KAU Land Sales from November 2002 to November 2007

By
Real Estate Agent with Local Hawaii Real Estate

Below is a graph that shows the number of the parcels which sold in the Kau District of the Big Island of Hawaii.  The data are over the last 5 years, starting with November 2002 and ending with November 2007.  (Source:  Big Island MLS)

 KAU Land Sales from November 2002 to November 2007

John Petrella, ABR®, GRI, Principal Broker

Direct: 808.640.3953
Local@LocalHawaiiRealEstate.com

Local Hawaii Real Estate
Honesty • Integrity • Commitment

159 Keawe St., Suite 1
Hilo, HI 96720

REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

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Rainer
250,048
Venturi Realty Group
Albuquerque, NM
Albuquerque's Trusted Real Estate Team

Hi John,

Interesting information.  So the number of land sales are down...how about the price of the land?  I assume it's gone up.  Thanks for the nice info.  Tracy

Jan 13, 2008 12:17 PM #1
Rainmaker
322,819
John Petrella
Local Hawaii Real Estate - Hilo, HI

Hi Tracy,

Sorry to report that our sale prices continue to decline.  On the bright side:

our current market is alive and healthy (since the beginning of the year 96 homes have sold and 94 parcels have sold). We are working at less volume and lower prices.

In my opinion, we peaked around April or May of 2005. Two major forces brought about this peak and subsequent downward trend. Boomers and easy money. In review the boomer years are from 1946 to 1964. The easy money seem to have started around 2001 or 2002.

The leading edge that lead to this peak was caused by the boomer generation when they discovered the relatively low prices we had. They started a buying frenzy back in 2004. They had easy money from what I
call warm body or 98.6 degree loans, or from equity they had from pulled out of their over appraised homes in the eastern 48. ("warm body or "98.6 degrees" seemed to be the only qualifications needed to obtain a loan from any lender). When the easy money dried up the demand went down. When demand went down, volume went down taking prices down also.

What makes Hawaii now very attractive to Europeans are: our home prices are down about 34% AND the US dollar is down by about 23%. In other words when we compare Hawaii land and homes in April of 2004 to our current prices we now at a discount of about 57%!

We are now seeing interest from Australians and Canadians. Most seem to be purchasing raw land. Some purchase a small home.

By the way, the Big Island is home to a major university and several of the leading telescopes in the world. Researches work in Astrophysics, Astronomy, Marine Biology, Volcanology and Agriculture. We have two
international Airports. We export scores of varieties of orchids, 12 kinds of antheriums, real vanilla, papayas and other agricultural produces. Because of Capt Cook England had a very heavy influence on Hawaii. Our culture includes the original Hawaiian Merrie Monarch Festival, a Paniolo cowboy culture that rivals the cowboys on the main land, a Japanese Culture, a Filipino Culture, a Chinese Culture, and a Portuguese Culture. Transplants like me come from all over the USA and world. We have black sand, green sand, and white sand beaches. Our land starts at sea level and goes to about 4200 Meters or 13,796 ft. It
is said we have all but one of the climates in the world here. Today we have snow on our two mountains.

So please spread the word!

 

John Petrella, REALTOR®
ABR®, GRI, Principal Broker

Local Hawaii Real Estate
Honesty • Integrity • Commitment

Direct: 808.640.3953
Email:  Local@LocalHawaiiRealEstate.com
Web:  www.LocalHawaiiRealEstate.com


REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is Member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

 

Feb 02, 2008 12:06 PM #2
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Rainmaker
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