There has been a lot of real estate sales activity at Halii Kai in the 3 months since my last blog post about this oceanfront condo community at the Waikoloa Beach Resort on the Kohala Coast.
On the resale side, the only condos that changed hands were the two REO properties described in my June blog post: an absolute oceanfront two-bedroom 13A closed for $814,995 and 16C for $385,900. Unbelievable prices-less than half what the original buyer paid.
The developer is willing to negotiate on their remaining inventory to keep pace with market interest, although it appears only on condos in the Coconut Grove area at the back of the property. As the landscaping has filled in, the Grove has turned out to be a sweet, calm oasis, and the units with north-facing lanai have a view of sunrise over Mauna Kea. Prices are also sweet compared with the golf and ocean view.
Two closings so far this month, both two bedroom floorplans: the larger one, 1317 sq feet, sold for $499,000 and the smaller, 1082 sq ft, for $405,000 (one of the few B/C with a garage). There is also a third one in escrow with a list price of $425,000.
The sweet spot in the market more generally seems to be under $500,000. I must have a dozen prospective buyers I am working with who read one of my blog posts about Halii Kai or Kolea, or saw my short sale listing at Kolea. They either have cash or big down payments, and are mostly future retirement buyers. A surprising number do not plan to rent except possibly to friends and family.
Speaking of short sales, there are no offers on Halii Kai 14C, an oceanfront 2-bedroom listed as a short sale at $750,000, because savvy buyers were waiting for the event that occurred today. The mirror-image unit Halii Kai 14B has arrived as an REO at $755,900. Let me repeat: this is absolute oceanfront, Maui view!
What comes next? There are only a few more developer units at the $500,000 and under prices, which means the next "best buys" like this foreclosure 14B are a higher price points.
There was a front page article today from Inman News, a subscription service for real estate agents, with the headline “Where are the luxury buyers?”. The article gave a statistic of interest: According to the National Association of Realtors, the national share of home sales above $750,000 has fallen from 4.4 percent in 2007 to approximately 2.3 percent in 2009, and the months' supply of inventory has risen from 18.7 months to 41.1 months during the same period. However, the article also speculated “If you have a spare $1 million to $2 million in your wallet, this could be a good time to buy.”
They are correct, because the supply/demand balance and the sales of distressed properties puts downward pressure on prices for those who need to sell. The article also made the point that there are market segments where owners will simply wait it out and not sell at these prices. The article interviewed agents in the Hamptons and Santa Barbara. They might just as well have interviewed owners at Mauna Lani Point—or several owners I know at Halii Kai and Kolea!
In my opinion, that means that luxury buyers who are sitting on the sidelines waiting for a penthouse at Halii Kai or Kolea to hit the market at REO pricing are likely to be disappointed. Those owners will do what it takes to hold on.
A hui hou,
Beth Thoma Robinson R(S)
Direct: 808.443.4588 Email: beth@hawaiilife.com
Search the MLS at Hawaii Life Real Estate Services
Halii Kai 12H is a 3 bedroom, 2 bathroom deluxe ocean view villa. The moment you walk in the villa you will enjoy the view. As you walk in the kitchen is located on the right. The gourmet kitchen is well stocked for all of your dining needs during your stay. Enjoy stainless steel appliances and granite counters. The dining area is just off of the kitchen and has seating for 6.
