Average sales prices for Waikoloa homes are heading much higher this year as the number of homes for sale continues to decline. At this point in the year, the entry level pricing for homes has now moved from the $200,000’s into the $300,000’s and higher end homes priced in the $500,000’s and $600,000’s are starting to sell.
Looking back at 2012, it’s now easy to see that the first portion of the year had a slight rise in sales prices after starting at an average sales price between $250,000 and $300,000. Last year ended with a rise in prices that ended up in the high $300,000’s. So far in 2013, overall prices have continued to rise and in May hit over $450,000 as an average sales price for Waikoloa homes.
Here is a look at a graph with the average sales prices for Waikoloa homes in 2012 and 2013 year to date.
For the next few months, the average sales prices may drop back a bit into the $300,000’s as the few remaining distressed properties priced in the $200,000’s move out of escrow as closed sales.
There are currently about 20 homes in escrow with 6 homes priced under $300,000. Most of these homes are either short sales or bank owned properties that can take several months to close on a sale. When these homes do close, their sales prices tend to be drastically below current market prices for similar homes.
Homes in the $300K’s are Getting Hard to Find
There are only 27 homes listed for sale right now in Waikoloa with nothing listed in the $200’s. Entry level now starts at $335,000 and there are only 5 homes priced under $400,000 available for sale in Waikoloa. Buyers who waited may now be priced out of the market due to higher home prices and rising interest rates.
Short Sales and Bank Owned Foreclosed Homes Are Gone
Waikoloa home sales in the past few years have been heavily influenced by a large percentage of short sales and bank owed homes that were acquired through foreclosure. As noted above, the last of these homes are slowly moving out of escrow into the sold column – and new distressed homes are not coming onto the market.
At this time, there is only one home listed for sale that is a short sale. My experience with short sales shows that pricing for short sales in the past year has increased from below market value to now most often pricing very close to market value. With prices rising so rapidly in Waikoloa, it is quite possible that a home that would have been sold as a short sale last year can now be sold as a “regular” sale.
I’ll be back next month to take another look at the year so far when the 2nd quarter sales are finalized.
I love the Big Island!