This past week, Kaanapali has been making headlines with several milestones for this resort community in West Maui.
Kaanapali Beach seen from The Royal Lahaina Hotel
Kaanapali Named Best Beach in United States
There was a recent article in Tripadvisor that ranked Kaanapali Beach as the #1 beach in the United States based upon the traveler's choice. The article also ranked Kaanapali Beach as the #10 beach in the world. There were several other Hawaii beaches that made the list such as Hanalei on Kauai ranking #4, Ho'okipa on Maui #5, Lanikai on Oahu #15, Poipu on Kauai #16, Napili on Maui #17, Kailua on Oahu #21 and Hapuna on the Big Island #24.
There is a reason why Kaanapali was Hawaii's first planned resort. The white sandy beaches are something developers had the foresight and vision to make this such a unique place to be. In addition to Kaanapali Beach being ranked #1 in the US, there was also an oceanfront home that fetched over $20 million this past week.
Kaanapali Home Sold Over $20 Million
20 Kai Ala Drive Sold for $20,750,000 on March 8th
This was definitely a trophy property, which was situated on just under an acre and was zoned hotel, which allowed for short term rental. Although a large price tag, the home grossed $1 million a year in rental income. Just north of Kaanapali Villas, this section of beach is where the old Kaanapali Airport used to be back in the day and typically isn't as crowded as the beach south of Black Rock.
Although Kaanapali resort has been around for decades, the appreciation for its beauty is timeless and continues to be appreciated from travelers from all over.
Last month, we listed Castle Surf #61, which is the highly coveted oceanfront penthouse of this Gold Coast condo building at Diamond Head.
Castle Surf #61 - Oceanfront Penthouse
Word on the "coconut wireless" within the building got out before we hit the market and we got a cash offer that was "too good to refuse". Unfortunately, that buyer got cold feet and backed out. We then paused the listing and moved forward with our original plan of staging and getting professional photography. Shortly thereafter, we were able to put this beauty right back into escrow. You might ask yourself why something like this is so hot in such a cooling market? Here's some reasons why:
245 Square Foot Lanai with Panoramic Views
Panoramic Ocean Views from the Gold Coast to Waikiki
Castle Surf has some unique architecture. where the direct oceanfront units and the ones facing the park (the 2 bedroom, 2 bathroom units) have a hemisphere shape that allows for 180 degree views. Here, on this side of the building you not only get the gorgeous ocean views but you also get views along the Gold Coast to the east and towards Waikiki to the west. In addition to the sound of the ocean and enjoying the trade-winds and palm trees, you can also see the city lights in the eve and both sun and moon rises and sets.
Exotic Hardwoods and Travertine Throughout
Travertine Flooring along with Koa and Mango Wood Finishes
Throughout this luxurious unit, you have large travertine tiling, which makes it easy to clean up and maintain after a day at the beach (more on that later). In addition to the recessed ceiling, you have both Koa and Mango wood paneling and builtins through the living area. Although Castle Surf was built in 1960, the previous owner did a major remodel in 2012, prepping this unit for the next 50 years of living in luxury...
Beach Fronting the Castle Surf on the Gold Coast
Oceanfront Deck at the Castle Surf Overlooking the Beach
The Castle Surf is one of the few buildings along the Gold Coast that actually has a small sandy beach in front. Most of the buildings along the sea wall don't really have any sand. What's also nice is there's a private gate for residents to access the beach. There's also no swimming pool at the Castle Surf, which helps keep the maintenance fees lower. Why would you need one though when you have the beautiful Pacific Ocean right out the back?
Additional Perks of Owning this Unit
This penthouse unit also comes with 2 covered parking stalls, which is hard to come by on the Gold Coast. In addition, Castle Surf is a condo. Whereas the majority of the buildings on the Gold Coast are still co-ops. Condos are easier to convey, you can 1031 exchange into or out of them (unlike many co-ops) and condos are easier to finance (although most of our interest was from cash buyers).
Although we've had a ton of interest on this unit, as in all real estate dealings, it's not over until it is over. If you're looking for the right place on the Gold Coast feel free to contact David Buck or Mark Buck for more info. or if you own a Gold Coast condos and are looking to capitalize on the cash buyers in the marketplace, feel free to contact us for more information.
It's becoming more and more of a buyer's market here on Oahu. This is David Buck with Harcourts Island Real Estate and I'm here to report the sales stats of February of 2023 and if you want to stick around, I'll give you some pointers on how to navigate this market. If you are a buyer, or even for sellers to help get those properties under contract.
Single Family Home Stats
First off, we're going to dive into the single family home stats.We're once again seeing a trend we've noticed for well over 6 months in that sales volume or numbers of transactions are down from a year ago. To be specific, they are down over 28.2%. In February of last year, there were 241 single family home sales on Oahu and now this year, there's just 173.
We've also seen for the 2nd month in a row, the median sales price for homes dipped below $1 million. That's creating more opportunities for buyers. However, it's the largest year over year dip we've seen since back during the start of COVID. That median sales price now for a home on Oahu is $987,000. A year ago, in February of '22, it was $1,125,000. So, that's a 12.3% decrease in median sales price.
We're also seeing a bump up in Median Days on Market, which is another indicator of how long it is taking homes to sell. A year ago, it was taking just 13 Days to sell a house on Oahu. That is now up over 261% to 47 Days. Now, keep in mind the National Association of Realtors says that 60 Days on Market or less is still a seller's market, so we're not there yet to technically call it a "buyer's market", however we're trending that direction.
Condo Stats
As we jump into the condo stats, the condo market hasn't slowed quite as bad as the single family home market. That might have to do with affordability. Keep in mind, several years back condos were trailing homes and now it's taking them a little bit longer to correct. The number of transactions for condos were down as well. They were down 33.1%. A year ago, in February there were 486 condo sales on Oahu. This past month we only saw 325.
The median sales price is down just slightly, by 3.4%. That was going from $497,000 a year ago to $480,000 this year. We also saw an uptick in Median Days on Market, but not as severe as the single family homes. It was up 100%. That was going from 14 Days on Market to 28 Days on Market.
Tools to Help Get Your Property Sold
Now, to jump into that trend I talked about in the beginning, it's becoming more and more of a buyer's market. If you're a buyer in the market, there's way more to chose from. It is taking things a little bit longer to sell. For sellers, it's taking longer for reality to set in, however they also have to realize it's going to take things longer to sell.
One tool we've been seeing in some parts of the market is actually offering some seller credits to help buy down the interest rate of the buyer. So, that becomes a "win win" where the buyer can get into a property without a bidding war (hopefully). From the seller's standpoint, it's another tool to help them get their property sold.
Another tool we have to help get your property sold is something that only Harcourts can offer and that's our non-distressed auction platform.
If you want to check out HarcourtsAuctions.com you can find out more info. there as well. Thanks for tuning in for February's stats and we'll be up again later this month for the local market update. Mahalo!
Well, there's one section of east Honolulu that took the cake for January. This is David Buck with Harcourts Island Real Estate here to give you the local market update for January of 2023.
Local Neighborhood Report for Homes
There, we saw Aina Haina-Kuliouou with an increase by 20% in the number of sales year over year. That was going from 5 sales to 6 sales. Every neighborhood on Oahu, besides 3 was down regarding the numbers of transactions. That's a trend we've seen across the board. There were 3 neighborhoods that were flat or zero change. But, otherwise outside of that section of Aina Haina-Kuliouou, every other neighborhood took a dip in sales.
That same zone actually saw the largest increase in median sales price. So, Aina Haina-Kuliouou, which includes Niu Valley (behind me in video) saw that median sales price up by 70%. That was going from $1,350,000 to $2,294,000. As expected, when you see that bump up year over year in that zone, Hawaii Loa Ridge normally has more transactions, which was the case. Of the 6 sales that took place last month in that zone, 3 were on Hawaii Loa Riidge, 2 were in Niu Valley and the highest sale last month in that Aina-Haina-Kuliouou zone was actually in Niu Beach for $3.4 million. That was not a waterfront property either. It was on the interior of the circle. So, it was kind of interesting to see non-oceanfront in that zone trading higher than the sales up on Hawaii Loa Ridge. If you stay tuned, I'll talk more about the condos.
Local Neighborhood Report for Condos
Waimanalo-Kaliua saw the largest increase in sales year over year. That was going from 6 sales to 7 sales. That's a 17% increase year over year. 2 of the neighborhoods on Oahu saw zero change and the rest were down. It's kind of interesting to see the condo market following the single family home market in that just 1 neighborhood was up for transactions. As we talked about earlier in the month, sales for condos were down over 50%, as were homes in January. So, it's no surprise to see very little neighborhoods saw an uptick in the number of sales.
Regarding the median condo price on Oahu, surprisingly 1/3 of the neighborhoods saw an increase in median sales price (year over year). This was an encouraging sign, seeing as the median sales price across the board on Oahu was down just several percent. Of those neighborhoods that were up in January, Wahiawa saw the largest increase, which was up 91% going from $132,000 to $252,000 year over year. Now, keep in mind there were a number of trades that took place last year in January at a project called Hidden Valley Estates, where there's a number of leasehold condos. The land lease there expires in 2040. Normally, when you see a big shift like that, there's normally and explanation and hence that's the explanation.
I hope you enjoyed the report and to find out what's going on in your particular neighborhood, because every one is different, feel free to contact us for more information. Mahalo!
Which one do you like better? It's so funny, today I got a call from a buyer off my website and they were originally asking about the Marco Polo. I'm obviously familiar with the building and I just thought it was ironic that she was first asking about the Marco Polo, then later the Ilikai.
Family History with Both Buildings
For a little family history, my grandfather used to own some penthouse condos at the Marco Polo when it was first built. Then, regarding the Ilikai, that's what brought my (Mom's side) family to Hawaii back in the 60's, before my time. My Mom's stepfather was going to originally build that building in Marina Del Rey, California.
Pros and Cons of Both Buildings
In essence, I want to jump into the pros and cons of both buildings, because they are completely different, but they both have a lot of history.
The Ilikai in Waikiki
First off, with the Ilikai, it was built in the 60's and it's primarily know as a condotel building. It's zoned resort and you can rent it out short term. From a price point, they start at around a half million dollars for a 500 square foot 1 bedroom, which over the years, most of the partitions have been removed, making them essentially studios. That's the Ilikai and they don't come with parking.
For that same amount of money, you can jump across the canal and get into the Marco Polo. That is on the mauka (mountain) side of the Ala Wai Canal.
The Marco Polo Across the Ala Wai
There at the Marco Polo, you can get a 2 bedroom, 2 bath fee simple condo for that same price point. In both buildings, the prices go up from there. In both buildings you've got both mauka and makai views, so that's going to make a big difference on the price.
Past Turmoil at Both Buildings
Both buildings have been through some turmoil I've blogged about in the past. At the Ilikai, during the last downturn in the market, there was litigation going on at the Ilikai back in that '08 and '09 period. Buyers that bought then could only pay cash. Then, as the market picked up, there was no longer litigation on the building and financing came back into play and prices went through the roof there at the Ilikai.
Marco Polo Fire Burn Mark on the Building
The Marco Polo had some of its own turmoil as well in that there was a fire several years back and it was all over the news. First there was a fire, then later came litigation. Similar to the Ilikai, prices just cratered as none of the buyers could get financing. I predicted it, I blogged about this as well, that once the litigation was over and lenders started lending again, the prices rebounded. That is something to keep an eye out for in the market, outside of these two buildings. If you have a property that can't get financing and you're a cash buyer with some patience, over time once lenders come back into play, that could be a good play.
To find out more about the Ilikai or the Marco Polo, feel free to contact us for more information. Mahalo!
Both home and condo sales on Oahu were down over 50% this past month. This is David Buck with Harcourts Island Real Estate here to give you the monthly market update for January of 2023.
Single Family Home Sales
First we're going to start off with the single family homes and there we saw a 54% decrease in the number of sales year over year. A year ago we had 326 single family home sales and now we're down to just 150. So, there's less deals taking place. Unlike the last 4, 5 or maybe even 6 months we've been watching this trend of downward pressure on sales, but prices have been holding.
This is going to be the first month in awhile where the median home price is down. It's down 7.6%. That's going from $1,050,000 to $970,000. So, we're now under a million bucks for the median sales price on Oahu. We're starting to see more opportunities out there for Buyers. The median Days on Market are picking up. They've doubled from 12 Days in January of '22 to 24 Days this year.
We're starting to see an increase in inventory, which is up 77.2%. A year ago there were only 311 homes for sale and now there's 551, which is still relatively low. Prior to the last market cycle, back in '07 people thought inventory was low when we got under 800 homes. Now we only have 551 homes for sale on Oahu. That's something we're going to keep an eye on. Check out this infographic below and then we'll jump into the condo stats.
Condo Stats
Similar to the single family home front, condo transaction volume has actually been dropping down over 50% as well - dropping 50.2%. A year ago in January of 2022 we had 552 condo sales on Oahu and now we're down to just 275. Once again, there's less deals going around. this is a trend that's been in the 30-40% range drop over the last 4, 5 and 6 months. Now, we're seeing over a 50% decrease from January of last year.
As far as median condo price goes, it was down just slightly at 2.9%. A year ago the median sales price was at $510,000. Now, we're at $495,000. It's not a real significant difference. Keep in mind, that deals closing January were most likely starting in December, so traditionally, that can always be a slow month if you look historically. if you look at the graphs of home sales on Oahu. Because, people aren't thinking much about buying or selling during the holidays.
We'll see how things trend as we go forward. We're now into February. The median Days on Market was also up for condos, going from 14 to 24 Days. There's definitely some bidding wars going on in the marketplace. I've heard of some bidding wars on a house in Kahala. Both myself and one of our agents just got outbid on offers we were writing. So, there's still buyers in the marketplace, however pricing is very sensitive.
I am a little bit late getting the report out this month. Today is February 13th. I'm wishing you all a wonderful Valentine's Day tomorrow and I'll be up later this month with the local market update. Mahalo!
Spoiler Alert! Central Oahu led the single family home market for this past month on Oahu. This is David Buck with Harcourts Island Real Estate here to give you the local market update for for December of 2022.
Local Update for Homes
As you can see from the backdrop behind me with the beautiful pineapple fields, Wahiawa led that single family home market with a 17% increase year over year. That was going from 6 transactions to 7. Now, the scary part is Wahiawa is the only neighborhood on Oahu that actually saw an uptick in the number of sales. There were 3 neighborhoods where there was zero change whatsoever, but the remaining neighborhoods on Oahu actually saw a decrease in single family home sales. This is a trend we've been seeing across the board with transaction volume down. We talked about it earlier in the month, but prices are holding.
Keeping on that Central Oahu theme, Mililani saw the largest uptick, which was up 34% (year over year). That was going from $950,000 to $1,275,000. Once again, Central Oahu is leading the pack for resilience in single family homes.
Local Update for Condos
The current backdrop is Makaua Village in Kaaawa and the Windward Coast of Oahu saw the largest increase by far with the number of transactions for condos. That was going from 1 sale in December of '21 to 5 sales this year and that was a 400% increase year over year! There were only 2 neighborhoods on Oahu that had an uptick in transaction volume for condos (which was better than the homes, which only had 1). Makakilo was also up 25% and that was going from 12 sales in December of '21 to 15 sales this past month.
Our last topic we're going to cover in our local market update for December is condo appreciation. Diamond Head-Kapahulu saw the largest increase in median sales price, which was up 122%. That was going from $553,000 a year ago to $1,225,000. Most likely the reason for that was there were a lot more sales taking place on the Gold Coast (which is right behind me) vs. across the Kapiolani Park at Pualei Circle. There's a pretty big difference between those two segments of Diamond Head. Both are great locations. Just a little bit different price point.
That's a recap for December of '22. We're well into January with just another week to go. I hope you're having a great 2023 and feel free to reach out to us. Every local market is different. Some are up and some are down, but across the board we are continuing to see that trend of less sales volume, but prices holding a bit stable. Mahalo!
A Vladimir Ossipoff home on Hopeloa Place in Puupanini hit the market recently. This is the first time this home has been for sale in many decades. Situated on a cul de sac, this architectural treasure is a decent price, considering the last few sales in the neighborhood.
Here's some examples of some recent sales in Puupanini:
4349 Puu Panini Ave. Sold for $4,350,000 on May 11, 2021 (House Since Torn Down)
3258 Puu Panini Ave. Sold for $3,025,000 on February 4, 2022
4320 Puu Panini Ave. Sold for $4,650,000 on October 28, 2022
The great room in this Ossipoff home features an open beam, high ceiling and traditional thin cmu brick wall indicative of Hawaii mid century modern architecture. Ossipoff also was a fan of natural lighting and ventilation. Here are some of the other cool features:
Mid Century Porte Cochere and Entry to Ossipoff Home
The covered porte cochere driveway and stairway are also cool mid century modern features of this Ossipoff home.
Galley Style Kitchen
The home also features a galley style kitchen with lots of built in cabinets and storage.
Covered Lanai w/ Circular Posts
There's a nice covered lanai space by the swimming pool with metallic circular posts that were seen in the mid century style of the 1950's. With an over 12,000 square foot lot, there's a lot of space for indoor/outdoor living, which Ossipoff incorporated into his architecture.
The 2023 Sony Open is underway again this week at Waialae Country Club. I took 2022 off covering this topic since there weren't any homes for sale on the golf course last year. Whereas in years past, there'd at least be several. In 2021, there were 4 homes for sale fronting Waialae Golf Course. This year there is one listing for sale that just fell out of escrow:
951 Kealaolu Ave. (MLS # 202221213) is listed for $3,295,000
Although you technically can't walk out on to the golf course, the views are amazing. There's a canal buffer for both privacy and stray balls. This is also a nice value in that the original list price was $3,800,000. It's also priced over $300k less than a home I sold in September that wasn't on the golf course for $3,600,000.
Home on Waiholo St. Sold in Sept. '22 for $3.6 million
Unlike in 2021 when the listings were in Waialae Golf Course and Kai Nani neighborhoods, this home is technically in Kahala in MLS. What's nice about this location, is you don't have to get onto Kalanianaole Hwy. You can also stroll down Kealaolu Ave. to Kahala Beach Park and Waialae Country Club from here.
As we head into the weekend, we're blessed to have wonderful weather on Oahu this week. I hope you enjoy the tourney and it will be interesting to see who comes out on top. If you're looking for a golf course frontage homes on Oahu, feel free to contact us for more information.
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