04-20-2024, 03:28 AM
(This post was last modified: 04-20-2024, 03:29 AM by keaau mary.)
(04-15-2024, 08:16 PM)We have 2 new homes being built and another lot just got ripped on our little dead end street. One is right next to what we call Shanty town. Who would buy that? I know one is a Honolulu developer.terracore Wrote: It's not just HPP. There's a bunch for sale in Ainaloa, Orchidland, and some in Hawaiian Acres (and more on the way). Most of these homes were built on the correct properties!
Although the homes look very similar in build and appearance, it's not all the same developer.
There's a bunch of reasons why things got this way. After the Leilani eruption there was a call out for developers to build and then COVID hit and mainlanders bought up all the inventory in an already tight market. Developers from Oahu and Maui were drawn by the "cheap" land prices and started building these cookie cutter homes with higher end finishes and they were selling for asking price. With the fresh dopamine hits the easy money was giving them they put development into overdrive but then everything hit a snag: high mortgage interest rates. Sales slowed but they continued- even in the high interest environment people were still moving here from the mainland and the other islands, often times paying cash after selling their homes in hotter markets. But then another snag- the insurers for LZ2 pulled out putting a lot of downward pressure on prices there. People want to move out of LZ2 and buy these new homes in LZ3, but they can't sell their homes in LZ2. Meanwhile there are price drops on brand new construction every couple of days, making the newer (but not brand new) homes harder to sell.
Some of the land lots that were purchased for construction were sight unseen. I've seen a few that were built right next to rooster farms. And for some reason, nobody wants to live next to one! I saw one next to a rooster farm that had separate living areas with the garage in between them. Sounds great, right? But there were no doors in the garage to access either of the living spaces. And there was only one kitchen. So how do the people living on the other side of the garage get food? Easy- leave their front door, go outside, enjoy the roosters, and go in the other front door.
(04-15-2024, 08:16 PM)terracore Wrote: It's not just HPP. There's a bunch for sale in Ainaloa, Orchidland, and some in Hawaiian Acres (and more on the way). Most of these homes were built on the correct properties!
Although the homes look very similar in build and appearance, it's not all the same developer.
There's a bunch of reasons why things got this way. After the Leilani eruption there was a call out for developers to build and then COVID hit and mainlanders bought up all the inventory in an already tight market. Developers from Oahu and Maui were drawn by the "cheap" land prices and started building these cookie cutter homes with higher end finishes and they were selling for asking price. With the fresh dopamine hits the easy money was giving them they put development into overdrive but then everything hit a snag: high mortgage interest rates. Sales slowed but they continued- even in the high interest environment people were still moving here from the mainland and the other islands, often times paying cash after selling their homes in hotter markets. But then another snag- the insurers for LZ2 pulled out putting a lot of downward pressure on prices there. People want to move out of LZ2 and buy these new homes in LZ3, but they can't sell their homes in LZ2. Meanwhile there are price drops on brand new construction every couple of days, making the newer (but not brand new) homes harder to sell.
Some of the land lots that were purchased for construction were sight unseen. I've seen a few that were built right next to rooster farms. And for some reason, nobody wants to live next to one! I saw one next to a rooster farm that had separate living areas with the garage in between them. Sounds great, right? But there were no doors in the garage to access either of the living spaces. And there was only one kitchen. So how do the people living on the other side of the garage get food? Easy- leave their front door, go outside, enjoy the roosters, and go in the other front door.
Mahalo!