Is Madame Pele Affecting Home Sales? Round Up for 2014

**Figures are from 2nd qtr 2104, none available for 4th qtr 2013. Figures in table compiled by Denise Nakanishi using data from title company statistics

The Answer is No…

Those of us nervous about the effect of Madame Pele’s visit on the East Hawaii real estate market will find many of these statistics interesting. Most areas, as well as the island, remained very stable. The number of residential and vacant land sales island-wide decreased ever so slightly.

Condominium sales actually soared. Sales prices for residential properties increased about 7% (Hilo 7%, Puna 8%), while vacant land prices slid a bit (3.8%). One very positive change can be noted and that is in the median price of a Hawaiian Paradise Park (HPP) under contract home.

And Yes…

Ainaloa and Nanawale are likely suffering from the “Pele” effect. Inventory is up and the under contract price has declined. As Pele’s fingers continue to spread over much of lower Puna, so goes market activity. Sales numbers and sales prices in Leilani seem to be on the decline. There were half the number of sales this past quarter as during the final quarter of 2013. In fact, the last Leilani closing occurred on Oct 30, 2013.

And Maybe…

There were 69 sales in Lower Puna during 2013 and 72 during 2014. But with only 5 properties under contract, sales appear to be stalling. Not surprisingly, Volcano corridor sales are doing well. Sales in Pacific Paradise Gardens, the Royal Hawaiian Estates area, as well as Volcano Golf Course seem to have picked up. I suspect areas such as Hawaiian Acres, Fern Acres, and Fern Forest are active as well.

What’s Happening in Your Neighborhood?

As always, if you want to know what’s going on in your neighborhood (even if you are just a little nosey) sign up for a personalized market snapshot. Don’t do computer? No problem. Just give us a call. Team Nakanishi is always here to help.