The property pictured above, MLS 627972, is a Hawaiian Paradise Park home—15-1014 Pilikai Ave—listed for sale at $875K by Tom Williams.
Each summer as we write our July newsletter, we take a look at real estate market trends in Hawaiian Paradise Park, a large rural subdivision located in East Hawaii’s Puna district. (HPP, as it is often called, is the second-largest residential subdivision in the United States. Buyers are drawn to HPP for its convenience, affordability, lot sizes and access to the coastline.) Market trends in this community, which is in Lava Zone 3, are a good indicator of what is happening in East Hawaii outside of the Lower East Rift Zone (Lava Zones 1 & 2).
An interesting data point to note in this year’s chart is that we can now see that the number of sales in HPP reached a peak (since Q3 2005) in Q3 of 2018 with 90 homes sold that quarter compared to an average of 70 homes sold per quarter in 2017 and the first two quarters of 2018. In the following quarter, Q4 2018, the median price also reached a post-2005 peak at $305,000 for a single-family home.
After Q3 2018, the pace of sales has dropped back down into the lower 70s again and the median price has dropped back below $300,000.
It is too soon to determine if we will be looking back at 2018 as a market peak in the post-recession real estate cycle. There are too many economic and political factors at play to make that call this early on. That said, Sellers should be keeping a close eye on these trends. If you are considering listing your home, this is a good time to get into the market. Please contact one of our agents or our Relocation team if you would like a more detailed market report or have questions about another neighborhood.