Honua Kai Quarterly Update 2014

By all accounts, the Maui real estate sector has seen another upward push in the first quarter of 2014, with the high end sector seeing the most significant improvements. But as conditions can vary widely from one micro-market to the next (even in adjacent properties), it is pertinent to look at how the Honua Kai condos micro market is doing so far in 2014, when compared to same time period in the previous year.

• Sales Price - Looking at every metric available, sales prices at Honua Kai increased year over year. The first quarter of of 2013, the average sales price was $971,366, median sales price was $762,700, and the price per square foot was $949, whereas the first 3 months of 2014 saw those values increase to $1,137,281, S1,044,900 and $1,029 respectively. It is worth noting that the average price per square foot increased despite the top sales of this year ($1.88M and $2.215M) were much lower than last year's ($2.475M and $3.5M). Anecdotally, we are experiencing competitive conditions, particularly for units that are seldom on the market, such as front-row 3 bedroom villas or 1 bedroom + den units.

• Number of Sales - For the most part, the number of units absorbed did not change - at least not dramatically. 1Q2013 had 18 sales, whereas this year that number increased by one, to 19. However, it is interesting to note that resales decreased, from 7 to 4. Arguably, one could reason that this is in part to the developer making a strong push to release its remaining inventory, while owners who are able/willing are waiting it out to see more favorable conditions once the developer is no longer involved in sales.

• Unit Type - Not much has changed by way of the type of units being sold at Honua Kai: 1Q2013's 2 Studios, 8 one bedroom units, 6 two bedroom units, and 2 three bedroom villas versus 1Q2014's 8 one bedroom units, 9 two bedroom units, and 2 three bedroom villas.

• Sales Volume - Thanks to a higher average price per square foot, sales volume experienced a marked increase from $17,484,600 to $21,608,350. And with a number of large potential sales in escrow, it is within reason that sales volume for 2014 will surpass easily 2013's already impressive total of $90,288,505 - time will tell.

• Terms - As lenders are becoming less stringent in their lending criteria, it may actually surprise some that there were more cash sales this year than in the first quarter of last year - 10 sales as compared to 8 last year. Of course, one could reason that this is due to increase in consumer confidence - yet prior to high season some had expected consumer confidence to be stagnant, particularly so among Canadian buyers (due to less-than-favorable currency exchange).

We continue to stay at the forefront of the Honua Kai micro-market in order to best serve our clients interested in purchasing a Honua Kai condominium, which by most metrics still 'pencil out' better than virtually every other condominium on Maui offering a similar lifestyle value proposition. For those interested in purchasing or selling a Honua Kai condo, contact us below.

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