I’ve heard it so many times that I think the media is trying to create a self-fulfilling prophecy. The numbers really don’t support their predictions that the market is shifting. It’s about as accurate as the prediction that interest rates are about to rise. In fact, our East Hawai`i market is still full speed ahead, AND interest rates continue to trend down.
Lelani Estates – Where Are They Now?
The second quarter of 2018 was the quarter I stopped including Leilani Estates in this report. Watch this! During the past quarter, 4 of 18 homes have gone under contract, and 13 homes changed hands in what remains of Leilani Estates. Until this week, insurance choices were limited to HPIA and $350,000. It seems a new insurance company has entered the market so this number will likely inch up along with overall sales in lava zones 1 and 2. But what about owners who are still trying to re-settle from the areas affected by the lava flow?
Growth in Hawaiian Paradise Park
Many are still relocating into (mostly) Hawaiian Paradise Park and Ainaloa. While they are having some effect on supply and demand, there is still much more demand than supply almost across the board (see data column 5). In fact, demand has increased slightly in most areas. Buyers seem to prefer new construction.
Lot prices in HPP are trending higher. This along with the requirement to include solar hot water and more expensive building materials will soon price spec builders out of the starter HPP market.
Sales on the Rise
Nanawale is one area that seems to be a bit schizophrenic. Demand predictions have been slashed to 1/2 the anticipated demand following the first quarter. Nanawale aside, there has been little change almost across the board when comparing 1st qtr to this past quarter. When compared to 2018, sales numbers are up sharply. One other neighborhood showing significant change is Volcano Golf and Country Club. With crystal clear air and little shaking, it’s one of the most beautiful places on the planet, in my opinion.
Don’t see your neighborhood? Remember keeping up with the truth about sales activity is as easy as providing your address/TMK and email address. In the meantime, call if you need personal assistance!