Last week I returned from a short Moloka'i neighbor island vacation to a crashing stock market. I was glued to CNN for two days. I was at the office on Saturday (with the CNN live video feed on my monitor), and I saw an interesting Pacific Business News article in my inbox: "Home sales volume falls across the state, but prices hold steady." I was doubtful. Yes, resort home and condo prices are pretty much holding steady, but what about the other neighborhoods? I have been watching prices slip in North Kona and South Kohala.
To determine which price points are relatively hot, I took a look at what properties are currently under contract in South Kohala. This area includes the Big Island's Kohala Coast and its luxury resort and second home neighborhoods. It also includes the two large primary resident neighborhoods of Waikoloa Village and Waimea (aka Kamuela).
The price point most condos are selling at is $250,000 to $350,000. Most single family homes are selling in the $400,000s. Yes, there are pending sales all around these prices, but these numbers were most numerous in their respective bells curves. I expected them to be mostly short sales, or pre-foreclosures. But this is what I found:
Of the 15 pending condos, four are short sales and six negotiated developer incentives. When it comes to condos in South Kohala, the Seller concessions appear hefty enough to get Buyers to buy, even during our volatile 2008 market conditions.
Of the 25 pending single home sales, three are short sales and five negotiated developer incentives. The large majority of these pending home sales are not distressed properties. I was surprised by that. Most of the 25 homes are located in Waikoloa Village, which both local residents and second home owners like. The Village's 15 minute drive to the nearest Kohala Coast beach, activities, shopping and good restaurants is most likely a key reason. The next most popular "affordable" neighborhoods are leeward and windward Waimea. I recently learned that the Robb Report named Waimea as one of the 10 most desirable places to live in the country in 2000.
Regarding Kohala Coast luxury homes, defined as those listed above the area's median sales price, there are three pending condo sales and four pending home sales. The pending luxury condo price range is $1.8M to $4M. The pending luxury single family price range is $3.4M to $9.5M. Since my primary market niche is resort luxury, my educated guess is there are considerable concessions being negotiated for these homes as well.
Overall, though, I agree with Friday's Pacific Business News article. Hawaii real estate is holding steady. Yes, sales volume continues to slip, but because so many homes were purchase with a lot of cash, the state's real estate market is in a pretty good position. That said, for those who purchased at the end of the recent boom, now is a great time to seek out those Sellers and discover who is truly motivated. If your dream is to "live Hawai'i," this is a good time to ask your trusted Realtor to start identifying the opportunities. If Big Island Hawai'i tennis and golf resort properties are high on your list, I have the data you need for your favorite neighborhood or price range. Aloha nui!
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