In 2016, the Big Island saw an increase of construction projects and continued population growth, which contributed to a greater number of home sales compared to the year before. (May and July in particular blew 2015’s numbers out of the water.) As a district, Puna’s rate of growth was the highest on the island this year and the comparatively low cost of living continues to draw residents of other Hawaiian islands to the area.
As the 2nd largest subdivision in the United States, Hawaiian Paradise Park, is a good barometer for the East Hawaii market.
The total number of HPP homes sold in 2016 was 260 compared to 215 sold in 2015 and 169 sold in 2014. Rental properties are becoming harder and harder to find because so many people are making the investment in purchasing a home.
This chart shows the median sale price trend for the full year:
As a monthly comparison, the lowest median price in 2016 was $215,000 in March compared with a significantly lower $197,450 in June of 2015.
To see all HPP homes currently for sale click here.
When it comes to purchasing property, there are a number of loan options available to buyers looking to purchase in East Hawaii.
A conventional loan, which is not insured by a government agency, was the most commonly utilized loan by HPP buyers in 2016. Cash offers came in at the second most popular, a trend that has been increasing and comes with a whole slew of benefits if you can make it happen. As Clark Realty’s President, Frank Goodale, said in a recent interview, the retiree market is moving into Puna and it is these buyers that tend to have the capital for a cash purchase.
Less publicized than others, USDA loans, which can only be used for properties outside a metropolitan area, and are backed the U.S. Department of Agriculture. Puna is an eligible area for a USDA loan and demand is growing since these loans require no down payment, although most lenders will require a FICO credit score of 620 or higher and your debt-to-income ratio will be a factor in how much you can borrow.
Hawaiian Paradise Park (also known as HPP or The Park) was established in 1960 and is located approximately 14 miles from Hilo and 6 miles from Pahoa town. HPP is the second largest subdivision in the U.S., running from the top of Hwy 130 to the ocean, covering 15.2 square miles with 137 miles of roadway. The style of homes in Hawaiian Paradise Park varies from simple rustic studios to elegant oceanfront mansions. One of the best features of HPP is the climate with the average temperature of 80 degrees. Occasional passing showers create a lush tropical environment perfect for gardening or even orchid farming.
If you would like to see available properties in HPP, please contact me.