Posts: 212
Threads: 22
Joined: Aug 2005
There are 193 under 250K and 53 under $175K with total at 672, just in the Puna area.
Last August there was'nt even a non permitted house for that price. Given the current inventory and based on the previous pre-boom price, I am guessing the average price in this area will settle between 150K - 250K.
Ajit
Edited by - adias on 07/25/2006 09:24:29
Posts: 2,149
Threads: 90
Joined: Feb 2006
The phenomenal run-up in Puna land and home prices in 2004-2005 was, IMHO, fueled in large part by speculation. Now that the speculative frenzy has died down, land prices have been the first to correct because they are at the start of the spec pipeline. Home prices now seem to also be correcting, and homes are staying on the market far longer than last year. As there are still quite a few spec houses in the construction pipeline, there should be continuing restraint on home price increases for a while.
Notice I said correct, not crash. The underlying demographics of retiring baby boomers (like me) and relative affordability of Puna vs. the rest of Hawaii and some parts of the mainland should keep things from dropping off a cliff. The exceptionally long amount of time it takes to complete a house on the Big Island could keep the downward pressure on home prices going a while longer. (Does it take a year or longer to build a house anywhere else in the USA? Or anywhere in the world?)
At any rate, we might be in a window of affordability for a while before "normal" market factors push things higher. I am an avid amateur observer, so maybe some of the real estate pros can give more informed opinions.
Aloha,
Jerry
Posts: 735
Threads: 20
Joined: May 2006
I don't trust the realestate people. They are in the business to sell, sell, sell! Just look at those that use this forum as free advertising. Of course they aren't going to say prices are going to collapse.
I am starting to see something new from them. They are beginning to admit that prices have come down. A few months ago they were denying it completely.
Noone has a crytal ball and can predict what a market will do. I believe the forcasts from people in the realestate business are clouded by bias and wishfull thinking. I would listen more to economists and other business people who are not directly in the realestate business.
Posts: 942
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Well, then, I'll just sit quietly over here in the corner, since my opinion as someone who works full-time in the industry is not wanted...<wink>
John Dirgo, RA, ABR, e-PRO
Island Trust Properties, LLC
808-987-9243 cell
Posts: 2,314
Threads: 59
Joined: Jun 2003
Well, then, I'll just sit quietly over here in the corner, since my opinion as someone who works full-time in the industry is not wanted...<wink>
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185
Posts: 2,314
Threads: 59
Joined: Jun 2003
I e-mailed you privately an article about Hawaii real estate. It might help you to see a clearer picture.
quote:
I don't trust the realestate people. They are in the business to sell, sell, sell! Just look at those that use this forum as free advertising. Of course they aren't going to say prices are going to collapse.
I am starting to see something new from them. They are beginning to admit that prices have come down. A few months ago they were denying it completely.
Noone has a crytal ball and can predict what a market will do. I believe the forcasts from people in the realestate business are clouded by bias and wishfull thinking. I would listen more to economists and other business people who are not directly in the realestate business.
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185
Posts: 2,149
Threads: 90
Joined: Feb 2006
John, please either post or email me the article you mentioned. I value your opinion and would like to read the article.
Thanks,
Jerry
Posts: 1,516
Threads: 81
Joined: Dec 2005
I think that word of mouth will give someone business...not just posting here. I was getting private emails from several people who already used John Dirgo as a Buyer's Rep and based upon their high opinion of his practice and procedure (not to mention his friendly and business-like disposition) we chose him to guide us through the process. Glad we did!!
P.S. - We also heard great stuff about Victoria Mauck and John Rabi's other team members.
Carrie
"The opportunities to reach into the lives of others in an inspiring way arise in countless ways every single day..." Dr. Wayne W. Dyer
http://www.hellophoenix.com/art
Edited by - carolann r on 07/25/2006 11:40:16
Posts: 212
Threads: 22
Joined: Aug 2005
It would be good to hear an expert opinion from both John Dirgo and John S. Rabi on this issue.
As real estate professionals both should have hard numbers to validate the Real-Estate situation in Puna.
Ajit
Edited by - adias on 07/25/2006 12:09:36
Posts: 4,533
Threads: 241
Joined: Jan 2006
Okay maybe I am more upset than the Johns!
John and John, Keep posting!!!!! I for one enjoy and appreciate your input. Knowing that you are in the real estate business and hearing good things about both of you assures me that when you give an opinion here, it is both accurate and honest. I wouldnt ask my grocer to tell me if land pricing is going down or up or what trends they are seeing. As I understand, both Johns get much business by referrals. That pretty much says a lot about their integrity. As for their signature, I think they are being upfront about their profession rather than lurking.
Hey bystander, how do you think RE's do comps? They compare current pricing on lots available, and sales trends in previous months. (Boys, correct me if I am far off.)
Okay my rant is done!
Catherine Dumond
Blue Water Project Management
http://kmastudios.125mb.com/bluewaterpm/...rhome.html
808 217-7578
"We help make building your dream home a reality"
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