Kihei, an unincorporated town on the Hawaiian Maui island, is located on the shores of Maalaea Bay on the island's western shores. It is estimated to be home to a population of around 20,000. A number of apartment and condominium complexes are found along the stretches of Kihei's beaches, which extend for about seven miles along the ocean.
The Kihei real estate market, like the market in too many other island communities, has seen its structure upended over the past couple of years as it has been faced with dealing with the fallout from the financial crisis that erupted on the mainland and later spread across the country to the many housing markets. Many homes saw their record-high values plummet, and the number of foreclosures in Maui rose to levels not seen in years. This year has seen some improvements in the market, but it remains unstable and has yet to level out completely.
According to monthly statistics compiled by Maui real estate specialists, in July, the number of single-family Kihei homes for sale that ended up with buyers closed in at seven, down from the prior month's figure of 11 but up from a year ago, when there were just five. The median sales price in July was $700,000, up substantially from both a month ago -- when it was just $450,000 -- and a year ago -- when it was $397,000.
The condo market is the more active sector of real estate in Kihei, since the number of condos is greater than the number of homes in this town. There were 31 condos sold in Kihei in July, off slightly from June's 34 sales but besting figures from a year ago by five. The median price, meanwhile, was up to $290,000, up nearly $30,000 from June's figures and more than $33,000 higher than that figure from July 2009. So far this year, 234 condos have sold in Kihei, much higher than at the same time a year ago, when only 126 condos had changed hands. This suggests the market is moving more as an increasing number of buyers jump into the market and are able to secure financing for their new properties.