Did Today’s Kuki’o Auction Show the Luxury Market Outlook Improving?
Based on this morning’s Concierge Auctions activity at Kuki’o, on the Big Island’s Kohala Coast, the answer just might be yes.
Auctioneer at Kukio
The setting – a gorgeous, luxury custom home in the most prestigious community on the Big Island of Hawaii – Kuki’o. The auction – absolute. Sitting at a table of phones with me were three other distinguished Big Island Brokers also representing their clients – by phone. (Someone remarked that we looked like we were playing poker.) Two other agents in attendance – and at least three registered bidders in person. A beautiful spread of pupus and of course champagne – for after the bidding! I wanted to check in with Foursquare but restrained myself. Just one photo with the iphone.
Opening the bid at $1M… it quickly climbed to… well, that’s the thing, can’t say until the property is recorded at the end of this month. What I can say is that the bidding was energetic and there seemed to be quite an interest in purchasing this home – more than I expected, which is also my experience of the price. Perhaps we’ve seen the bottom of the luxury real estate market. Seems to me the “deals” are becoming fewer and far between.
Adam
September 7, 2010
Wasn’t there supposed to be a Hualalai home along with this auction? I’m not as upbeat as you… last time I was at Hualalai the Alan Wong grill had shut down and services were much weaker than my wife and I remembered (we’ve been going yearly since 2000).
Adam
September 7, 2010
Wasn’t there supposed to be a Hualalai home along with this auction? I’m not as upbeat as you… last time I was at Hualalai the Alan Wong grill had shut down and services were much weaker than my wife and I remembered (we’ve been going yearly since 2000).
Katie Minkus, R(BIC)
September 7, 2010
Aloha Adam. Yes, in fact there was another house auctioned at Hualalai the same day. I saw the Broker Saturday morning who had the one and only buyer at the Hualalai auction, he said it was a trip to be the only paddle in the room! His buyer’s final price was sufficiently low that he’s not sure it will be accepted by the bank in the end… we’ll see.
When were you last on island? Admittedly, the Big Island has gone through a really really rough patch economically speaking these past two years but I see signs of improvement everywhere. I live in Puako and right now there are three huge building projects going on – that’s three times as many as there were two years ago! 🙂 We’re seeing a lot of buyers in the $1-3M range who are looking for “bargains” and in my opinion, most of those are long gone. There are still some nice properties to purchase in the $1-3M range, of course, it’s just that they are not the screaming deal of the century that the bargain hunters want to purchase. Paul Brewbaker, in fact, said last week he doesn’t think Hawaii is going to see the “double dip” that is predicted for the rest of the mainland… again, we’ll see!
Thanks for your comment! Next time you’re visiting, take a drive north and check out the Mauna Kea hotel – you might appreciate the strong customer service and wonderful food at the “Grand Dame of the Kohala Coast!” warm aloha, Katie
Katie Minkus, R(BIC)
September 7, 2010
Aloha Adam. Yes, in fact there was another house auctioned at Hualalai the same day. I saw the Broker Saturday morning who had the one and only buyer at the Hualalai auction, he said it was a trip to be the only paddle in the room! His buyer’s final price was sufficiently low that he’s not sure it will be accepted by the bank in the end… we’ll see.
When were you last on island? Admittedly, the Big Island has gone through a really really rough patch economically speaking these past two years but I see signs of improvement everywhere. I live in Puako and right now there are three huge building projects going on – that’s three times as many as there were two years ago! 🙂 We’re seeing a lot of buyers in the $1-3M range who are looking for “bargains” and in my opinion, most of those are long gone. There are still some nice properties to purchase in the $1-3M range, of course, it’s just that they are not the screaming deal of the century that the bargain hunters want to purchase. Paul Brewbaker, in fact, said last week he doesn’t think Hawaii is going to see the “double dip” that is predicted for the rest of the mainland… again, we’ll see!
Thanks for your comment! Next time you’re visiting, take a drive north and check out the Mauna Kea hotel – you might appreciate the strong customer service and wonderful food at the “Grand Dame of the Kohala Coast!” warm aloha, Katie
Adam
September 7, 2010
Thanks for the info Katie. We were there in March. One paddle in the room! that sounds like a disaster, no? How would you like to be one of the other owners with a unit for sale? (more and more of which are going around Hualalai Realty and listing on MLS…). We will definitely check out your Mauna Kea Hotel next- please don’t get me wrong, we love Hawaii- but we also love the rally in affordability! Best, Adam.
Adam
September 7, 2010
Thanks for the info Katie. We were there in March. One paddle in the room! that sounds like a disaster, no? How would you like to be one of the other owners with a unit for sale? (more and more of which are going around Hualalai Realty and listing on MLS…). We will definitely check out your Mauna Kea Hotel next- please don’t get me wrong, we love Hawaii- but we also love the rally in affordability! Best, Adam.
Katie Minkus, R(B), Broker-in-Charge Big Island Sales
September 7, 2010
Aloha Adam – it’s encouraging for me to hear that more and more owners in Hualalai are getting smart about needing the exposure that an outside Broker can bring them to sell their property, then just auto-listing with Hualalai Realty. Of course, Hualalai Realty does now post their listings on the MLS, but a company like Hawaii Life can offer a seller SO MUCH MORE exposure any other Big Island brokerage… these are smart people, they will figure it out sooner or later! 😉
I completely agree that the rally in affordability is a welcome relief and long overdue for Hawaii – it was insane there for a couple of years. Buying and selling property in Hawaii is such an emotionally-charged experience in general, that it’s nice for me as a practitioner to have the luxury of time with buyers and sellers to make sure I’m giving them my best advice and they are making their best choice, rather then being driven by fears and a rapidly-moving market (in either direction).
Mauna Kea is a great hotel – there are some properties that far surpass Hualalai and Kukio, but it’s a completely different “feeling.” My clients who prefer Mauna Kea over Hualalai/Kukio are the ones who want to go to a resort where “no one knows them.” It’s not a see-and-be-seen scene. Different strokes for different folks! Give me a shout when you’re coming to town next – if you’re into wine, we can go tasting at the Mauna Kea’s Manta Restaurant! Warm aloha, Katie
Katie Minkus, R(B), Broker-in-Charge Big Island Sales
September 7, 2010
Aloha Adam – it’s encouraging for me to hear that more and more owners in Hualalai are getting smart about needing the exposure that an outside Broker can bring them to sell their property, then just auto-listing with Hualalai Realty. Of course, Hualalai Realty does now post their listings on the MLS, but a company like Hawaii Life can offer a seller SO MUCH MORE exposure any other Big Island brokerage… these are smart people, they will figure it out sooner or later! 😉
I completely agree that the rally in affordability is a welcome relief and long overdue for Hawaii – it was insane there for a couple of years. Buying and selling property in Hawaii is such an emotionally-charged experience in general, that it’s nice for me as a practitioner to have the luxury of time with buyers and sellers to make sure I’m giving them my best advice and they are making their best choice, rather then being driven by fears and a rapidly-moving market (in either direction).
Mauna Kea is a great hotel – there are some properties that far surpass Hualalai and Kukio, but it’s a completely different “feeling.” My clients who prefer Mauna Kea over Hualalai/Kukio are the ones who want to go to a resort where “no one knows them.” It’s not a see-and-be-seen scene. Different strokes for different folks! Give me a shout when you’re coming to town next – if you’re into wine, we can go tasting at the Mauna Kea’s Manta Restaurant! Warm aloha, Katie
Kohala Coast Real Estate – “Gold Coast” Sees Seller Financing « Hawaii Real Estate Market
September 11, 2010
[…] Not ready to jump in, for fear the downward price trend is going to continue forever? Perhaps it’s time to reconsider—we’re already seeing signs up and down the coast indicating that for some neighborhoods, the bottom is long gone. […]
Kohala Coast Real Estate – “Gold Coast” Sees Seller Financing « Hawaii Real Estate Market
September 11, 2010
[…] Not ready to jump in, for fear the downward price trend is going to continue forever? Perhaps it’s time to reconsider—we’re already seeing signs up and down the coast indicating that for some neighborhoods, the bottom is long gone. […]
Living the Hawaii Surfer’s Life at a Puako Beach Home « Hawaii Real Estate Market
January 16, 2011
[…] even tow-in off the point. And then, of course there’s Pine Trees, located close to Kona and Kukio, and Hualalai resorts. I’d love to tell you what makes living here so fantastic. There is nothing […]
Living the Hawaii Surfer’s Life at a Puako Beach Home « Hawaii Real Estate Market
January 16, 2011
[…] even tow-in off the point. And then, of course there’s Pine Trees, located close to Kona and Kukio, and Hualalai resorts. I’d love to tell you what makes living here so fantastic. There is nothing […]
Katie Minkus, R(BIC)
January 18, 2011
An update on this sale. The property did finally sell and close for $4,950,000. That does show a slight uptick in price/value for Kukio. All the investors on the phone were out of the bidding around $2M and two buyers bid it up to this final price. Just goes to show that auctions don’t necessarily sell at rock bottom prices and can work to a seller’s advantage in this market.
Katie Minkus, R(BIC)
January 18, 2011
An update on this sale. The property did finally sell and close for $4,950,000. That does show a slight uptick in price/value for Kukio. All the investors on the phone were out of the bidding around $2M and two buyers bid it up to this final price. Just goes to show that auctions don’t necessarily sell at rock bottom prices and can work to a seller’s advantage in this market.
Luxury Kohala Coast Properties To Be Auctioned in March « Hawaii Real Estate Market
February 23, 2011
[…] Auctions is the firm that has done such a great job conducting live auctions at Kukio and Hualalai. (Remember the sale of Cher’s home?) Within 24 hours, I’ve had three […]
Luxury Kohala Coast Properties To Be Auctioned in March « Hawaii Real Estate Market
February 23, 2011
[…] Auctions is the firm that has done such a great job conducting live auctions at Kukio and Hualalai. (Remember the sale of Cher’s home?) Within 24 hours, I’ve had three […]