Prior to 2021, only one home at Kohala Ranch had ever sold for over $3 million — and that happened in 2005. Last year there were two sales breaking that $3 million barrier, and one of those two just sold again — this time easily passing the $4 million mark! [Congratulations to the listing agent, my Hawaii Life colleague Erika Stuart.]
Letʻs take a quick look at what that sale means for current listings and for the direction of the Kohala Ranch real estate market.
Analysis of Kohala Ranch Home Sales Prices in 2022
In the first four months of 2022 the only limiting factor on the pace of real estate sales at Kohala Ranch has been the lack of homes for sale. Nevertheless, three homes traded, at three different price levels, but all with accepted offer in less than a month:
Why is there a range of prices from $1,750,000 to $4,400,000 translating into a range of $675/sq ft to $1086/sq ft?
- The lowest sales price was a home with the requisite pool and ocean/coastline views, but was built in 1979 and ready for some updates.
- The middle home was asking $2,450,000 and sold for $2,350,000. The home was also geographically “in the middle” — not at the lower Heathers elevation with its climate like the Kohala Coast resort, nor a Summit lot with extra land area. It was a newly constructed home, only 2,254 sq ft but 3 bedrooms. Ocean views but no pool.
- The estate home that sold for $4.4 million included a second lot. Similar lots have recently sold for around $500,000, so adjusting for the extra lot would bring the adjusted price to $3.9 million and the per building sq ft down to $850/sq ft. And in case you were wondering, a dozen vacant lots have already sold this year!
There are three more Kohala Ranch homes in escrow, all of them in the lower Heathers section, including the bank-owned property I recently blogged about as a good buy although in need of repair and renovation.
Three Current Active Listings at Kohala Ranch
There are three active residential listings at Kohala Ranch. Two of them are aspirational in pricing (which does not mean they wonʻt sell for record highs); one of them is fairly priced for todayʻs market and in less than a week already has multiple offers above asking.
Why do I say fairly priced for this market? The home has fabulous views, spacious main suite well separated from the 3 guest bedrooms, koa cabinetry, great outdoor space including a beautiful grilling area on the covered lanai and the infinity edge pool on a lower level for privacy, photovoltaic system for low electric bills. At $850/sq ft that is good value in line with recent sales prices. Anyone want to write a back up offer?
What does this portend for the future? With desirable listings still selling quickly and even attracting multiple offers, supply is still not meeting the pent-up demand. With a predominance of all-cash sales, rising interest rates are unlikely to put any damper on Kohala Ranch homes sales. This pricing is looking like a new normal for Kohala Ranch.