As 2011 comes to a close, we take a little time to say thank you and reflect on why we are so lucky to be living in one of the greatest places on Earth: Maui, with its great beaches and outdoor activities, its wonderful, casual way of life, fabulous eateries, sunshine and the Aloha spirit. We are truly blessed to be part of such a great community and lucky to call it home.
We started to breathe a little deeper as the year ended on a more positive upswing in the Real Estate sector.
As we look at Maui's Real Estate numbers for 2011, it is happily very positive! Overall, according to RAM (Realtors Association of Maui) year-to-date, all categories of real estate are up as compared to 2010. Condo sales took the least uprising at 1 percent, with the actual pricing per unit dropping. Land took the next leap with increases of 9 percent (many in Launiupoko), and pricing per unit up by 24 percent. The largest gain in transactions seems to be in the residential market, with increases of units sold up by 10 percent and increasing prices by 2 percent.
Maui residents enjoy living in one of the most beautiful places on Earth.
This is great news, as we see that the number of units sold will help to translate into getting the old inventory off our shelves and laying the way for the market to stabilize. When we look a little deeper into the type of units sold, we find that quite a large percentage of the units were of a short sale nature or bank owned property reselling to the public. That is fine, as that is what needs to happen before our market can back to a healthier state, and with 18 percent of the inventory declining, that is a trend we are glad to see continue.
In West Maui, our markets showed unbelievable growth! Single-family homes in areas of Kaanapali jumped up 60 percent over last year, and Napili/Kahana area hit 71 percent increases over sales in 2010. Launiupoko had a steady and strong year in sales as well. We closed 13 land transactions ranging from $315,000 up to $2.1 million. The Launiupoko residential sales did just as strong, with 13 sales ranging from $850,000 up to $3 million.
With interest rates still at record lows, and the pricing on existing inventory still very attractive, it adds up to a great time to buy or invest into the Maui Real Estate market and the Maui lifestyle. Low interest rates, well-priced inventory and the motivation on both sides to get things done can all add up to a win-win situation for everyone.