Waiki'i Ranch Has 5 Year Supply of Lots For Sale at Present Sales Rate
Waiki’i Ranch, having a fairly small inventory of homes and lots for sale, usually shows slower sales activity than the rest of the Big Island. I like to report on sales at Waiki’i Ranch, but so far, 2011 is proving to be a very difficult market for sellers at Waiki’i Ranch.
There has only been one sale in the entire ranch for a lot and no home sales. There is a second lot sale that is pending and no home sales pending at this time. In the past year, there have only been two lot sales, and with 10 lots now on the market, this gives Waiki’i Ranch a 5 year supply of lots for sale.
This is the view from the 10 acre lot (MLS# 222189) that is in escrow at this time, listed at $195,000
Taking a look at the lot that did close, shows that it took a huge price drop to move this lot. Lot # 7, a 10 acre lot, sold for the incredibly low price of $150,000 cash on March 3rd. This lot had been on the market last year, listed at $250,000 with no takers, and then was off the market. Brought back this year at this “how low does it have to go to move it” price, it was gone in just 3 days. For the record, this was not the lowest sale for a 10 acreâ€”there was a lot sold at $140,000 in 2002.
What will it take to get sales moving at Waiki’i Ranch for lots? Buyers will have to realize that $150,000 was the deal of the decade and not expect all lots to be dropped to this price range. On the other hand, sellers will have to move closer in price to where recent sales have been.
Here is the major reason why lot sales are slow in Waiki’i Ranch. While there may be an occasional lot listed for sale at Waikii Ranch that was bought at a low price, many of the lots listed for sale in the ranch were bought in the $300,000s. Most sellers either won’t, or can’t look at selling a lot for half of their purchase price.
With a monthly HOA fee of only $360, many sellers may opt to wait out the market in the hopes of prices getting back up into the $300,000s before selling. The lot that did sell at $150,000 was not a prime lot, being in a row of lots close to the clubhouse, and lacking the privacy and views of other lot locations.
I’m not sure there are many buyers willing, at this time, to pay double the price for a “superior” lot location. So, it is very possible that it will take several sales over an extended time to slowly bring buyers and sellers closer together in price at Waiki’i Ranch. Until that happens, lot sales will probably remain slow.
I love the Big Island! Aloha!