North Kona Home Sales

A NEW CLIENT RECENTLY ASKED WHY she saw so many units available in Alii Lani. The answer I gave her was a bit complicated. I have reprinted it here.

FIRST ALII LANI IS A HUGE COMPLEX and so a normal percentage of units on the market there appears to be a lot when you just look at Realtor.com. Many units that might have already sold are piling up in this very slow market. That exaggerates the appearance even more. When supply and demand comes into play a big supply develops in a market where there is not much demand. Usually that triggers price reductions – and those have happened. In this Kona market some of the sellers purchased near the top of the market and cannot reduce their prices without taking a loss. Some of those who are upside down cannot sell without bringing cash to the table. Many of the sellers can pay the payments indefinitely. Some sellers are original purchasers who paid a fraction of what they are asking for the units. Their condos may cost very little to keep, and those sellers very often wait out the market. As a rule the Hawaiian buyer is well heeled and so we don’t get a lot of panic selling here. There are always a few individuals who have a need or strong desire to sell. Some simply see a better use for their investment dollar. Those sellers sometimes undercut the market and sell pretty quickly. The challenge for the buyer is recognising a great price and getting to those offerings quickly.

ALII LANI IS IN COMPITITION with newer products. The design at Alii Lani is cute as a button. They are just perfect for their original target market. People I know who own them are very happy with their condos. But they were not built to be a high-end product. For example, air conditioning when provided is by way of window Ac’s. I sometimes hear complaints about noise between the units. Newer complexes like Kona Sea Ridge, Alii Cove and Alii Park Place have come on the market in the past few years. Each newer complex offered more in the way of size, amenities and quality materials. Some of the Alii Lani owners would like to move on to those newer complexes. As with the market throughout the nation, people are having difficulty finding a buyer so they can move up. Some of the listings you see there are people who don’t have to sell. If they get their price they will move up to the more luxurious new properties. Many will happily remain as Alii Lani until they can sell on their own terms.

THE ALII LANI CONDOS ARE QUITE NICE. They are a bit small but make wonderful second homes. They are a great place to get your foot in Hawaii. If you are interested in pursuing a purchase there I will send photos, listings, a site plan and the history of sales in that complex over the past couple of years so you can look for patterns. This may be the perfect time to either get a great price or to shop for the most desirable units within the complex.

Joyce Murphy, Realtor Broker BIC
Hawaiian Isle Real Estate LLC and Luxury Real Estate Florida, Inc.
“In Real Estate, Experience Counts!”
808-443-4302 / 808-327-1155
More Kona Real Estate Information at Joyce@KonaBigIsland.com
www.LuxuryRealEstateHI.com

Filed under: Living in Kona, Real Estate Information