MARKET UPDATES:
Price reductions and an overall inventory increase are becoming the norm this past few months, and July was no different.
Maui is quickly entering into a Buyer's market, shifting the advantage towards Buyers who now have much more options than they had the past 3 years, and therefore more opportunities to get a good deal on a property. And to make it even sweeter, mortgage interest rates hit a 15-months low a couple days ago!
However, we are not seeing much activity in our market at the moment.
Maui home and condo prices had gotten so high due to the inventory drought in the past few years, that most Buyers are still out of the running, or trying to gauge when their ultimate timing will be.
It seems that the only active Buyers at this time are the ones looking for an amazing deal, and we are seeing more nervous sellers willing to give it to them. That is especially true for the Short-term rentable Condo market in West and South Maui which has been greatly affected by the Mayor's bill proposal on 5/2/24 to phase-out the STR condos in the Apartment zones (ie Minatoya List: https://www.mauicounty.gov/DocumentCenter/View/112945/Short-Term-Occupancy-List-as-of-06272024?bidId=).
We are also starting to see a greater increase in the residential condos inventory, mostly due to the drastic rises of the HOA fees, which is a direct result of an alarming increase in insurance costs.
The Governor has just issued an emergency proclamation to try and address this issue a couple days ago (https://governor.hawaii.gov/newsroom/office-of-the-governor-news-release-gov-green-signs-emergency-proclamation-to-address-condo-insurance-crisis/).
The Residential Home market is just now starting to show signs of a downtrend, and Homes are taking longer to sell. This is especially visible in South (Kihei/Wailea) and Central (Wailuku/Kahului) Maui. West Maui (Lahaina/Kaanapali/Honokowai/Kahana/Napili/Kapalua), Haiku, and Upcountry (Kula/Pukalani/Makawao) still have a fairly low inventory at the moment.
There seems to be a couple main reasons to this downtrend in the residential market; one being that most of Lahaina residents who lost their Homes in the devastating wildfire last year, and who were financially able to purchase a new property, did so already, and that demand is now declining. And the second reason being, that a lot of people who had decided to move to Maui in Covid times and work remote, are either being called back to their physical work places on the mainland, or decided Maui is not for them after all, and they are now trying to sell their property.
The Luxury market remains fairly stable. Some price reductions are definitely being observed in that category as well.
CHANGES TO THE WAY WE DO REAL ESTATE ON MAUI ARE UPON US:
Some of you may have followed the news a few months ago when NAR (National Association of Realtors) entered into a settlement following a class action lawsuit.
Here is a few links to read up on in case you did not follow, but it is important to know that the changes to our industry resulting from that settlement will be taking effect starting Monday, August 12th 2024.
https://www.nar.realtor/magazine/real-estate-news/law-and-ethics/breaking-down-sitzer-burnett
https://www.nar.realtor/the-facts/nar-settlement-faqs
One of the most noticeable changes for the consumer will be that Realtors will no longer be able to show potential Buyers properties for sale without having previously signed a Buyer's representation agreement. That agreement will outline their duties to one another, as well as their services and compensation.
While many states already require this agreement to be signed prior to any showings, Hawaii did not until now.
JULY 2024 MAUI MARKET REPORT:
FEATURED PROPERTY: Kapalua Golf Villas - 500 Kapalua Dr, Lahaina HI 96761
Photo Credit: Dino Tassara
This wonderful complex was built in 1977. It consists of 16 buildings, and 4 swimming pools with BBQ areas.
Each unit comes with a designated parking stall. Guests and renters can park in the unmarked and uncovered parking spots.
All 186 spacious units are equipped with washer and dryers and central air.
There are built on 3 levels: P, T and V
P stands for "Patio Level". They are all 2 bedroom/2baths units, and all have steps going down.
T stands for "Terrace Level". Those units have very minimal steps from the parking area. That level boasts a variety of sizes: 2 bedroom/2 baths single level, 2-bedroom lofted units, 1 bedroom/2baths, and 1bedroom/1.5bath.
V stands for "Vista Level". Most units on that level are 1 bedroom/1.5bath, but there are also some 2-bedroom units with loft.
Most buildings will have sunset and ocean views.
Most of the time the complex is protected from the winds; the Vista levels will be the most exposed to them.
Short-term rental are currently allowed at the Kapalua Golf Villas; the complex is however zoned Apartment and on the Minatoya list, and could be impacted if the Bill proposed by the Mayor on 5/2/2024 should end up being enacted.
What I love about the Kapalua Golf Villas:
This is one of the best value for an Oceanview property in the luxurious Kapalua Resort. The units are spacious, and the monthly maintenance fees are the lowest in the area, most likely due to the fact that the property sits a bit away from the ocean, and therefore does not get the same wear and tear as a direct oceanfront complex would. Yet, you still can enjoy the spectacular ocean views, year-round sunsets, and the Humpback whales activity in the winter month from your lanai.
Kapalua is a luxurious resort area in West Maui, where you will be just a short distance from some of the World most beautiful beaches, the famous Kapalua Plantation and Bay golf courses, as well as many amazing restaurants. Property owners in Kapalua as well as their guests, also get the exclusive use of the complimentary shuttle within the resort.
WHAT'S NEW IN WEST MAUI:
One year after the devastating wildfire that claimed the lives of 102 souls, and destroyed our cherished Lahaina Town and over 2200 structures, the community still has a very long road ahead, but a lot of little changes are keeping the Hope alive, and all of us moving forward.
The debris removal crews are doing an amazing job at cleaning residential and commercial lots, and are way ahead of schedule.
Quite a few businesses have found new locations and are all looking forward to your business. Here are a just few of them I would like to highlight:
-Nā Hoaloha 'Ekolu Restaurant Group owns the Old Lahaina Luau (https://oldlahainaluau.com) which re-opened at its same location in March 2024, Leoda's Pie Shop in Olowalu (https://www.leodas.com) which re-opened about 4 months after the fire, Aloha Mixed Plate (https://alohamixedplate.com) which had closed during Covid and re-opened late March 2024 at its original location, and Star Noodle (https://www.starnoodle.com) which just re-opened on 8/1/24 at the old Fridas location on Front St.
-Ulu Kitchen by Peter Meriman opened its doors at the Westin in Kaanapali in April 2024. Great burgers, great food and great staff!
-Sergio's Cantina was supposed to open in the Fall of 2023, but had to delay its opening to January 2024 due to the aftermath of the fire. Great ambiance in Honokowai, go check them out:
https://sergioscantinamaui.com
I am available at any point, for any questions.
Call or text (808) 344-4167, or email me at juliette@surfmauirealty.com