Waialae Iki Shows Strength Into 2011
By Lisa Scontras
In the midst of today’s housing market woes, one Oahu neighborhood has weathered the economic downturn and is emerging as a real estate hot spot for 2011.
Home prices in the sleeper community of Waialae Iki have remained steady in recent years, despite the fact that sales in some island neighborhoods have dropped off.
The allure, according to Glen Fujihara, Realtor and partner at Prudential Locations, goes back to what made these homes popular when the development was originally built in the 1960s – as a less expensive alternative to Kahala.
“The appeal of Waialae Iki is stronger today than it’s been in 10 years,” says Fujihara. “It was one of the first hillside communities built in the ’60’s, as kind of an extension of Kahala. Some people wanted a view and a new house.”
Today, the same views that attracted a movement to buy 40 years ago, are keeping home values and sales volume strong.
According to the Research Department at Prudential Locations, the median sale price in Waialae Iki in 2010 is $1.3 million, down just $35,000 from its peak of $1,335,000 in 2007, but up from 2008 and 2009 figures.
Located on the hillside above Waialae Country Club, 1,153 homes make up the neighborhood of Waialae Iki. The established neighborhood is today appealing to a new generation of young professionals, who perhaps like the original buyers, want a home that is close to Kahala, but one that is not as pricey.
“For the median price of $1.3 million, you can get a much nicer house in Waialae Iki,” Fujihara says. “Which explains the increase in sales and median prices in 2010.”
The attractiveness of Waialae Iki is so strong, that some who grew up here are now returning as buyers. One such case is Robin Markle.
“There is a real sense of community, people up there know each other, they’re friends, they know each other’s dog’s names,” says Markle, vice president of new home sales at Prudential Locations, who recently bought a home on the street where she spent her childhood.
And Markle is not alone. The next generation of homeowners are returning to Waialae Iki where they grew up. Many are either remodeling or rebuilding their family homes.
“I’ve lived all over the island and I came back to Waialae Iki because I like to be able to see the ocean every morning,” says Markle.
In addition to the increase in sales prices, sales volume is also up in the neighborhood. The number of sales to date this year through October total 31, already higher than the year-end totals of 30 in 2009, 28 in 2008 and 27 in 2007.
Desirability is also evident by the fact that only 8 homes are currently on the market in Waialae Iki, which translates to 2.3 months of inventory remaining. With demand high and supply low, the market is poised to continue to do well into 2011.
“For a neighborhood of 1,100 homes to only have eight homes on the market, is very low,” says Fujihara. “The low supply of inventory, makes it a great time for anyone who is thinking of selling to put their home on the market. But sellers need to price their home fairly.”
Fujihara says that Waialae Iki’s incredible views plus its proximity to town, shopping centers, public and private schools, fine dining, beaches and parks are what make the community so popular.
The neighborhood’s hotter than ever status is confirmed by the number of days it takes a seller to receive a contract and open escrow on their sale. This year, the average DOM statistic for Waialae Iki is 29 days, down from 51 one year ago.
“The 2010 DOM matches 2004 stats when the market was moving at its fastest.”
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