Today I had the supreme pleasure of showing property in Puako Beach, on the Big Island’s Kohala Coast. A pair of Hawaii Life clients own a mauka-side (toward the mountain) property and are considering “trading up” to a makai (toward the ocean) property.
MLS# 226889, asking $3,950,000.
So we went to see #106, an older, two-story beachfront home that can function as a 3-unit rental.The beach in front of this house is wide and large, with easy water access- perfect for snorkeling, diving, canoeing, SUP (Stand Up Paddling)… and with today’s swell, certainly boogie-boarding and surfing too.
As it happens, the year-end results for Puako Beach sales in 2009, show that things in the neighborhood are looking somewhat positive! Six properties sold – 4 mauka and 2 makai, as opposed to 2008’s two properties sold – 1 mauka, 1 makai. (And because I know you want to know, in 2007, 8 properties sold – 2 mauka and 6 makai.)
It appears possible we’ve hit the “bottom” of pricing in Puako, at least on the mauka side of the street. The lowest-priced mauka sale since #35 sold in April, 2003 for $499k* – lot #27 went for $500k in May, and comparable sold property prices indicate an increase in value since then. This is good news for the “desirability” of Puako in general.
As for the makai side of the street, two sales hardly indicate a trend, compounded by the fact that they were entirely different sorts of properties. #56, a 972 sqft, 3/2 traditional puako beach cottage was sold by Pattie Freeman of Hawaii Vacation Rentals, for $2,650,000 in May. The second sale was a pair of lots – #18 & #20 – which sold for $6.5M in August. The architecturally significant luxury home on lot 20 has a lap pool and gym, while lot #18, next door, was designed to operate as the “yard” for #20. Stunning design and two lots worth of ocean frontage, brilliant.
MLS#218052, asking $2,500,000
Currently on the market for $2.5M is a 751sqft, 1/1 traditional beach cottage which has been making me wonder if we’ve yet seen the “bottom” of pricing on the makai side of the street? On the other hand, oceanfront choices are few and far between in Puako, with only two other homes on the market today. In fact, I have three clients who want to buy on the makai side of Puako right now, but nothing available suits their needs. It’s an interesting position to be in during a widely-perceived “buyer’s market.”
While attending a makai neighbor’s holiday party last weekend (the house was gorgeous) it seemed despite the amazing house and host and hostess, all anyone could talk about were stories of Puako… who knows who from when and which house and remember when and general gratitude and appreciation for our being there that evening and for every moment we spend in Puako. Who could blame us? Puako is special. While standing on the lanai of #206 today, the tenants who so kindly allowed us to see the property despite their occupancy (mahalo nui loa, Harry and Lisa!), mentioned they had seen tons of whales today, and then, naturally, we saw one too… :)
To see all the properties currently on the market in Puako Beach, please see the gallery I’ve created: www.puakoproperties.com. Or email me katie@hawaiilife.com and I’ll send you a brochure.
*In the interest of full disclosure, I am the owner of #35 Puako.
The next wave is the resetting of the Pay Option ARM loans that largely were originated between 2004 and 2007 and were for a 5-year term. The chart to the right shows the dollar volume of the loans that are set to reset in the coming years. Compared to the Subprime meltdown (the first wave of the set), these Option ARM and Alt-A loans that are scheduled to reset through 2011 are occurring in a real estate market that has already been subjected to declining values. A large number of these mortgages are expected to default, thus adding to the growing number of foreclosures and REO inventory.
