At first look, 2009 condo sales look similar to 2008 sales as both years posted 18 sales for existing condos. But, a closer look at the numbers shows some very shocking news.
The most amazing sales news for Waikoloa condo sales is…the complete lack of sales! From 11/18/2008 to 3/27/2009 there was not one single condo sale in Waikoloa Village, a town known as one of the Big Island’s biggest condo towns. At this time the economy was tanking, real estate prices were falling and no one knew when the the recovery was going to happen.Â And so, no one was buying condos. This time of year, in years past, had been one of the peaks of the buying seasons centered around the winter tourist season.
When 2009 sales did start up, it was a different condo sales market from 2008.Â Â Â Sale prices took a large drop downward.Â Â Elima Lani, one of the two entry level complexes, saw its prices drop from theÂ $200,000’s into the $100,000’s.Â Â For 2008, the average condo sales price in Waikoloa Village was $268,317 but for 2009 it dropped to $210,933,Â a drop of about 21%. Elima Lani was by far the most active complex with 6 of the 18 sales,Â followed by the other entry level complex, Fairway Terrace, with 3 sales.
One other very interesting tidbit I saw in the sales figures was the type of financing used in these sales.Â In both 2008 and 2009 there were about 8 cash sales in the condo market.Â But, the stat that I think needs following, Â is thatÂ from the last nine sales in 2009, Â 6 were cash sales. The days of fast and Â easy money for buying a condo are gone.Â Â Â In today’s market it takes a substantial down, a good borrower….AND a complex the lender is willing to lend in.Â Â Currently, there are some condo complexes that lenders prefer to not lend in at all and some they will but at a higher interest rate.Â All in all,Â it pays to do your homework with your agent and your lender before you start looking in today’s condo market.