Wailea Condo Market Update

Today's question comes from a client who has been exploring the Wailea real estate market for some time:

Question: It seems like the Wailea condo market is really down from last year, are values going down keep up with this decrease?

Answer: Although to some the market may seem to have slowed down, year over year all the metrics that we use to measure market activity across are reflective of a micro-market. Below is a chart comparing the Jan-May timeframe of 2014 to that of the current year - the average sales price slipped slightly from $1.564M to $1.47M, while the median sales price saw a slight increase from $1.01M to $1.07M. However, a key metric worth pointing out is that sales increased by a whooping 30.2% from 43 sales to 56. Total sales volume for the current year in the time period analyzed was $82.21M up by nearly $15M over the previous year. It could construed that the decrease in the average sales price is due to 2014 seeing higher absorption in the high-end sector of this particular micro-market (2014 for Jan-May over 26% of sales were over $2M, whereas 2015 the percentage decreased to 18% at that price point).

With new projects such as Keala O Wailea bringing diversity to the Wailea market, it could be argued that introduction of new projects will prove to be an ignitor to an already increasing micro-market. For more information, check out our Wailea Construction Update and reach out with any questions - whether about a specific property, the Wailea real estate market, or Maui in general.

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