Prices for foreclosures in Kihei put the Maui condo market in a virtual time machine.
Today’s investors are finding that Maui condo ownership has once again become an affordable pathway to retirement in paradise. The Kihei Bay Surf, a vacation rental approved property in North Kihei, across the street from Maui’s longest crescent beach, has recent activity in the $110,000-$125,000 range.
I moved to Maui in 2001â€”the decade seems a hundred years long in real estate years, with all that has happened. Looking back at 2001 prices, and comparing them with a plentiful and potentially profitable lower end condo market dominated by REO’s, the numbers are indeed interesting.
As I write this, there is a staggering total of 23 condos in Kihei listed at $150,000 or less. Nine of them are bank-owned condos, and 7 are short sales. They are more attainable than ever: the bank-owned foreclosures are processing from escrow to deed in 45-60 days with regularity, and in the next 60 days, short sale procedures and transactions will undergo procedural changes that will greatly reduce the frustration, and deal survival rate.
Here’s a thumbnail look at the condo inventory listed at $150,000 or below, along with a sample MLS link for one of the listings at the property, and a look at prices in 2001.
Haleakala Gardens: Located in North/Central Kihei. On beach side of Kihei Road, but beach in this area is inferior to South Kihei beaches. The only 3-bedroom option in this price range. Maintenance fees are a little racy at $527, in my opinion. Still aÂ value inÂ for a long term rental (no vacation rentals allowed). 2B and 3B units here are approx same sq. (880-900). ft. No pool.
- Three listed, 2 foreclosures, $137,000-$140,000 (MLS# 344409).
- In 2001: 23 sold, median price $140,000.
Keonekai Villages:Â Located Southernmost Kihei, best location for beaches. Near Kamaole III Beach, great beach. Property has 256 units, but is landscaped in such a way to provide excellent privacy and greenery if you buy the right unit. Some private back yard lanais, and a lot of long term resident owners. Across from a park. No pool. No vacation rental, but a good long term rental. Rent brings $1100-$1300 monthly typically.
- One bank-owned foreclosure listed, $149,000 (MLS# 345417).
- In 2001: 48 units sold, median price $149,700.
Kihei Bay Surf: North Kihei, all Studios, approx 450 sq. ft. Located right across the street from Sugar Beach and the Whale Sanctuary. Property is on the upswing, with a lot of cosmetic improvements lately, etc. Very nice pool and spa in this price class. Vacation rental approved property, giving owner more flexibility for personal use, and potential for better revenue stream than long term rentals. It is on the low end, and many owners do very well with this property pricing it at $60-$70 per nightÂ â€” there isn’t much in Maui you can rent for that rate. Although listings now reflect $140-$150 range, recent REOs have sold in the $115-$120 range. If you can buy here in that range, I believe there is strong value here for an upside/investment property.
- Six units listed, $138,000-$149,000 (MLS# 340812), with recent activity in the $110-$120,000 range.
- In 2001: 10 sales, median $119,500.
Kihei Shores: Located South Kihei. Some of my buyers find it a little rough around the edges, but a GREAT location, right across from Kamaole III Beach. There were rumors of this property going vacation rental, but has not come to pass. Long term rental. Small pool. Recommend you stay away from the DG units (subterranean)Â â€” they were difficult sales even in the boom market
- One listed, $135,000 (MLS# 345334).
- In 2001: 10 sales, $119,500 median.
Kihei Villages: Nicely kept property, located northernmost Kihei, easy walk to beach and park. One of the largest properties on Maui. Long term rental only, no vacation rental. No pool. There are deals here. REO listing at $99K will likely not get done at that price. Expect to pay in the $120K range for a great buy on an REO.
- Five listed: two bank-owned foreclosures, and three short sales, $99,000-$120,000 (MLS# 345415).
- In 2001: 48 sales, median $110,000.
Southpointe: North Kihei, near beach. Long term rental only. No pool.
- Seven listedÂ â€” four bank-owned foreclosures, and three short sales,Â $95,000-$135,000 (MLS# 343146).
- In 2001: 34 sales, medianÂ $105,750.
Kevin Spaise is the Publisher-Author of The Maui Condo Book, the 450-page property reference directory used by Realtors, Brokers, title-mortgage companies, and other real estate professionals on Maui. When in Maui, stop by The Grand Wailea and visit with him about real estate — he is there representing Ho’olei, Maui’s newest luxury resort property, Tuesday through Thursday 10 am to 5 pm.