Maui

The Kahului Airport Master Plan

The main runway at Kahului Airport would be extended by about 1,500 feet to 8,530 feet to accommodate fully loaded aircraft with direct reach to the Midwest, according to an update of the Kahului Airport Master Plan.

Kahului Airport

PC: Hawaii-Guide.com

The update of the state Department of Transportation master plan, forecasts needed improvements to the main airport on Maui through 2035, and was completed in December, following consultations with federal and state aviation and transportation officials, users of the airport and the public.

Prepared by R.M. Towill Corp., the plan lays the foundation for the preparation of a joint federal and state environmental impact statement for most of the first of three phases, which will take three years to prepare, according to state officials.

Other improvements cited in the plan, which would cost $3 billion to complete, include:

  • A much needed reconstruction of the current main runway 2-20, which is 6,995 feet
  • Planning for a new 7,000-foot-long runway, on the Haleakala side of helicopter, tour and other general aviation facilities
  • Expansion and improvements to the terminal.

The plan also calls for moving Shige Yamada’s “Maui Releasing the Sun” statue, situated in 1992 in the area next to the TSA security area, to the baggage claim area where a skylight is located.

Releasing the Sun – A Bronze Sculpture By: Shige Yamada

Lengthening the runway would mean the closure of the “back road” of Haleakala Highway between Hana Highway and Keolani Place. Past efforts by the Transportation Department to close the road, which is seen by many of us as an alternative route in case of an accident blocking Hana Highway, have faced opposition. The closure is projected in Phase 2, to be completed between 2022 and 2030.

Marvin Moniz, Maui District Airport Manager, said that he is working with transportation officials to keep the road open by building a tunnel. He’d like to save the road an keep it open. The winding road around the airport sits in the area of the main runway expansion and protection zone on the south side toward Hana Highway. The plan said that the 8,530 feet is the maximum runway length without having to redesign Hana Highway and to purchase more land, the plan said. Expanding to the north was not feasible because of “extensive land acquisition” required and the relocation of existing homes and the Kaunoa Senior Center.

The runway extension, projected to cost $96 million and built by 2021, would allow planes such as the Boeing 737-800 and 777-200 to take off at maximum weight for cities such as Chicago, Dallas and Denver, the plan said. Currently, those flights have to take off with reduced fuel that requires a stop in Honolulu to refuel before heading to the Mainland.

The main runway is in need of reconstruction, having been resurfaced five times since it was built in 1942. The last work involved an overlay project in 2006 at a cost of $3.4 million, the plan said.

The runway currently is safe but the constant resurfacing instead of rebuilding has led to cracks and joint deterioration over the years that are generating debris that could damage aircraft, the plan said. This potential danger has made reconstruction of the runway — with a 20-year lifespan — a priority of the state Transportation Department and the Federal Aviation Administration.

The projected cost for the runway reconstruction is $104.3 million.

While the reconstruction work is ongoing — which could last up to 16 weeks — an existing apron taxiway east of the main runway could serve as a temporary runway, the plan said. Closing the main runway without an alternative was not a viable option given the loss of $8.4 million a day to Maui’s economy.

There are no plans to extend the 4,990-long runway, which is mainly used by commuter airlines, the plan said.

Although beyond its scope, the plan recommends building a new 7,000-foot-long, 150-foot-wide parallel runway. The runway would be located 2,500 feet east of the main runway on the Hana Highway side of the helicopter and general aviation facilities. It would have the same operational capabilities as runway 2-20 and serve as an alternative should the main runway be taken out of service, the plan said.

The cost is projected at $768 million with acquisition of old Hawaiian Commercial & Sugar Co. cane land “an essential first step” for the runway, the plan said. The runway would be built beyond the 2035 scope of the plan.

The terminal will need to be expanded to accommodate the increased number of passengers near the 2035 end of the planning period. The number of passengers from the Mainland is expected to grow from 2.9 million to 3.6 million by 2035.

There currently are 13 aircraft parking positions — three for interisland and 10 for Mainland flights — in the terminal. The plan calls for leaving space on the south terminal area for expansion.

The larger north terminal has nine aircraft parking spaces and 22 departure gates. With the relocation of cargo and car rental facilities to the new consolidated rental car facility currently under construction, there could be space for an additional exit to the baggage claim area, additional passenger holding rooms and parking areas for planes.

North terminal expansion is constrained by the runway, relegating the area to aircraft parking and movement and airline operations, the plan said. New gates would be added to the south terminal.

The south terminal has four aircraft parking positions, six holding areas and 16 gates. The holding areas are nearly half the size of those in the north terminal and would be tripled in size by plans to build over an interior roadway and connect with the terminal building on the other side.

Some expansion work for the south terminal has been included in Gov. David Ige’s proposed biennium budget from July 1 to June 30, 2019. The governor has included $39 million in revenue bonds for hold room and gate improvements, said Transportation Department spokesman Tim Sakahara.

Moniz explained that the money would be used to enclose the open walkways in the south terminal to enlarge passenger-holding areas and restrooms, widen gate areas and create a retail concession area. Airport officials also are studying the addition of one more jet bridge.

As part of the larger expansion of the south terminal in the plan, air cargo and alien species inspection facilities will be relocated to lots on the south ramp.

The next step is to prepare a joint federal and state environmental impact statement prior to applying for construction permits. The EIS, which will include most of the plan’s Phase 1, will focus on the main runway expansion and reconstruction, improving taxiways for the temporary runway, installation of navigational aids and lights, taxiway realignment, expansion of south terminal hold rooms, relocating the Maui statue, closing a portion of Haleakala Highway, and adding 500 spaces to cellphone/employee parking lots.

The parking structure is near complete and we anxiously await the next phase. If this kind of growth doesn’t speak volumes for Maui’s development as a whole, I don’t know what will. It’s coming folks, and it’s an excellent time to be living and investing on Maui.

If you’re curious, reach out, let’s talk.

Aloha, Erica

 

Article Credit:  Maui News

Posted on September 5, 2018 at 11:32 pm
Erica Haleakala | Category: Maui, Maui Airport, Maui Development | Tagged , , , , , , , , ,

What can $650,000 Buy You in Real Estate on Maui

“A quick synopsis of the market in one of the hottest US investment and tropical destination locations. You’d be surprised at how affordable Buying on Maui can be. “

Year round sunsets and perfect weather, and a quality of life that is unsurpassable. I encourage you to ask questions, poke around and discover what a smart investment in the Hawaiian Islands can do for your financial portfolio and your peace of mind. Vacation rentals are what makes Maui appealing to the investors palette. Year round sun, means year round vacations. Purchase a family legacy to return to and build memories while generating a passive income stream at the same time.

The Short Term Rental market starts at 400k and the sky is the limit for Maui’s most luxurious oceanfront developments. There are all kind of options for both South and West side locations at this price point. This week, my favorite opportunity is a 3 bedroom, 2 bathroom short term rental in Koa Resort, across the street from sandy beaches in Kihei, South Maui. This spacious unit has a functional floorpan in a low density and lush garden ambiance. Development amenities include tennis, pool, jacuzzi, and sauna. Smart investment recently listed at 629k.

Absolute oceanfront from this 1 bedroom, 1 bathroom short term vacation rental at Sugar Beach Resort. A clean and bright unit with granite in kitchen and bath. Year round sunsets and whale watching in the winters from this make this short term rental an absolute no-brainer – it will rent like clock work year-round. If this one sparks interest, act fast. Oceanfront at this price point doesn’t last long. Just listed at 699k.

A charming fixer with good bones and a great floor plan in Maui’s Makawao Ranch Acres. This home has a large lanai with 3 bedrooms and 3 baths and 1900 sq. ft. of living space. Tucked on the hillsides of majestic Haleakala Crater for cooler climates and fresh trade wind breezes. Enjoy brisk weekend mornings at the Kula farmers market, and be conveniently located near Maui’s most coveted private schools. This spacious 12,000 sq. foot lot is a smart investment and provides enough room to settle in and settle down in a charming upcountry location. Newly listed at 665k.

A 14,500 square foot vacant lot ready to build. Wonderfully located cross the street from multi-million dollar homes and the most epic sandy beaches. Halama Street is known for it’s oceanfront estates and extreme accessibility. Stand-up paddle, fish and enjoy year round sunsets in a highly desired South Maui location. At approx 1/3 acre and zoned R-3, this flat, rectangular 142’ X 101’ lot is in a new subdivision. Water meters, road improvements, curbs and walks are all in and ready. Bring your imagination and lets put paradise in your portfolio.

“World-class beaches, dining and golf are right at your fingertips.”

If you’ve thought of making an investment in a place of rapid growth and endless appeal, I’d love to talk to you about the best opportunities available on Maui. I’m happy to share all about my relocation from Los Angeles in my early 30’s – and how amazing it feels to never look back. The priorities shift when buying on Maui – you start to feel and share the aloha.

Posted on August 4, 2018 at 12:54 am
Erica Haleakala | Category: Oceanfront, Short Term Rentals | Tagged , , , , , , ,