About Hawi's Maliu Ridge

As summer 2011 arrived, homes in Maliu Ridge, the upscale community above Hawi, North Kohala, began to find buyers.

In May I reported that the Maliu Ridge home under contract was the first to sell since January. Since in a typical year, two homes in this area, that did not bode well for the other five homes for sale. But suddenly it seems that buyers have recognized the Maliu Ridge price war brought these Maliu Ridge homes with their big ocean views and peaceful rural Hawi location into "best buy" range!

• A 2,430 sq ft home on over an acre at the bottom of a cul-de-sac sold for only $612,000. The home built in 2000 needed some cosmetic renovation for most current tastes, but has amazing views.
• An REO (foreclosure) of 2,281 sq ft on almost 3 acres is under contract, asking price $691,200.
• A 2,484 sq ft home on 1.69 acres is the newest to find a buyer. This is the home that started the price war by taking the first move under $800,000. It is now at $649,000...and we are waiting to see the final sales price.

Despite the price war at the upscale Maliu Ridge subdivision near Hawi in North Kohala, the home that is showing under contract today is the first to sell since January!

It will be interesting to see what the final sold price is on this 2,430 sq ft home with big ocean views and all furniture included; list price is $699,000 but it was in competition with a nearby home of similar square footage and ocean views priced at $649,000:

Both of these homes are on a little over an acre. For someone wanting a 2,000+ sq ft home near Hawi on 3 acres with paddocks for horses (or a pet goat or sheep?), the REO (foreclosure) is still on the market at a reduced price of $691,200.

This Maliu Ridge home is one of only five residential properties with offers on them in the Hawi, area, two of which are foreclosures and one of which is a short sale.

Although the inventory of homes for sale has tightened in Kailua Kona, Waikoloa Village and the Kohala Coast resorts, it is still a buyer's market for real estate in Hawi, North Kohala!

A hui hou

Beth

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.

Maliu Ridge, Hawi, luxury foreclosure has this incredible view and horse-ready pasture (MLS 243003)

In 2008, well past what most observers feel was the peak of the Hawaii (Big Island) real estate market, a lovely ocean view home at Maliu Ridge, the upscale subdivision above Hawi in North Kohala, sold for $1,275,000 setting a new record. My jaw dropped when this property hit the MLS a few days ago. I'm not sure whether I was more surprised at the $798,600 price or the fact that it had been foreclosed!

I hurried over and verified the property, unlike most foreclosures, is still in pristine condition. It is a perfect layout for someone who wants a right-sized home for retirement as the main house is only around 2,000 sq ft, and the 3 bedrooms and guest house are well separated to provide privacy for visiting family and friends...or for use as offices for the not-quite-retired.

Most Maliu Ridge lots are only a little over an acre, but the parcels on Kamalei, the last cul-de-sac, are larger. This home is on 3 acres and is already fenced for horses. Super as a horse property, because you can actually ride the quiet backroads right down to the town of Hawi if you want! (I've kept horses on a vacant lot across the street for the past three years, as a matter of fact.)

There are other homes for sale in Maliu Ridge and nearby Hawi neighborhoods at a lower price, but none with this combination of quality, lot size and view. Value? A year ago there was a closing of a nearby home together with the adjacent lot, a residence of 2882 sq ft, 2 bedrooms on a total of 3 acres for $1,200,000. Under $800,000 for the recently foreclosed property looks like a "best buy" to me!

A hui hou,

Beth