It's time for an update on the real estate market in Maliu Ridge, the desirable subdivision of homes on small acreages near Hawi in North Kohala. Almost two months have passed since the lastest Maliu Ridge luxury foreclosure (REO) was listed for sale.
I thought the foreclosure was a best buy at the listing price of just under $800,000, considering that it sold in 2008 for $1,275,000. However, neither it...nor any other home for sale in Maliu Ridge...has had an acceptable offer since then. So the bank just keeps inching down the price. It doesn't help that their listing photos were taken on a dreary day and do nothing to show the charm of the landscaping. Here's a better photo from the previous listing:
The charm of this Maliu Ridge home is in its landscaping and potential for extended family or caretaker cottage.
Now the asking price is only $767,100 for over 2,200 sq ft on 3 ocean view acres (and the square footage really understates the potential as there are two bedrooms in a separate cottage as well as the two in the main house).
The most recent residential sale at Maliu Ridge closed at the end of 2010 for $773,000.
But that's not the only update, as two of the other listings have continued their price war. Two homes have 2800 sq ft, three bedrooms and great ocean views, and they are priced neck and neck at $649,000 and $699,000. At these prices, one of them is sure to sell quickly.
The real news for the current Maliu Ridge real estate market as I see it is that the homes for sale are priced way below replacement cost.
Here's an example. A 3.99 acre lot in the same Maliu Ridge cul-de-sac as the foreclosure house sold for $440,000 last year. At the foreclosure's listing price that leaves only $100/ sq ft to build a home, and on the Big Island it is fair to say that even package home construction works out to around $250/sq ft...and that's not counting all the money invested in this home's beautiful landscaping.
In my view, every one of the listings at Maliu Ridge is currently a best buy. Big ocean views, acreage, underground utilities, no HOA dues...and prices we've not seen in this Hawi neighborhood since 2004.