2011 Waikoloa Village Market Report

Here is the link to the 2011 Waikoloa Village Market Report.  In this post I am addressing the Home segment  but there are links to land and condo sales, feel free to call me about these segments if you are interested.  The links lead you to an interactive report.  Clicking on the icons and underlined numbers connect you to photos, virtual tours and property details.

Homes Report

Land Report

Condo Report

Waikoloa had 90 home sellers who were very happy last year; they sold their homes.  That tells us that we have slightly more than a 6-month supply of homes now that there are only 54 homes for sale in Waikoloa.  Of these, approximately 27% are distressed sellers.  We have 15 homes in escrow waiting to close, 11 of these are “Distressed” properties.

The first half of 2011 saw 41 homes sold for an average price of $320,385.  Of these 41 homes, approximately 63% were sold by distressed sellers.  In the second half we saw a small 2% decrease in average price to $313,412.  This slight decrease is mostly due to the fact that in the first half of 2011 four homes sold over $600,000.  These sales were  begun in the first quarter which typically sees a higher level of activity with the presence of “snowbird” buyers.  In the second half only one home sold over the $600,000 mark, but of the 40 homes sold, only 49% were noted as distressed by our Multiple Listing Service.  This is encouraging because short sales and foreclosures depress the average price.  However, there are many buyers who do not wish to  participate in the prolonged agony of short or foreclosed sales, dealing with lenders as sellers is never easy.

Pacific Business News reported that according to Realty Trac Hawaii foreclosures have decreased 50% in 2011 compared to 2010.  The “Shadow Inventory” of bank held distressed properties is not as threatening to Hawaii as to other areas because of the new State law the forces Banks to work with distressed sellers.  We are seeing more short sales closing as opposed to foreclosures because of this law so there will be less bank held Hawaii “Shadow Inventory” flooding the market as some pundits (or are they politicians with an agenda) predict.   After all, we are the “loveliest islands to grace any ocean”.

We are seeing some new home starts in Waikoloa with a few homes being built at Sunset Ridge and of course, my very excellent brand new homes with ocean views hitting the market at great prices.  Buyers sitting on the fence should move forward this year because we will not be seeing these low prices for that much longer.  We are watching the low priced inventory being swept up into escrow faster this year than last with the current flock of snow birds.  Sellers with equity may find this an opportune time to move up or out to well priced resort or ranch properties.  While we may not be in a fast appreciating “Bubble” market we are heading for stability.  We see appreciation in various neighborhoods in West Hawaii and even a slight increase of vacant land sales.  There is an increase in building permit applications state wide.   Airlift to the islands is at 90% of 2007 levels and hotel occupancy is very decent for the season.  Several large groups are in town or headed in.   All in all, life is good on the Big Island.  Call me if you have any questions.  Hope this new year is Happy, healthy and prosperous for you and yours.  A hui hou.