Market News
Buyers, if you were considering the purchase of a second home or investment property here on the Big Island, but were put off by the high prices of 2005 and 2006, it may be time to take another look. Prices on both homes and condos are down considerably over the last year and inventory is high. With the present mortgage situation it has become increasingly important for sellers to consider all offers and be willing to negotiate on price and terms. Some sellers are now willing to carry a portion of the debt to assist buyers in their purchase. Buyers with good credit and cash for down payments are being courted by lenders and may be in a better position to borrow than they were just a few weeks ago.
Here in the Kona area we are seeing residential home prices starting in the low 400’s, where a year ago they were closer to 500K. New homes in Pualani are coming on the market in the mid to high 400’s for the smaller models. That is great news for local buyers who want to escape a rental. Palisades also has quite a few homes listed in the high 400’s to low 500K range and then on up. Homes in those areas make great long term rentals, but cannot be vacation rented.
If you are interested in a condo, there are some terrific buys in the market. Alii Cove has a large number of newer condos offered for resale in the 400-600 range depending on size and view. That is down 100+K from the levels of early 2006. Those units can be rented for longer term, but not for under 30 days. Hualalai Village, Sea Villas, and Alii Park Place offer similar savings on newer condos.
If you are looking for an interesting investment opportunity, I have a top floor Kona Bali Kai unit that is an oceanfront 2 bedroom, 2 bath unit with a large lanai being offered at 579K. It needs updating, but would then be a wonderful vacation rental or second home and is a great opportunity to own oceanfront property at a reasonable cost. That condo can be seen at: http://www.konadreamhomes.com/vacationrentalsphotoskonabalikai406.html
Up at the Waikoloa Beach Resort, a popular vacation destination, there are a number of Colony Villas and Fairway Villas condos being offered in the low to mid 500’s on up to the 600’s. Less than two years ago they all started in the mid 600’s and went up to over 800K. Those would make terrific vacation rentals! Waikoloa Beach Resort is expanding and will open The Queen’s Shoppes in October, which will feature mid to high end shops and a number of new restaurants. Our own office will be opening a new branch up there as well, and we are very excited about it.
If you’d like more information on any areas around Kona or up the Kohala Coast, please let me know. I’d be happy to address your questions.
Hurricanes and Earthquakes and the Lunar Eclipse
The Big Island has had a number of interesting happenings the last couple of weeks. Hurricane Flossie threatened the island with category 4 winds for a few days in mid August. We all heeded the warnings and made appropriate preparations, but to our delight, the hurricane fizzled out as it passed about 100 miles south of Southpoint. Here in Kona it did not even rain!
Just the day before the hurricane was predicted to hit, a level 5 earthquake struck the southeast side of the island, but it did not cause any measurable damage to property. We did not really even feel it much on the Kona side.
This week brought a spectacular lunar eclipse to Hawaii and the western portion of the US. David and I were able to stay up (surprisingly), and watched it from our driveway. It was a beautiful night and David was able to capture the eclipse on camera showing the various stages. I hope you enjoy the pictures…
8/27/2007 11:05pm HST
Early Eclipse
8/27/2007 11:16pm HST
Stage 2
8/27/2007 11:30pm HST
Stage 3
8/27/2007 11:45pm HST
Stage 4
08/27/2007 11:53pm HST
Stage 5
08/28/2007 12:15am HST This one is a bit blurry as it was taken with a 30 second exposure.
Stage 7
Full Eclipse 30 sec exposure
Life is never dull here on the Big Island and offers many opportunities and special moments! Aloha!
