Concierge Auction’s latest Hualalai Four Seasons resort auction planned for July 1st, has been postponed to August 24, 2010, with a newly-discounted “suggested opening bid” of $4.5M.
Original minimum bid price was $5.9M, now asking $4.5M
What does this say about the state of Hualalai property? There have been 13 sales since January: 3 bare lots, 6 condos and 4 homes. The homes conveyed from $8.72M in February to $14.5M in Aprilâ€”the last sale being a gorgeous oceanfront estate with both parties represented by outside Brokers. (Congratulations to Nicole Vincent and Ed Rapoza of Island Land Company and Brandon Wood of Pacific Resort Realty). And of course, Cher’s house which sold at auction in January.
There are currently 15 luxury estate homes in Hualalai Resort on the market for sale, ranging in price from $5.695M to $13.2M, and one in escrow listed at $8.195M. Simple math tells us that at this rateâ€”if no other homes come on the marketâ€”it will take roughly 1.5 – 2 years to sell these 15 units. Not to mention the 30 active condo listings ranging in price from $1.295M to $6.595M. Six condos have sold so far this year, and with one in escrow, that gives us about 4 years to sell through the Hualalai condo inventory.
In comparison, 2009 saw 11 Hualalai estate homes convey – from $4.75M to $26.25Mâ€”all but one of those was in the second half of the year, and it’s widely accepted that the first Hualalai Auction sparked a buying spree, as evidenced by 10 homes selling in the following six months.
My guess? The Hualalai estate home being auctioned needs to sell now, there is simply too much other competitive inventory available to wait any longer. By lowering the suggested minimum bid to $4.5M, the price should be significantly low enough to garner attention over the other available listings. Postponing the auction until August gives some time to foster anticipation at this new price point, and if it worked to set off a buying fire of Hualalai real estate last year, maybe it will work again this year… Certainly this could be the buy of the year at Hualalai Resort for one very lucky auction winner!