When looking at projected demand (column 6), there’s no surprise that Hilo and HPP remain extremely popular. Remember that the projected demand is calculated using the number sold in Quarter 1 times 4 and comparing it to the number of active listings added to those contingent/under contract. Most of the contingent sales will move to close which, in reality, pushes the number of homes available to meet demand even lower.
Interestingly, my buyer was recently in back-up position for a home priced over 2 million in Hilo (local buyer). I am told there were 5 offers. This demonstrates demand for higher priced homes even in Hilo and it’s not unusual to see homes over $800,000 moving to close in HPP. Local buyers normally hover around the $450,000 price point. There are few financeable homes in Hilo and only a handful in HPP listed at that price. This seems to push local buyers to Ainaloa where insurance is still readily available.
Factors Influencing Buyer Choices
Homes in HPP tend to be newer and offer more land than a comparable home in Hilo. HPP roads will eventually all be paved. Ainaloa homes are on smaller lots and, of course, both HPP and Ainaloa rely mainly on catchment water. Right now, Nanawale seems to have the most homes available. Prices are also most affordable.
Challenges in Lava Zones and Market Predictions
Insurance and loan programs are, of course, a problem in the so-called “lava zones” (1 & 2). In general, rates are hovering under 7% which isn’t terrible but affect a buyer’s ability to buy. We are told that rate decreases are coming but don’t expect to see 3% again soon. Price reductions are happening but prices still generally remain above of last year. National predictions are that inventory will increase but with demand so high, it seems unlikely this will affect pricing for the near term.
Personalized Home Valuation
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Whether buying or selling, Team Nakanishi is always here to help. Onward to the rest of 2024!
*Thanks to Hawaii Information for the data included here.
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