Recently, I spoke with an appraiser who called to verify information on a home I sold in Waikoloa Village. We engaged in the usual talk story about the real estate market home values. When I asked if she saw any markets starting to change, I received an interesting response. The answer was an amazing, YES! The appraiser went on to say that right now homes under $400,000 in Waikoloa Village are “Stable.”
An appraiser has 3 choices on their form regarding market condition: increasing, stable, or declining. The roaring 2000’s were of course, an increasing market. And, we’ve been in a “declining” market for some time now. So, to hear a “stable market” is big news. This appraiser did go on to qualify this by saying, “it is just one price range, in one market and it may just be a short term result of the stimulus money…”
So, what are the numbers behind this story? In the last six months Waikoloa Village had a total of 37 sales for homes priced under $400,000. Currently, there are only 30 homes listed for sale in this price range. There is now slightly less than a six month inventory of homes in Waikoloa Village in the sub $400,000 market, the absorption rate is indeed, steady.
This market segment was created last year as home prices dropped from 2008 values – in the last 6 months of 2008 there were only 22 sales in Waikoloa Village and only 6 sales were in the under $400,000 range as most home prices were still above $400,000.
What does all of this mean to a potential buyer looking for a home in Waikoloa Village? Buyers need to know they potentially have competition and may want to write an offer fast and close to asking price if they want to secure a particular property.
One word of caution – many of the homes listed for sale in Waikoloa Village in this price range are short sales, specifically listed at low prices to encourage multiple offers because they can be difficult to close. If you’re not familiar with the short sale process, read through our blog as many Hawaii Life agents have shown success with these types of transactions.
Examining the next price range in Waikoloa Village real estate, $400,000 to $500,000, the picture completely changes. There have only been 10 sales in the past 6 months and currently there are 20 active listings. This produces an absorption rate of about one year, indicating a very strong buyers market in this price range. This just shows how very localized real estate can be!