Steven M. Starnes

Market update for Hawaiian Paradise Park subdivision in Keaau, Hawaii. Data from Hawaii Information Service on 7/21/2009.

Located near Hilo this 8800 lot subdivision is mostly 1 acre lots with a few 1/2 acre lots it is about 40% built out.

Land: Number of Active Listings: 159 Lowest List Price: $29,000 Median List Price: $54,000 Average List Price: $70,946

Land: Number of Pending Sales (ie. in Escrow): 22 Lowest List Price: $26,900 Median List Price: $48,250 Average List Price: $46,300

(With Pending Sales,we won't know the sale price in the contract until the transaction closes)

Land: Number Sold (1/1/2009 to 7/21/2009): 59 Lowest Sale Price: $21,000 Highest Sale Price: $107,000 Median Sale Price: $35,000

Average Sale Price/List Price= 86.9%

Homes: Number of Active Listings: 136 Lowest List Price: $103,000 Highest List Price:$1,980,000 Median List Price: $279,000 Average List Price: $321,840

(I removed 3 obviously unpermitted structures from the active listings)

Homes: Number of Pending Sales: 52 Lowest List Price: $109,900 Highest List Price: $395,000 Median List Price: $199,000 Average List Price: $206,060

Homes: Number Sold (1/1/2009 to 7/21/2009): 80 Lowest Sale Price: $95,000 Highest Sale Price: $510,000 Median Sale Price: $215,000 Average Sale Price: $217,455

2 un-permitted structures were removed from the low end.

In this subdivision, the market is being driven by short sales and foreclosures. It appears that we are hitting a bottom in the market for this subdivision. There are relatively new (less than 5 years old) 3 bedroom 2 bath homes priced around $200,000 and in good condition. A few are priced below $200,000.

There are some vacant land lots on unpaved roads and mostly off grid that are selling for for below $12,000. In Nanawale Estates (mostly 8,000 sq. ft. lots) the median land price is around $7500 with a few sales in the $2,000 to $5,000 range. Eden Roc Estates is located about 18 miles from Hilo and 1 acre lots are selling between $10,000 and $15,000; many are off grid. Ainaloa Estates which is located about 16 miles from Hilo has 12,000 sq. ft. lots selling from $10,000 to $20,000; electric, phone, DSL and in some areas cable.

Hawiian Paradise Park, one of the largest subdivisions near Hilo, has listings below $30,000 for 1 acre lots. Most of Paradise Park has electric, cable, and DSL. Homes in this subdivision start at around $200,000; there are a few deals priced lower. Keep in mind that this is not ocean front property. But the climate is great and you can grow almost anything here. The ocean front and ocean view lots and homes in this Paradise Park are usually priced much higher.

If you want to move to Hawaii, the areas around Kea'au, Pahoa, Kurtistown, Mountain View and Volcano have the cheapest real estate in Hawaii. You still get what you pay for. If you want ocean views or resort properties, those are still going to be in much higher prices ranges. I'll try to cover some other subdivisions on the east side (windward side) of the Big Island next week.