Kahala, one of the finer neighborhoods on Oahu, has some interesting numbers to point out.  I've been studying Kahala for a long time and wanted to bring your attention to some things that may interest a few of you buyers and sellers out there.

First off, did you know Kahala just had it's first sale under $1,000,000 since 2005?  It's true.  The cheapest home to sell in Kahala since 2005 just recently closed for $980,000.  Right now the least expensive home for sale is priced at $1,250,000. 

Of the 50 homes that are currently for sale 21 of them (42%) are priced between $1.2M and $3M.  The remaining 29 (58%) are priced from $3M to $7.45M.  There's nothing too surprising about those numbers, because Kahala does offer a nice balance between a typical residential suburbia feel and higher end ocean view or oceanfront homes.

What makes those numbers stick out is that all of the five currently "Pending" homes are listed from $1.3M to $2.5M.  It's not hard to do the math on those numbers at all.  There are zero homes above $2.5M that are under contract.

If you go back and look at all of the "Sold" properties since 1/1/08 you will see that 14 (77%) of the total properties sold were priced from $980k to $3M.  That leaves a total of 4 properties sold, for the first half of this year, that were priced from $5.2M to $6.5M.  Nothing in between $3M and $5.2M has sold at all this year.

What does this mean?  This data points directly at a residential based buyer here on Oahu that is still looking for a nice property that is affordable (by Kahala standards).  It also points out that the very high end of Kahala real estate is still somewhat alive, but the current situation may be slowing more.  However, if you are a seller that has a home that falls between $3M and $5.2M the market is not on your side right now.

Opportunity is the key in real estate!  I will address the following price ranges and situations and where you might be able to fit in.

Everything under $3 Million - This is by far where the biggest pool of buyers are.  The key to buying in this range is quality and location.  Most buyers in this range are looking for a home that is newer or has been remodeled recently (note, buyers in this range will sacrifice location more for quality and appeal).  As many of you do know, Kahala has a good supply of properties that need to be remodeled.  If you can find a property that has potential, good location, and some nice characteristics you may want to think of buying a fixer.  The potential gains and ability to customize your own home may be what works best for you.  Sellers, focus on making your house presentable and doing all the things you can to point out the good features of the house.   However, I would like to note that you may want to give remodeling a second thought if you don't plan on doing a full remodel.  Partial remodels don't always attract buyers.  Don't expect buyers to pay for a brand new kitchen when the rest of the house screams 1960's.

$3 Million to $5.2 Million- This is what I like to call the area of opportunity.  The buyers in this range right now are practically non-existent.  If you are a buyer in this range you should be smiling with the opportunity that may lay before you.  Sellers are a lot more "accommodating" when you are the only one that is walking through their home.  You are in the range where you are above Kahala's definition of affordable and you are not quite at the very high end of what Kahala has to offer.  I'll admit that this range has its fare share of overly optimistic sellers.  Opportunity is all around... maybe look for the very high end property that has fallen from the top due to some characteristics that the seller never remedied or that you could easily remedy.  Such as, an ocean view home who's ocean facing side has very few windows.  Remodel that side of the house and add instant value by putting in larger more expansive windows.  The key here is to capture the view that the house never has done before.

$5.2 Million and up- If you are going to pay top dollar make sure the stars are aligned before you buy.  The traffic on this range is existent, but slow.  Finding buyers in this range with the money to buy can be difficult.  Sellers, make sure your home is top notch and do everything you can to increase the views and add more privacy.  Buyers, Kahala has some of the finest oceanfront homes you can imagine.  Enjoy the process and find the home that constantly reminds you of how good it is to own a home in Hawaii.

I would be honored to help you with your real estate needs, whether you are a buyer or seller.  I specialize in going above and beyond for my clients and will make sure that your experience is not only a success but also enjoyable.  Mahalo!

Brought to you by:  Rob Gerichs - RE/MAX Honolulu

Going Above and Beyond

(808) 284-4441 ~ www.HawaiiRob.com ~ Rob@HawaiiRob.com

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