The property pictured above, MLS 611009, is a Hawaiian Paradise Park home—15-1682 4th Ave—listed for sale at $369K by Julie Cox, Shelley Shimabukuro and Pat Halpern.
Hawaiian Paradise Park, located in East Hawaii’s Puna district, is the second largest residential subdivision in the United States. Market trends in this community are especially of interest during lava flow events like the 2014 flow and the current East Rift Zone eruption since HPP is in Lava Zone 3, which means insurance moratoriums affecting Lava Zones 1 and 2 do not extend to Hawaiian Paradise Park properties.
Reports from our agents working in the area indicate an uptick in interest in HPP as insurance settlements start trickling in for Puna residents displaced by the current Kilauea and East Rift Zone activity. In Q2 2018, there were 77 home sales with a median price of $294,000. There were also 54 land sales in Q2 with a median price of $37,450, the highest quarterly median price since Q3 2008.
As noted above, data shows a slight increase in the pace of sales in Hawaiian Paradise Park in Q2 2018, due to the jump in closings in June. The chart below provides a closer look at the number of monthly sales for the last year.
REO sales in HPP have been dropping since Q3 2017. There were only 6 foreclosure sales in Q2 2018.
In 2018, buyers in Hawaiian Paradise Park are primarily purchasing homes with conventional bank loans, with cash, or, in a few cases, with a combination of the two. In Q1 and Q2, there were also 19 home purchases made with USDA loans, 17 purchases with VA loans and four using FHA loans.
These totals are based on data provided by agents reporting closed sales to Hawaii Information Service, our local MLS.
Hawaiian Paradise Park is considered, by many, one of the most accessible places in Hawaii to purchase a home due to its relative affordability. Many retirees from pricier areas like Oahu and California focus their searches in this area so they can purchase a home with cash. Most lots in HPP are one acre and there are few building restrictions. Many of these same retirees appreciate the space from neighbors but also do not want the responsibility of maintaining larger acreage parcels. Demand from this demographic seems to be holding steady at this time.
Investors are focused on the demand for rental housing. The already high demand for affordable Big Island rental properties has been exacerbated recently by the unexpected need for East Rift Zone residents to relocate quickly. Early indicators show that some of the demand for these properties has led to increased interest in Hawaiian Paradise Park.
Albizia trees, one of the fastest growing types of trees in the world, are an invasive threat to Hawaii’s natural and built environment and, unfortunately, have a significant presence in Puna. The good news for HPP resident is that Albizia trees are now being controlled up to 100 feet off of Makuu Drive. Removal of these hazardous albizia trees began on June 18th of this year. Makuu Drive links Railroad Avenue (a County Emergency Access Road in the heart of HPP) to Highway 130 at the top of the subdivision.
For more information, download the Makuu Street Albizia Control Project flyer (PDF).