For generations, Maui has been enthralling visitors with its boundless natural beauty, top-rated beaches, world-class amenities, and a laid back lifestyle with Aloha. And with every 'Best Island in the World' or 'Best Destination in the World' recognition, more and more are finding the charming ways of the Valley Isle. With more attention comes increasing interest by potential buyers, hoping to purchase their own piece of paradise. But as diligent buyers are well aware, the national real estate landscape has been deeply affected by the recession and continuing worries about the global economy.

So how is Maui doing in the current marketplace? It is upholding its well-deserved reputation as a long-term equity market by showing significant improvement year over year. Of particular note is the luxury sector. Affluent buyers are flocking to Maui yet again and it is reflected by some impressive statistics. In 2009, there were four sales of single family residences over $5 million, with 2010 showing a marked improvement with 10 sales. Yet 2011 has already seen 13 sales and additional sales may materialize before the end of the year, marking an incredible increase among the Maui luxury market over a 2-year period.  In addition, the North Shore experienced a record-breaker of its own in 2011 when a Spreckelsville beachfront property was sold for $9.65 million, easily surpassing the North Shore $5.85 million high mark set in 2007 (arguably the very peak of the market).  And last to illustrate the state of the luxury market, the highest amount ever paid for a property on Maui occurred this year, with co-founder of Paypal, Peter Thiel, purchasing a Makena property for an impressive $27 million (the very same property last sold in 2007 for $19.2 million). Consequently, 2011 has proven that high-end buyers are back with confidence. Only time will tell if 2012 will sustain this upward trend, but anecdotal evidence is leading that way.

This blog post is provided by Alex Cortez, a Maui Realtor with Island Sotheby’s International Realty specializing in Wailea Real Estate. Follow his Maui real estate blog for up-to-date market information.