Did Today’s Kuki’o Auction Show the Luxury Market Outlook Improving?

Adam

September 7, 2010

Wasn’t there supposed to be a Hualalai home along with this auction? I’m not as upbeat as you… last time I was at Hualalai the Alan Wong grill had shut down and services were much weaker than my wife and I remembered (we’ve been going yearly since 2000).

Katie Minkus, R(BIC)

September 7, 2010

Aloha Adam. Yes, in fact there was another house auctioned at Hualalai the same day. I saw the Broker Saturday morning who had the one and only buyer at the Hualalai auction, he said it was a trip to be the only paddle in the room! His buyer’s final price was sufficiently low that he’s not sure it will be accepted by the bank in the end… we’ll see.

When were you last on island? Admittedly, the Big Island has gone through a really really rough patch economically speaking these past two years but I see signs of improvement everywhere. I live in Puako and right now there are three huge building projects going on – that’s three times as many as there were two years ago! 🙂 We’re seeing a lot of buyers in the $1-3M range who are looking for “bargains” and in my opinion, most of those are long gone. There are still some nice properties to purchase in the $1-3M range, of course, it’s just that they are not the screaming deal of the century that the bargain hunters want to purchase. Paul Brewbaker, in fact, said last week he doesn’t think Hawaii is going to see the “double dip” that is predicted for the rest of the mainland… again, we’ll see!

Thanks for your comment! Next time you’re visiting, take a drive north and check out the Mauna Kea hotel – you might appreciate the strong customer service and wonderful food at the “Grand Dame of the Kohala Coast!” warm aloha, Katie

Adam

September 7, 2010

Thanks for the info Katie. We were there in March. One paddle in the room! that sounds like a disaster, no? How would you like to be one of the other owners with a unit for sale? (more and more of which are going around Hualalai Realty and listing on MLS…). We will definitely check out your Mauna Kea Hotel next- please don’t get me wrong, we love Hawaii- but we also love the rally in affordability! Best, Adam.

Katie Minkus, R(B), Broker-in-Charge Big Island Sales

September 7, 2010

Aloha Adam – it’s encouraging for me to hear that more and more owners in Hualalai are getting smart about needing the exposure that an outside Broker can bring them to sell their property, then just auto-listing with Hualalai Realty. Of course, Hualalai Realty does now post their listings on the MLS, but a company like Hawaii Life can offer a seller SO MUCH MORE exposure any other Big Island brokerage… these are smart people, they will figure it out sooner or later! 😉

I completely agree that the rally in affordability is a welcome relief and long overdue for Hawaii – it was insane there for a couple of years. Buying and selling property in Hawaii is such an emotionally-charged experience in general, that it’s nice for me as a practitioner to have the luxury of time with buyers and sellers to make sure I’m giving them my best advice and they are making their best choice, rather then being driven by fears and a rapidly-moving market (in either direction).

Mauna Kea is a great hotel – there are some properties that far surpass Hualalai and Kukio, but it’s a completely different “feeling.” My clients who prefer Mauna Kea over Hualalai/Kukio are the ones who want to go to a resort where “no one knows them.” It’s not a see-and-be-seen scene. Different strokes for different folks! Give me a shout when you’re coming to town next – if you’re into wine, we can go tasting at the Mauna Kea’s Manta Restaurant! Warm aloha, Katie

Katie Minkus, R(BIC)

January 18, 2011

An update on this sale. The property did finally sell and close for $4,950,000. That does show a slight uptick in price/value for Kukio. All the investors on the phone were out of the bidding around $2M and two buyers bid it up to this final price. Just goes to show that auctions don’t necessarily sell at rock bottom prices and can work to a seller’s advantage in this market.