Kaanapali housing market

The Kaanapali housing market, part of the larger Maui real estate market, showed signs of improvement even as large projects were being sold for drastically reduced prices. According to a June 14, 2010 article from Pacific Business News, “Sales of condominiums in Maui County doubled last month, while sales of single-family homes rose 35 percent. There were 104 condo units sold in May, including two on Molokai, which was 100 percent more than the 52 units that sold in May 2009, according to the Realtors Association of Maui.” The piece went on to state that “There were 81 single-family houses sold on Maui alone last month, a 35 percent increase compared to the 60 homes that sold on Maui, Lanai and Molokai during the same month last year. Prices, however, didn’t follow suit. The median price for a single-family house was $442,000 in May, an 8 percent decline from the $482,500 in May 2009.”

The overall housing market in Maui also started to see some improvement, which is good news for the Kaanapali real estate market. A May 20, 2010 article from the Lahaina News stated that, “The market is starting to turn, indicated by the increase in unit sales. While the Homebuyer Tax Credit program has ended, the resulting sales (closings) through May and June will show in the next two months statistics.” The piece went on to state that “Anecdotal evidence from agents, lenders and escrow personnel indicate that a good portion of the transactions in process (not yet closed) are outside of the tax credit program, and that there is strong buyer-showing activity that should result in future sales. Condo median prices are showing some small upticks.”

The overall economic picture of the island reflects uncertainty for the future of Kaanapali real estate. According to a June 8, 2010 article from Hawaii News Now, “The latest state report on tax revenues and building permits shows a decidedly slower economic recovery on neighbor islands than on Oahu…General excise tax revenues, the single strongest indicator of consumer and business spending, fell 4.4% statewide in the first quarter…”