Maui Million Dollar Home Sales ($1.0M+) – Day 3 of 10 – “How Big Are They?”

From January 1, 2012 through September 16, 2013, a total of 231 “million dollar plus” homes sold in Maui County, generating total volume in excess of $525 million.

There are many ways that Hawaii real estate appraisers analyze sales statistics for luxury homes.  Because a proper market study for this segment would run many pages, I am posting one article per day for ten days.

Day 3 of 10 – Maui Million Dollar ($1.0M+) Single Family Homes By Living Area

Consider the following graph and chart:

Maui Million Dollar Sales By Living Area

Maui Million Dollar Sales By Living Area

Maui Million Dollar Single Family Homes By Living Area
Sold From 1/1/2012 through 9/16/2013
Living Area in SF # of Sales % of Total
0-999 5 2.2%
1000-1999 32 13.9%
2000-2999 68 29.4%
3000-3999 75 32.5%
4000-4999 28 12.1%
5000-5999 17 7.4%
6000-6999 2 0.9%
7000-7999 2 0.9%
8000-8999 1 0.4%
9000-10000 1 0.4%
Total 231 100.0%

Luxury homes having between 2,000 and 4,000 square feet of living area represent the “sweet spot” of the Maui luxury market, comprising more than 60 percent of the Valley Isle’s million dollar home sales since the beginning of 2012.

Bottom Line: Bigger Isn’t Necessarily Better

97.4 percent of all “million dollar plus” single family homes sold on Maui since 2012 have 6,000 square feet of living area or less.  While it is certainly possible to build larger residences, and some very wealthy individuals have, if you’re building much larger than 5,000 square feet, you might be going beyond what the market prefers.

Questions or comments?  Please leave them in the comment  box below, I would be happy to clarify and/or expand.

Aloha, Chris

Bonus  – Superadequacy

The data above suggests that building much larger than 5,000 square feet may not be consistent with market preferences.  If true, real estate appraisers refer to this phenomena as a “superadequacy”, which is defined below:

superadequacy

An excess in the capacity or quality of a structure or structural component; determined by market standards.

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010

About Chris Ponsar
I'm a commercial and high-end residential real estate appraiser in Hawaii. I'm passionate about appraisal and valuation issues in the same way some folks obsess over football, shopping, or bacon. I love this stuff.

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