04-15-2006, 01:20 AM
I think a lot of property in Puna was quite underpriced as recently as 2003, and it remains a bargain compared to less attractive places like the Northeast, Chicago, and parts of California. There does seem to be a correction of sorts going on, though, probably in reaction to a buying frenzy in 2005. A realtor friend told me last August that people were getting off planes and buying almost in a panic for fear they would not be able to afford anything if they waited much longer. That of course bid prices up even higher. Things seem to be settling down now, and a lot of speculative houses started by contractors at the height of the frenzy will be coming on the market soon, probably keeping a lid on prices. Land prices in my area (HPP) have actually dropped lately, and homes are staying on the market much longer than a year ago. Things have a way of balancing out, but I don't think we will see those 2002 prices any time soon.