Maui luxury home sales during the Covid-19 pandemic – July 2020 update

Are you wondering how the real estate market on Maui is doing in these extraordinary times?

When our “lock down” hit us on Maui, near the end of March, many wondered what would happen to real estate sales.  Some escrows canceled due to the uncertainty, but many transactions were just business as usual.  Sales of high-end properties continue.  It seems that luxury sales are doing quite well despite the pandemic, maybe even because of it.  Buyers in the $2,000,000+ range are probably not first time home buyers, they have experience buying homes and know what they want and can afford.  So it should come as no surprise that this segment of the market can hold its own.  Here’s what ‘s been selling lately, in the past 3 months, the second Quarter…

Luxury home sales over $2,000,000 – April 1 to July 2, 2020

SOLD:

• 17 closed sales priced from $2,000,005 – $4,600,000
• average sale price was $3,385,294
• median sale price was $3,350,000
• total dollar volume was $57,550,000
• 11 sales were with cash and 6 were with conventional financing
• 3 of the listings were house and detached ohana
• 3 were oceanfront properties
• Days on Market ranged from 1-559, with an average of 260 and a median of 233 days

* A word about price reduction.

As we know, buyers are always looking for a deal and hate to pay full price.  It’s just human nature.  So if you were to ask, “did any of these luxury home listings sell for full price?“, the answer is “it depends“.  Technically 4 sold for full asking price, BUT in 3 of those cases it was not the original price.  In other words, it took a good price reduction to attract an offer that would stick.  Only 1 home sold at full original price and that was a brand new development home.  Developers generally don’t negotiate on price, but they will throw in some concessions.

Location of luxury home sales on Maui.

Where are these homes priced over $2,000,000?  What part of the island?

• 3 in Haiku priced from $2,100,000 – $3,875,000.  All with swimming pools, and 2-12 acres of land.  The highest priced was oceanfront.
• 2 in Kaanapali priced from $2,750,000 – $4,150,000.
• 1 in Kapalua priced at $3,850,000.  A Plantation Estates home on 4.5 acres
• 2 in Kihei, on Halama St. (0ceanfront) priced at $3,350,000 and $4,600,000
• 1 in Kula priced at $2,005,000.  Large home on 4 acres, with bi-coastal views
• 2 in Lahaina priced at $2,850,000 and $3,000,000.  Launiupoko CPR homes each with 1.3 acres
• 1 on Lanai Island sold for $4,300,000.  Still no Covid-19 cases on this island!
• 5 in Wailea priced from $2,360,000 – $4,360,000.  None were oceanfront, and all with swimming pools.  Largest lot is a half acre.