Highest Ko Olina Kai Townhome Sale Since December 2007
Ko Olina Resort Real Estate is Heating Up in 2013
On July 26, 2013 I closed what is now the HIGHEST Ko Olina Kai townhome sale since late 2007! It has been 67 months, or more than 5 1/2 years, since Ko Olina Kai Golf Estates and Villas has seen a townhome sell for anywhere near $625,000.
Between the sale back in Dec. 2007 and today, 78 other 2BR and 3BR townhomes have sold, with prices starting as low as $377,500 and with one sale going as high as $610,000 in Nov. 2008, nearly 5 years ago at the time of this writing.
How I Sold It For $65,000 MORE Than the Closest Comparable
When I listed this 3BR/3BA Ko Olina Kai property in April 2013 numerous Realtors® called me to inquire as to why I had priced it so high and to ask how I planned to sell it. Some were convinced that there was no way it would sell without a major price reduction. Granted, most of these agents did not live in Ko Olina, as I do, and did not have a realistic pulse on what was happening within each of the resort communities.
The most recent sales of comparable 3BR/3BA townhomes had all closed for right around $560,000, creating a $65,000 gap between my list price and the comparable properties! I told the agents that I expected to sell the property for the list price because I believed it was worth that and more!
Of course, a property is only worth what a buyer is willing to pay and many people simply assumed that the property would not appraise for the asking price – but it did. Several qualified buyers expressed serious interest, we were able to get the deal done, and now the buyers are excited to move-in!
What Was Holding Prices Down in Ko Olina Kai?
- Other communities in Ko Olina were starting to blow up in price, yet nothing seemed to be happening in Ko Olina Kai. Since this development was completed around the same time the housing market took a major downturn, there were many owners that had purchased at the peak of the market who then witnessed first-hand dramatic falls in value while the markets corrected. This resulted in numerous short sales and further drove the values down.
- Many of the owners who were able to hold on were not in a favorable position to sell, resulting in a lack of available re-sale inventory. Some of the other Ko Olina communities were not as severely affected and were able to rebound more quickly. This particular transaction marks an important turning point for Ko Olina Kai townhomes, though the fate of single family home values in the community remains to be seen.
Active Ko Olina Kai Listings
There are 8 homes currently for sale in Ko Olina Kai, with list prices ranging from $959,000 to $1,498,000. While there have been prospective buyers looking…nothing seems to be moving yet with the single family homes. This could soon change, but it may require further price reductions in order to make the deals happen.
Where Will Things Go From Here?
Naturally, there is no way anyone can predict future market dynamics with complete accuracy. We all have our opinions and my expectation is that there will continue to be many qualified buyers ready and willing to purchase property throughout Ko Olina over the next 6-12 months. However, many of them could be priced out of the market quickly if prices rise at too rapid a pace and/or if interest rates go up significantly.
Ko Olina property owners that are waiting for the most opportune time to sell should be mindful that as prices and interest rates continue to rise, there will likely be fewer buyers able to make a deal happen. With interest rates still at low levels and prices strengthening, those that have been waiting to sell may want to take another look now to see if it may be the right time to make it happen.
If you are in such a position then let me know and I can provide you with a complimentary market analysis for your property to determine what it may be able to sell for.
Aloha from sunny Ko Olina,
Munro Murdock (RA, MBA)
808-492-6242
Contact me to learn more about Ko Olina Resort real estate, vacation rental bookings and management, or to schedule a complimentary ‘Golf Cart Tour’ of the resort.
About Munro Murdock, RA
Prior to launching his Hawaii real estate career, Munro traveled throughout the United States, Canada and the Caribbean where he was involved in various projects related to real estate, entrepreneurship, sales, management and marketing. He recently achieved one of his life goals when he received an MBA degree after two years of weekend business school courses. Munro is a high-energy tech-savvy real-estate professional who is committed to continuous learning and growth. He is passionate about listening to his clients so that he can help them achieve their goals and create their ideal lifestyle. Munro’s hobbies include photography, running, cycling, standup paddle boarding and SCUBA diving. He resides in the Ko Olina Resort in Kapolei, Hawaii with his wife and three children.
