Get ready for the Maui real estate market to get more expensive in 2017.
That’s because Maui’s real estate agents and developers are expecting the average price of a condo to increase from $1.3 million to $1,500, which is almost double the average condo price in the county.
“The average condo is going to go up from $500,000 to $650,000,” said David Pogue, president of Maui-based Landmark Properties.
Pogue, who is president of Landmark’s real-estate agency, said the real estate industry will be on edge for a few weeks because of the recent changes.
“We’re going to be at the forefront of trying to get the condo up to $500 million or $650 million,” Pogue said.
A condo is a luxury condo that includes a bathroom, common areas and living room.
The condo is not considered a house or condominium.
Pote said that the increase in the price of condos will be reflected in the sales and rental prices for Maui properties.
That means it will take longer for a buyer to move in and make a profit.
“We’re looking at the median sales price for a condo as $800,000.
If that stays the same, that’s going to translate to a very good return on investment for a real estate investor,” Pote said.
Maui’s housing market is a good example of the type of growth in real estate that is occurring, Pogue added.
A new home can sell for up to 10 times the price a similar house in the same area.
Mulberry’s office building in the Bay View area is one of the few new homes in the area, which has been seeing a surge in condo sales.
The building’s current owner, The Colony Development, is planning to build an apartment complex next door.
Poe said it’s important for developers to prepare for this type of price increase.
“I think developers should anticipate that we are going to see a lot more of these kinds of things in the next couple of years,” Pog said.
“There’s going in part to be a shortage of new houses, condos and apartments,” Pue said.
The state is also expecting to see an influx of new homes.
The Maui market will also likely see an increase in single-family homes.
The median single-story home in the state was $200,000 in 2017, according to the National Association of Realtors.
The market is expected to be much more expensive because of a shortage in single family homes.
“The single-income home market is very volatile right now,” Pape said.
For the most part, the average new home is not expected to sell for much more than the average single-unit condo, Pote noted.
“It’s not going to last much longer than the typical condo,” he said.
Potes goal is to see Maui property sales increase by 40 percent this year compared to last year.
The Maui housing market will be one of those markets that are likely to see more new sales and more condo sales, Pue predicted.
“There’s a lot of potential to see that trend continue.”