Pricey real estate
selling on Big IsleHigh Kauai prices make buying
hard for locals, agent says
The prices of neighbor island homes continued their climb last month, although the number of sales slowed almost to the level of May 2002.
On the Big Island, the median price for a single-family home reached $245,000 last month, a 40.4 percent increase over the median of $174,500 a year earlier. There were 173 single-family home sales recorded on the Big Island last month, 22 fewer than the previous May.
Median condominium prices on the Big Island did not rise as much. May's median of $175,000 was just ahead of 2002's median of $174,000. There were 62 condominium sales recorded in the month, down from the previous 70 sales recorded a year ago.
But Big Island Realtors note that condominium prices in some areas, such as Kona and Waikoloa, have risen considerably in recent years and are well ahead of overall medians for the island.
"There are a few one-bedrooms along Alii Drive (in Kona) for just under $200,000. They're between 500 and 600 square feet. A two-bedroom at the Alii Lani measuring around 880 square feet would start at around $220,000. Five years ago they were $99,000," said Dave Lucas, broker-in-charge at Century 21 All Islands in Kona.
Likewise potential buyers have to move quickly in Waikoloa, said Gary Davis, broker-in-charge at Clark Realty in Kamuela.
"Every new listing we get down there has more than one offer in three or four days or it's already in escrow," he said. Land prices in the area have also risen considerably in the last year, Davis said.
"Waikoloa lots are selling for upwards of $100,000. One year ago it would have cost $70,000 for a decent lot," he said.
On the Garden Island, fewer choices mean it's becoming harder and harder for local buyers to afford a home at current prices. The median price of a single-family home in May was $412,500, just ahead of May 2002's median of $410,000. There were 41 single-family home sales recorded during the month, about the same as a year earlier. Condominium prices rose to a median of $310,000 last month from $245,000 in May 2002. A total of 57 condominium sales were recorded, up six from a year earlier.
"It's a pretty incredible phenomenon to watch and it's hard for us to accept what $300,000 to $500,000 will buy today," said Lee Morey, broker in charge of Century 21 in Koloa.
Moreover, would-be buyers are becoming more frustrated because it is difficult to find what they want.
"It's bleak for the local buyer," Morey said. "Look at what $412,500 is buying you today vs. a year ago."
For any home below $400,000, the competition is hot, she said. The same if a particular property is perceived as a good value, she said.
"People have made sight-unseen offers contingent on viewing later," Morey said. "It's not good, but it's happening and sometimes that's what you have to do to get a foot in the door."
