This is a followup to a previous blog I did that talked about the differences between cesspools and septic systems and their use within Maui County. What follows are real stories about real people and real cesspools on Maui. Names and other information has been changed. The Case of the No Place to Go Cesspool […]
Located at the top of the master planed community Kehalani, The Villas offer spectacular coastal and mountain views. Along with the great setting, The Villas are conveniently located 2.6 miles from Maui Memorial Medical Center and less than 2 miles from the courthouse. Click image to enlarge The second model is the 3 bed, 2.5 […]
If you are interested in purchasing a home within the Parkways development, here is the step by step process: 1. Get on the reservation list. An initial deposit of $5,000, made to Title Guaranty Escrow Services, is needed to be placed on the reservation list. Circled lots are the latest lots released to the reservation […]
Changes for net metering have been in the making for quite some time. With so many consumers taking advantage of photovoltaic benefits, it was only a matter of when, not if the program had to be reworked. In January 2015, HECO proposed a plan to the Public Utilities Commission that would handle the switch from […]
During the first half of 2013 there there have 42 sales at the Honua Kai Resort and Spa year to date – 27 of these sales were original developer units. In 2012, there were a total of 83 sales – 80 of these sales were original developer units.
We are beginning to see a clear trend that the resale market has become far more prominent than it has in the past. Sales for this year are so far on track with those of last year, but it will be interesting to see how many of the developer contracts that are currently in escrow actually close this year.
There have been a total of 17 sales at Honua Kai since my last market update at Honua Kai: Honua Kai Real Estate Market Update May 2013. The lowest closing of 2013 was $419,900, the high was $4,450,000, the average sold price was $1,072,000, and the median was $775,000.
Honua Kai Sales Since May 1, 2013
As I mentioned above, there have been a total of 16 sales at Honua Kai since my last market update. 10 of the 16 sales were original developer units. Below is a list of all the closings during this time period:
- Konea #930 – 1bed/1bath, 690 sq.ft. mountain view unit closed for $569,900 on 5.17.30 – all cash developer sale.
- Konea #238 – 1bed/1bath, 615 sq.ft. mountain view unit closed for $599,900 on 5.17.30 – all cash developer sale.
- Hokulani #724 – 1bed/1bath, 620 sq.ft. mountain view unit closed for $610,000 on 6.7.30 – this was a resale unit involving seller financing. I think it was a very good idea for the seller to carry the paper on this property considering that the most recent sale of a comparable unit at the time was the one that I sold for $525,000. I think it would have been very hard for the buyer to obtain the appraisal value that they would have needed in order to complete conventional financing. A few appraisers are catching on to the fact that we are in a rising market, but, unfortunately, not all.
- Konea #610 – 1bed/1bath, 730 sq.ft. partial ocean view unit closed for $647,500 on 5.28.13 – an all cash transaction on a resale unit.
- Konea #231 – a partial ocean view 580 sq.ft. studio that closed for $669,900 on 5.31.13 – developer sale involving conventional financing.
- Konea #331 – a partial ocean view 580 sq.ft. studio that closed for $679,900 on 6.10.13 – developer sale involving conventional financing.
- Hokulani #422 – a mountain view two bedroom/two bath unit 1,080 sq.ft. unit that closed for $850,000 on 5.1.13 – this was a resale unit and the seller made an incredible profit considering that they paid $510,000 for this property in mid 2011 which coincided with the large developer price reductions at the time. Timing and market conditions is everything in real estate.
- Konea #218 – a mountain view unit with the slightest glimpse of the the ocean of 1,230 sq.ft. closing for $930,000 on 5.21.13 – this was a resale unit that sold to an all cash buyer. This property was on the market for almost 3 years in total and the seller originally paid $956,750 for this property in the spring of 2010. They originally priced the unit at $1,225,000 which illustrates the proven trend that initial pricing accuracy is of utmost importance.
- Hokulani #112 – a partial ocean view two bedroom/two bath unit of 1,100 sq.ft. closing for $949,900 on 6.7.13 – this was a developer sale involving conventional financing.
- Hokulani #510 – a partial ocean view two bedroom/two bath unit of 1,100 sq.ft. closing for $989,000 on 6.6.13- this was a developer sale involving an all cash purchase.
- Konea #404 – a two bedroom/two bath partial ocean view unit of 1,250 sq.ft. closing for $1,099,900 on 6.14.13- this was a developer sale involving conventional financing.
- Hokulani #536 – a two bedroom/two bath partial ocean view unit of 1,240 sq.ft. closing on $1,100,00o on 6.7.13 – this was an all cash resale transaction. I featured this property in a previous video blog: Honua Kai 2 Bedroom Partial Ocean View Unit Falling Out of Escrow. The seller paid $1,146,350 for the property in early 2009, but I think that they actually ended up a lot better than many Honua Kai sellers who bought at this higher price level during this time period would be if they had to sell now.
- Konea #109 – a two bedroom/two bath inner courtyard ground floor unit of 1,315 sq.ft. closing for $1,225,000 on 5.15.13 – this was a resale unit involving conventional financing. The sellers of this unit took a really huge financial hit and I really feel for them as they paid $1,650,750 in the spring of 2010. This illustrates the point I made about the sale Hokulani #536 above.
- Hokulani #745 – a two bedroom/two bath ocean view unit closing for $1,225,000 on 5.31.13 – this was a resale unit closing to an all cash buyer. Once again, I feel really bad for this seller as they took a huge hit by paying $1,771,350 in early 2009.
- Hokulani #211 – a two bedroom/two bath inner courtyard partial ocean view (see pic above) of 1,100 sq.ft. closing for $1,285,000 on 6.24.13. This was a developer sale and I represented the buyer on this transaction involving conventional financing as they contacted me after reading my extensive blog series at Honua Kai.
- Hokulani #549 – a two bedroom/two bath 1,100 sq.ft. ocean view unit closing for $1,340,000 on 6.10.13 – this was a developer sale involving an all cash buyer.
- Konea #729 – a 3 bedroom/3 bath unit of 1,610 sq.ft closing for $2,125,000 on 5.17.13 – this was a developer sale involving conventional financing. I’m sure my clients who purchased Hokulani #629 for $1,900,000 are feeling pretty good about their purchase with this recent closing: Canadian Couple From Vancouver B.C. Purchases a 3 Bedroom Honua Kai Unit for $1,900,000.
Observations from 15 Resale Units YTD
I am only going to discuss this trend for the 2013 resale properties as all of the developer units have recorded at their asking prices with 2 years of HOA fees being covered by means of a cash credit at closing to be applied to all allowable buyer closing costs.
For the year to date sales in 2013, the highest days on market for a property was 916 days on market (see Konea #218 above under closings), the lowest was 52 days on market, the average was 188 days on market, and the median was 105 days on market. All of these properties include the escrow time period so figure 45-60 days for your typical escrow with a purchase involving financing.
Sellers are getting on average 93.57% of sold price versus the last listed price before the property goes under contract. Contrast this with 91.71% of sold price versus the original listed price of the property, there were only two properties of this group that actually had price reductions before going under contract.
Really the only unit that threw of the listed price vs. original price illustration was Konea #218, which was originally listed at $1,225,000 and closed for $930,000 after almost 3 years on the market. I tossed the sale of Konea #610 from this sample set because they actually increased their listed price from $649,000 to $669,750 and eventually closed at $647,500.
Cash vs. Financed Transactions in 2013
- 27 Developer Sales – there were 11 all-cash transactions and 16 transactions that involved conventional financing.
- 15 Resale Sales – there were 9 all-cash transactions, 5 financed transactions, and one seller finance transaction.
In conclusion, the split between cash and financed transactions in all of Honua Kai 2013 YTD is roughly 48% cash and 52% financing.
2 Resale Units Under Contract Right Now
As of today, there are currently two resale one bedroom units currently under contract at this time.
- Konea #224 – a one bedroom/one bathroom unit of 750 sq.ft. with a mountain view currently listed at $649,000. The seller of this property paid $553,800 for this property in late 2010, so I am thinking that they will likely be making a profit on this sale. This property went under contract after about 5 months on the market.
- Konea #210 – a one bedroom/one bathroom unit of 730 sq.ft. with a mountain view currently listed at $675,000. The seller of this property paid $676,450 in the spring of 2010, so it is likely that they are loosing some money on their investment after closing costs. I have a client who purchased Konea #410 (2 floors up from this unit) for a little over $500k right after they did the first round of major developer price reductions at Honua Kai in the summer of 2011. Furthermore, Konea #610 closed at the end of last month at $647,500. Timing is everything in real estate.
The picturesque mountain view from Konea #110
Newest Listings at Honua Kai
The developer input about 10 of their existing inventory into the MLS, but I won’t count these as new listings as they have been on the market for a while.
- Konea #110 – a 1bed/1bath 730 sq.ft. ground floor mountain view unit pictured above listed for $729,500
- Hokulani #533 – a studio ocean view unit of 583 sq.ft. listed for $738,000
For all of the resale units actively for sale as well as a number of the developer units please visit my Honua Kai Real Estate Gallery.
Price Reductions at Honua Kai
The outstanding view from the living room of Hokulani #741
The sellers of Hokulani #741 have reduced their price from $1,985,000 to its present listing price of $1,830,000. This is a larger two bedroom/two bath unit of 1,320 sq.ft. and has an outstanding floor plan which is quite rare in the resort, but allows it to have absolutely outstanding views from the kitchen, living area, and outdoor covered lanai which is about 500 sq.ft.
Recent Honua Kai Articles Since My Last Market Update
- Canadian Financing at Honua Kai with 30% Down Payment – 18% of the owners at Honua Kai are Canadian citizens, how are they securing these properties?
- Honua Kai Rental Income Figures – What type of properties “pencil out” best?
- New Ocean View One Bedroom Resale at Honua Kai – This property has now been on the market for 60 days and the price was recently lowered from $799,000 to $775,000.
Services as Buyer’s Agent
Please do reach out to me regarding any questions at Honua Kai. I have the complete list of all available developer inventory, I have many videos of units actively for sale both resales and developer inventory, and I provide excellent service to all of my buyer clients in terms of thorough education and solid representation.
Please do read a recent testimonial from a buyer client of mine who purchased luxury home in Launiupoko just outside of Lahaina town: Launiupoko Estate Property Just Sold for $2,975,000 in West Maui.
Honua Kai Sellers
I have done extensive market research on Honua Kai and feel very confident in my ability to pinpoint very accurate values for your property. Maybe you would like to consider selling your unit to transition to another property at Honua Kai, or to accomplish other goals? I can help you get there.
There is no agent and brokerage firm that is going to offer you more international exposure, precise knowledge of the resort, and attention to detail and service to get the job done.
The buyer testimonial above is from an individual like the 15 million others who are watching our hit TV series “Hawaii Life” on HGTV and driving our web exposure through the roof. With an average of 270,000 web browsers and potential buyers each month, no firm even comes close to our global exposure.
Aloha from Maui,Jeremy Stice REALTOR (Broker) 808.281.2178 Stice@HawaiiLife.com
My Blog Series on Honua Kai Condos
- Honua Kai Resort in Kaanapali, Maui – Start here, as this blog will provide you with a good overview of the resort including video on its location, and its world class amenities and ownership offerings.
- Honua Kai Resort Real Estate For Sale – Kaanapali, Maui Condos For Sale – This post focuses on the inventory actively for sale and where all the units are located.
- Canadian Financing at Honua Kai available with 30% Down Payment – 18% of the owners at Honua Kai, how are they securing these properties?
- Honua Kai Rental Income Figures – With some of the strongest returns of any ownership opportunity in Hawaii, Honua Kai deserves your strong consideration for short term cash returns on investment.
- New Ocean View One Bedroom Resale Unit Just Listed – check out this post on my one bedroom best buy in all of Honua Kai.
- Honua Kai May 2013 Market Update Report – Read about the new developer price reductions and all the recent market activity down at the resort.
- 50 New Price Reductions on Two and Three Bedroom Units at Honua Kai – New developer price reductions announced on April 18, 2103.
- Honua Kai March 2013 Market Update Report – There has been a significant increase in the level of sales for two bedroom units at the resort. Read all about it here.
- One Bedroom/One Bath Mountain View Unit at Honua Kai Sold for $525,000 – Congratulations to the Kojima Ohana on their recent resale purchase at Honua Kai.
- 5 Remaining One Bedroom Plus Den Units for Sale at Honua Kai – They are sold out of developer one bedroom units but check out this video blog for this niche units starting in the high $700k range.
- Honua Kai 2 Bedroom/2 Bath Condo Sold a Seller’s Perspective – What our seller client had to say about our team selling their property for a $135,000 short term gain.
- 2 Bedroom Ocean View Best Buys at the Honua Kai Resort and Spa – Feb ’13 post on the best ocean view and partial ocean view two bedroom units.
- 4 New One Bedroom Listings at Honua Kai – Posted on January 2013 be sure to check out these best buys priced under $550K
- Honua Kai January 2013 Market Update – What’s happening in the new year at Honua Kai? Are prices increasing?
- Honua Kai HOA Fees Increasing By 10% Effective Feb. 1, 2013 – What are the current fees, what do they cover, and what other costs of ownership are involved?
- 25% Down Payment Financing Options at Honua Kai – Get the inside track on leveraging your cash investments at Honua Kai.
- Canadian Couple From Vancouver B.C. Purchases a 3 Bedroom Honua Kai Unit for $1,900,000 – Did you know that many of the owners at Honua Kai are from Canada?
- Honua Kai November 2012 Market Update – The latest news after a crazy year of selling
- Honua Kai January 2012 Update – Why Honua Kai is the hottest deal in town right now
- Honua Kai Purchase Process – An owner’s perspective of purchasing and experiencing the resort.
- 35% Price Reductions on Condos For Sale at Honua Kai Resort – Read about how the developer dramatically slashed the prices at Honua Kai and where some of the best deals are at.
- Price Reductions on Honua Kai Resort One Bedroom Units – Video blog on 1-bedroom units that are Screaming Deals.
- Honua Kai Resort in Kaanapali – Best Two Bedroom Deals – Video blog on 2-bedroom units that are Screaming Deals.