Anaha #3208 MLS 202116740

$1.4million, 1 bed 1 bath, 1 parking condo at Anaha
Listed by The Kawaguchi Group
eXp Realty Luxury Collection

The past year or so has been a mystery as far as the market goes, but now we are starting to understand it. We predict prices will continue to rise for at least another year. 

Sales of single-family homes rose 49.3%, and condo sales skyrocketed 134.0% compared to this time last year when people were afraid to buy condos.

The condo market is now picking up quickly, so while prices dropped last year, they are now higher than ever.

What is happening?  Covid kept people from buying real estate for a year, and now there is a 2 year demand entering into a lower than normal supply.  

Waikiki is completely packed, hotels are full, restaurants on Oahu are booked 2 months out.  That's the sign that the pandemic fear is gone, and everyone wants to come to Hawaii, and maybe buy a house while they are at it.

If you're waiting for a correction, you'll probably be waiting a long time. 

CONGRATULATIONS to Lex Ferguson for this beautiful Anaha sale! His special client will have a very short commute to work in this Ward Village building! Ocean views, resort-like amenities with a golf simulator, tennis courts, gymnasium, billiards room, movie theatre, elegant chef kitchen, spacious nine-foot ceilings, located right across from world-famous beaches, make this the pinnacle of luxury living in Honolulu. Contact Lex for more information at www.AlohaTony.com

Congratulations to our clients who closed today on the $4.8mil purchase of this beautiful beach house in Diamond Head!

With deeded private beach access, this gorgeous beach home is one of my favorite properties on Oahu. Complete with a modern three level pool and spa, this is like a mini beach resort! 

Check out the gorgeous ocean view from the lanai over Cromwell's beach.

And the spacious kitchen and living area with stacking sliding doors to create the wide open, indoor-outdoor living space.

This great kitchen has space for everyone, a beautiful gas range, and a dine in nook.  Just perfect! 

And where is the beach? Just a few houses down the private road to a private gate, to the quiet, very secluded sandy beach! 

CONGRATULATIONS to JENNIFER HAOLE for the sale of this beautiful home in Ka'a'a'wa! Gorgeous views of the Ko'olaus and just steps from the beautiful beach and turquoise water. This upgraded, remodelled home in a quiet, rural neighborhood was the right fit for Jennifer's clients who will be enjoying many tropical fruits from the trees in their yard after a swim or after basketball or a stroll through the nearby park. If you are looking for your slice of Paradise, contact Jennifer at www.AlohaTony.com and start your search for the right property for you!

Hawaii real estate prices have gone up rapidly for the past several years, and this week the Board of Realtors said that median home prices have now reached $978,000, while median condo prices reached $457,750.  Activity was up, with the average home selling in only 8 days.

And I still think Hawaii real estate is undervalued by a lot. 

Since Covid began, we have had many clients moving from CA, NY, NJ, WA, and other states, where people sold their $3 million homes and moved to Hawaii seeking 'paradise.'  Most of the buyers felt that Hawaii real estate prices were low, especially when property tax is taken into consideration.  

I'll compare 2 similar homes to prove my point. 

The first one is this marina front home in Huntington Beach, CA, for $3,495,000, with property taxes of $3641 per month.  Yes, the taxes alone are $43,692 per year.  I grew up in HB and moved to Hawaii 16 years ago, and I think Hawaii Kai is a very similar town that is worth comparing.  

In HB right now, this property is in escrow - 3380 sqft, 4 bed, 3.5 bath, a beautiful home with a dock. This is in the neighborhood where my dad lived for many years, Huntington Harbor. 

It has a beautiful kitchen, wide open living space, and is fully renovated, being built in 1976. 

So how does it compare to Hawaii? 

The house below just sold in Hawaii Kai for $2.92mil, $580k less in price, BUT nearly a million less with property tax considered. The Hawaii Kai marina front property has property taxes of only $1083 per month - that's $2558 less per month in taxes. 

For reference, $2558 per month can cover about $550,000 of mortgage at 3.75%. 

So when you factor in the property tax, the house in CA costs $1million more than a similar house in Hawaii Kai, on the East side of Oahu, the nicest part in my opinion.

This was actually my next door neighbor about 14 years ago.  It has a beautiful wide open layout just like the house in CA. 

And this Hawaii Kai property also had a pool AND a legal rental upstairs, so I can easily add another $500k to the comparison! 

Bottom line - A similar property in CA will cost you about $1million - $1.5mil more after factoring the property tax, and the one in Hawaii even has a rental that likely rents for over $2500 per month.  

Hawaii real estate is still WAY under valued, and in my opinion could run higher for the next 2-3 years, until people stop fleeing CA and WA.  When will that be?  

The telecommuter era is upon us. Zoom and Google Meet are the new way to do business. Silicon Valley is a dumpster fire, and people want to escape to Hawaii.  

Our new $5.99mil beach front listing on the North Shore is gorgeous and has a beautiful sandy beach in front of it!

Click the photo for a preview of the property: 

More than half of single-family homes – 58.9% to be exact – sold above the asking price last month. Meanwhile, high demand for single-family homes continues to keep the median days on market at a low of just nine days.
 
In April, 30.9% of condos sold above the asking price and condo properties spent a median of 13 days on the market, which tied the record low set in June 2017.

“A year ago, O‘ahu’s real estate market saw a steep decline in sales and listings as we were confronted with uncertainty about the pandemic’s impact on our community and economy,” said Shannon Heaven, president, Honolulu Board of REALTORS^®. “Sustained demand and low inventory levels remain constants in our real estate market and when paired with historically low interest rates, it creates the fast-paced, competitive environment we see in today’s market.”

Nothing can stop the real estate market right now!

It's a very Happy Aloha Friday for Jeremy Cheng's clients! They just closed on a 3BR home in Ewa! Thanks to Jermy and our escrow officers at Title Guaranty, and their loan officer Tyker Olds, it was a smooth and successful transaction! If you are looking for a home in Ewa Beach and want to work with a dedicated Realtor, please contact Jeremy Cheng at www.AlohaTony.com today!