Maui homes
top $500,000The median price rises 34.8%
in a year, with Kauai and the
Big Isle also showing gains
The median sales price of a single-family home on Maui has now topped more than $500,000, the highest median price ever recorded on the Valley Isle.
In October the median reached $527,500, a 34.8 percent increase over the median of $391,220 a year ago.
Despite the record, buyer enthusiasm does not seem to have dampened. There were 104 single-family home sales recorded during the month, an increase of 8.3 percent over the previous October's 96 sales.
The high cost of Maui housing is evident in the long lines of people waiting to make a reservation at two recent new housing projects, said Keoni Ball, broker in charge at Wailuku's Carol Ball and Associates realty firm.
"I attended the opening of a project called the Ohia in Wailuku. There were probably over 600 people in line, and that was 4:30 p.m. the day before the opening -- and they didn't even have a price list," he said.
Ball notes that on the following weekend at another new development in Wailuku, the line of people waiting began on the previous Wednesday.
"That does send a little message that there is a housing shortage," he said.
Ball believes it is getting harder to find a single-family home on a decent-size lot for less than $500,000 on Maui.
"It's hard to find any size. Maybe in the $400s or high $300s, but that will get you a tiny house on a tiny lot," he said.
Condominium sales prices also have been steadily advancing, increasing 36.5 percent in one year to reach a median of $273,000 in October. Likewise, the number of condo sales, at 146, is 5 percent ahead of the previous October's 139 sales recorded.
About 60 percent of the condominium purchases on Maui are still being made by outside investors, according to real estate analyst Ricky Cassiday.
In spite of rising home prices, people still appear willing to pay what is being asked, Cassiday said.
But he cannot predict where the top of the market will likely be.
"There is too much demand and not enough supply," he said. "I don't see any slowdown. I think prices have to move up significantly, but I can't tell you where 'significantly' will be."
The highest number of single-family home sales recorded in October occurred in Kihei, which posted 21 sales. Central Maui and Napili/Kahana/Honokowai areas followed recording 14 sales each. With 70 condominium sales in October, Kihei recorded more than double the number of sales posted for any other Maui neighborhood.
On Kauai and the Big Island, the pace of home sales showed no sign of a slowdown in October.
There were 226 single-family home sales on the Big Island in October, an increase of 28.4 percent over the previous October's 176 sales.
"What amazes me is the number of sales (on the Big Island) continue to increase when inventory is getting lower and lower," said Gary Davis, broker-in-charge at Clark Realty in Waimea.
The median sales price for a single-family home also increased on the Big Island, reaching $250,000, a 16.3 percent increase over the median of $215,000 during the same period last year.
But Davis notes that the $250,000 median price for a home on the Big Island can be deceptive because it reflects prices for the entire Big Island. In some areas, particularly in and around the resort areas along the Kona-Kohala coast, median prices are substantially higher.
"If you took out areas such as Hilo and South Point, our median would probably be closer to $400,000, Davis said.
The pace of Big Island condominium sales also continued its strong performance in October with 91 sales recorded, a 15.2 percent increase over the 79 sales that occurred in October 2002. The median sales price for a condominium was $210,000, a 21.4 percent increase from $173,000 in October 2002.
On Kauai the number of sales in October of both single-family homes and condominiums rose. Single-family home sales in October were up 20 percent to 60 sales from 50 the year before. There were 48 condominium sales, a rise of 14.3 percent from the previous October's 42 sales. The median price paid for a condominium on the Garden Isle showed a 39.5 percent increase, rising to $284,500 from $203,968.
But the median price of a single-family home fell 8.9 percent to $350,000 last month from $384,250 in October 2002.
The drop in the median single-family home price is more likely a function of lack of inventory than anything else, said Kauai Realtor Bob Keown, principal broker at Makai Properties in Poipu and Waimea.
"I think it's definitely inventory, which has been woefully short here," Keown said.
Would-be condominium purchasers are also feeling the heat, too, he said.
"In the Poipu area, we literally don't have any two-bedroom condominiums under about $400,000. If we do, it's gone in a day."
Keown also has noticed a shift in the type of property outside buyers are now purchasing. More mainland buyers, seeking second or retirement homes, are bypassing homes in resort areas in favor of local neighborhoods.
"People are more willing to retire in more local-type neighborhoods if the price is right," he said.
Keown said he also has noticed more property speculation occurring on Kauai recently.
"I've started to notice more investor-speculators for the first time in a long while," he said. "Over the last several months, we've seen them come in from all over. I guess they've been studying the market and have seen the appreciation is more here than a lot of other markets. Unfortunately, for our local market, that's not good."
