As recently as 3 months ago, bargain seekers had only to scan Princeville condo listings to find a great deal.
One of the few Princeville condo deals on the market today, a Puamana REO (MLS# 234354)
Some listing prices there, impacted early in the game by short sales and REO’s, had fallen to less than 50% of their sales prices at the height of the market. Some excellent deals were had by savvy Buyers.
So where are the deals now? Good question—I had the opportunity to show Princeville condos yesterday and could only find two listings that fit my description of a “deal”.
Two possible explanations:
- The most motivated Sellers have now sold, leaving the market to find a new equilibrium.
- A number of those excellent deals are still in escrow (or tied-up in short sale limbo).
Only time will tell. Myself, I’m leaning towards the second eventuality. And if this is the case, the condos in escrow should begin closing in the coming month or two, which means appraised values may start to dip significantly, and hopefully we will be in for another round of deals
Now about those deals that I DID find…
Deal 1
One is a 2 bedroom Puamana REO listing (MLS# 234354) right on the golf course, listed for $300K. I’m pretty sure it’s the lowest priced golf course condo by a mile.
Mauna Kea Balinese dream
Deal 2
The other is Anthea Adair’s Mauna Kea listing, (MLS # 234415) – incredibly upgraded for $395K. Don’t miss out on that one.
For questions about these or any other Princeville condos, contact me.
Erik Hinshaw R(S)
June 2, 2010
Same thing is happening here in Kona Sagar. As many of the deals are gone buyers are starting to offer more than the most recent sales. This is causing trouble at appraisal time. What you end up with is condos priced too high to get loans and no inventory of condos priced at appraisal value so effectively no inventory. Interesting times.
Erik Hinshaw R(S)
June 2, 2010
Same thing is happening here in Kona Sagar. As many of the deals are gone buyers are starting to offer more than the most recent sales. This is causing trouble at appraisal time. What you end up with is condos priced too high to get loans and no inventory of condos priced at appraisal value so effectively no inventory. Interesting times.
Sagar
June 2, 2010
That is interesting, Erik. How do you see that resolving?
Another interesting thing happening here is that the 2010 County assessed values are just now making their way onto the MLS public record section. A lot of savvy Buyers (and agents) use those values as a guideline to judge how well (or not) a property is priced. Obviously, the 2010 values are quite a bit lower than 2009’s. Buyers used to figuring proper pricing as a percentage of assessed value will now be too low, unless their realtors set them straight.
Sagar
June 2, 2010
That is interesting, Erik. How do you see that resolving?
Another interesting thing happening here is that the 2010 County assessed values are just now making their way onto the MLS public record section. A lot of savvy Buyers (and agents) use those values as a guideline to judge how well (or not) a property is priced. Obviously, the 2010 values are quite a bit lower than 2009’s. Buyers used to figuring proper pricing as a percentage of assessed value will now be too low, unless their realtors set them straight.
Ron Margolis
June 11, 2010
There are still plenty of condos in foreclosure and many AOAOs who have already foreclosed on the defaulting owners, and are renting the condos to recoup some of the delinquent maintenance fees. This will yield more distressed inventory down the road. What you guys are saying is true though. It’s all supply and demand and if a buyer wants to purchase in a specific condo complex the supply and demand will effect the flexibility of the pricing.
One other thing to note is that while prices are quite low, our maintenance fees are still extremely high and like in the Mauna Kea above which is a superb deal, the owner still has to fork out a grand a month between HOA fees and insurance. That’s a lot!!!
Ron Margolis
June 11, 2010
There are still plenty of condos in foreclosure and many AOAOs who have already foreclosed on the defaulting owners, and are renting the condos to recoup some of the delinquent maintenance fees. This will yield more distressed inventory down the road. What you guys are saying is true though. It’s all supply and demand and if a buyer wants to purchase in a specific condo complex the supply and demand will effect the flexibility of the pricing.
One other thing to note is that while prices are quite low, our maintenance fees are still extremely high and like in the Mauna Kea above which is a superb deal, the owner still has to fork out a grand a month between HOA fees and insurance. That’s a lot!!!