In South Kohala, single family home sale prices range from entry level $200,000 homes to multimillion dollar homes in exclusive resort neighborhoods. I do not usually lump them all together, but because I wanted to look at the past three years, I thought it would be interesting to see the average sale price of all homes.
The question I am asked most often “is this the bottom of the real estate market?” I reply we can only look at the past to try to answer that question. It also helps to pay attention to what economists are saying and what the hopes and fears are about the stock market. In our South Kohala luxury real estate market here on Hawaii Island, the stock market is a big factor in the decision making process as that is where most of the cash comes from.
I will hold an open house at the Ka Milo condos at least once a week, for a couple hours mid-afternoon. Please call me for dates and times. Hope to see you there! Location: Ka Milo, Mauna Lani Resort, Kohala Coast, Big Island Hawaii. Asking price: $1.495M.
Ka Milo, open house, Mauna Lani, Kohala Coast, Big Island, Hawaii
Neighborhood Profile
Most weekday mornings I can be found at my desk in the beautiful Mauna Kea Resort working away. When hotel guests stop by to say hello and talk real estate, they are typically surprised to find two bedroom condos, some on the fairway, all with ocean views, well under $1M. Today the asking prices for those Kumulani condos start at $550,000. Located within Mauna Kea Resort, Kumulani is an amazing value for tennis, golf and beach buffs.
January through October 2011 Kohala Coast condo sales are up 36.6% and prices are down 7.7% over January through October 2010.
Third quarter 2011 Kohala Coast condo sales are up 25.5% and prices are down 9.1% over third quarter 2010.*
October 2011 Kohala Coast condo sales are down 36.4% and prices are down 29.8% over October 2010.
January through October 2011 Kona condo sales are up 9.4% and prices are down 21.8% over January through October 2010.
Third quarter 2011 Kona condo sales are up 5.5% and prices are down 9.1% over third quarter 2010.*
On the front page of West Hawaii Today, Tuesday October 18, 2011, the second lead story headline blazed: Home Sales Dip… Hmm, that doesn’t sound right. Using Hawaii Information Services data, my research since late 2010 has found home sales climbing in North Kona and South Kohala while prices continue to slip.
So I expanded my research to include all West Hawaii single family and condo sales from South Kona to North Kohala, January through September 2011 vs 2010. Again, my research still found sales for improved residential higher this year than last: 999 to 859. The 2011 January-September median sales price was $323,000 compared to $344,000 last year.
Not only the wealthy are actively buying West Hawaii real estateWhat got me digging into these records were recent news reports that Mercedes Benz unit sales in the United States recently broke a record; an Italian handbag retailer experienced difficulty keeping its $1,000+ handbags on the shelves; and the top two luxury purchase types by wealthy consumers were either a $1,000+ case of wine or piece of jewelry.
Lawrence Yun, the National Association of Realtor’s Chief Economist, said last month that homes sales will rise this year. Well, those of us familiar with Kona and Kohala Coast real estate here on the Big Island took this as old news. Real estate isn’t just local, these days it is hyper-local. What’s happening in Puna is completely different than what’s happening in South Kohala. When I talk to mainland residents looking to buy a vacation home, they often incorrectly assume what’s happening in their local market is what’s happening in our market.
April-June 2011
There’s been significant activity at Mauna Kea Resort lately. Here are the second quarter property sales:
1. $640,000; 2/2; Kumulani condo #B3; located on golf course with ocean view
2. $909,500; 3/2; Wai’ula’ula condo #M202; located on golf course with ocean and Maui views
3. $1,300,000; 3/3; Moani Heights residence #8; located on golf course with ocean and Maui view
4. $1,525,000; 3/3; Moani Height residence #9; located on golf course with ocean and Maui view
5. $2,600,000; 4/3.5; Kauna’oa condo #1A; ocean view
6. $2,400,000; Kauna’oa lot #6; located on golf course with ocean view
7. $1,500,000; Mauna Kea Fairways North lot #12; located on golf course with ocean view
8. $2,000,000; Mauna Kea Fairways South residence #3; structure is either a tear down or will be a demolition remodel with an outstanding ocean view
9. $1,350,000; 2/2.5; The Villas at Mauna Kea condo #37; original 1987 condition with ocean view
For the past two years, nobody was buying Kohala Coast, Big Island real estate. Well, a few people were, but so few that escrow companies, lenders and real estate firms lost many employees and agents. That all changed in December. Buyers are back, especially for affordably priced homes. Ours are typically second home buyers, but lately, it’s the locals who are buying. That doesn’t mean there aren’t any second home buyers. They are shopping too, and the Kumulani neighborhood is a good example of where they are buying. For a list of recent Kumulani sales, please email me a request.