Thus far this year fifteen condominiums in Wailea/Makena have gone into escrow. That compares to twenty-three in the same period in 2006. That is a decline of 35%. The median sale price thus far this year is $1.65 million, an 18% increase over the same period a year ago. The per square foot average is $1,867, a 48% increase. Most of that can be attributed to three of this year's sales being Wailea Beach Villa's prized "Villa" units which have had an average selling price of over $7 million. Mountainside complexes (Palms, Wailea Ekolu etc.) have seen a median sale price and a per square foot value decline of 18% compared to the same period last year. The busiest complex has been the Palms at Wailea and Wailea Beach Villas while Wailea Point has seen no activity. Currently, Wailea and Makena have an outstanding inventory of almost 120 condominium units. They are averaging 122 days on the market.

While so few data points makes any analysis necessarily tentative, the following seems to be happening. The true "trophy" market remains robust with the sale of three Wailea Beach Villa units. The whispering around new oceanfront projects like Maluaka and the Wailea Beach Resort suggests strong demand for both which is likely taking demand away from existing oceanfront projects. Buyers generally remain cautious and very selective. Properties in up-to-date condition are being valued better than properties needing updating.Sellers must make their property's a perceived "deal" in order to attract attention, showings and offers. Also, in today's market, heavily occupied units in vacation rental programs are a very difficult sell. In short, if it cannot be shown, it cannot be sold.

Wailea sellers generally seem very sanguine and unruffled by this market. As one would expect of a very well heeled group of property owners, they seem generally unwilling to sacrifice price at this time. While clearly certain owners dramatically readjusted price in order to obtain a sale, they have been the exception.Most are acting on the belief that Wailea property is a special asset, should be valued as such, and if it isn't being now, it will be in the foreseeable future. owners seem to be under no pressure to sell. This contrasts heavily with what is happening in Kihei, where major price reductions are very common at the moment.

Tom and Sean have a marketing plan to address this choppy market. In Wailea,  our listings in Wailea Beach Villas, Palms at Wailea, Grand Champions, Kanani Wailea and Wailea Point remain among the most well priced and attractive properties on the market.

To discuss any of this further, please contact us!