A Bay Sunset (June 2013)
We’ve been working with a number of clients who have been watching the market on the Big Island for a while. Through various discussions and market analyses, they are all either actively looking for the right property or have offers in play. The main reasons seem to be these:
1. The Big Island. It’s still somewhat undiscovered compared to the other Hawaiian Islands. With a landmass the size of the state of Connecticut, the population here is about 180,000 compared to 3.5 million in Conn.
2. The Weather. Almost all of these clients have traveled extensively, but keep coming back here. The Big Island may just have the best weather anywhere.
3. The Market. By now it is clear that the severe downturn in this market has hit bottom and has turned the corner. Prices are still low compared to the height of the market, but are definitely rising. There doesn’t seem to be much point in waiting any longer.
4. The Inventory. It continues to shrink, and despite what some people say about a “different market this time,” supply and demand is universal. The lack of inventory will continue to generate quick sales, multiple offers, and higher prices. It’s inevitable. By our last count, there were only 22 condos for sale in the Waikoloa Beach Resort (outside of the Kolea subdivision, which has 16 listings all its own). This is an incredibly small number.
5. Interest Rates. The very mention by the Fed that they might back off quantitative easing in 2014 caused interest rates to rise dramatically. Rates are still historically low, but it seems clear that at some point the Fed will have to back off and let rates find their level, which will undoubtedly be higher. Locking in a low rate now would be a smart move.
Ready to Buy a Piece of Paradise?
If you’ve been eying the Big Island for a second home or to relocate, perhaps these points will be food for thought. We are always happy to discuss the market here and help discover the best deals available. Contact us with any questions.