It’s been just over five months since my last update on the Kolea at Waikoloa Beach Resort real estate market…but in some ways a quiet five months as buyers adjust to the next increment of prices sellers have in mind. The scarcity of listings (only 9 in October) prompted a new wave of sellers to come on market. There are currently 19 active listings; one pending sale; and only two sales in the past six months at beachfront Kolea!
The view from Kolea 7F, asking price $2,400,000 – furnishings technically not included
I’m personally not sure that Kolea 4F or 5F (which needs furnishings) will see someone willing to pay their price this season. That means either Kolea 13C offered for $2,275,000 (MLS# 259011) in my favorite “sleeper” building, or 7F offered for $2,400,000 (MLS# 258583) which is less than the sellers paid, will be the next to sell.
What’s puzzling are listings like Kolea 8D listed at $1,688,000 (MLS# 260437) by owners who paid about that when they bought in 2005. Seems to me if first floor owners, who have a slightly smaller unit and lose their ocean view once the house in front of them is built, are asking over $1.6 million, a second floor at that price makes a whole lot more sense – for now.
In short – with no distress sales on the market in the six-plex Kolea buildings (although we are still waiting for one second floor to finish the foreclosure process), current sellers are looking for another price jump of 30-40%!
Price Expectations Up Sharply for 12-plex (Two-Bedroom) Kolea Condos As Well
The most recent sale of a 2-bedroom Kolea condo barely cracked $500,000; now the least expensive of the 1,270 sq. ft. units is listed at $799,000 with the rest in the $800,000’s. That means we are looking for a cash buyer ready to take the leap…or one with substantial down payment since even in an appreciating market an appraiser is not likely to be able to justify a 50% increase. The last time we saw a sale over $700,000 was in 2010.
One of these Kolea 2 bedroom units showed briefly as being for sale for $400,000 – but it came on market as a short sale with an offer already accepted. And in my opinion, it is unlikely the lender will approve for under $500,000 given the comps.
The outside units in these 12-plex Kolea buildings have a generous 1,554 sq. ft. The ground floor corner is a 3 bed/2 bath and the 2nd and 3rd floors are 2 bed/2 bath condo.
Last year’s non-distress sale of the Kolea 3 bed/2 bath floorplan was $645,000; the only unit currently on the market of this floorplan is listed for $964,000 (MLS# 260212).
The highest price paid in the past two years for a 2nd floor outside unit was $715,000 (and I know it appraised since it was my buyer); now the listings range from $964,000 to $1,125,000. With the same price range asked for 2nd floor and 3rd floor units, we’ll most likely see a 3rd floor next to sell, for a buyer ready to take that leap to near developer sale levels.