Supply Is Low, Demand High In Kaneohe
By Lisa Scontras
A low inventory of homes for sale coupled with a high supply of permanent residents who have lived there for generations has kept demand for housing high in the Windward neighborhood of Kaneohe.
“We have been running about 50 percent of the amount of inventory that is typically for sale,” says Pat Gardner, Kaneohe resident of 22 years and Realtor Associate at Prudential Locations. “The limited inventory is keeping prices firm and there have even been some gentle increases. New inventory that is properly prepared and priced is typically gone in a week, maybe two, many times with multiple offers.”
The neighborhood’s appeal has to do with the laid back, friendly feeling and the natural beauty of the surrounding Koolau Mountains.
“I grew up in Foster Village near the stadium and lived in Pearl City, Waialua, Pupukea, Laie, Kahaluu and now Kaneohe,” says Gardner. “I was fortunate to travel extensively throughout Europe and the mainland and I think that Kaneohe is one of the most amazing places on earth.”
Currently, the strongest segment of the housing market in Kaneohe is with homes priced between $550,000 and $650,000, according to Gardner. And in that price range, the homes don’t need to be upgraded but should be well maintained and in move-in condition. Upgraded homes, with new kitchens, baths and flooring can command prices into the $700,000 range and up to $900,000 depending on the lot size and the neighborhood.
“There are certain neighborhoods that have had the same families for generations and when something becomes available it is gone in a flash,” Gardner says. “Lot sizes come in a close second. Most Kaneohe buyers want a yard that kids and pets can play in and room for entertaining family and friends.”
The real value in Kaneohe is in the neighborhood. A home’s square footage is less important.
“People will choose a small home with limited bathrooms and older amenities just to get into a particular neighborhood,” she says. “Our family of seven moved to Pikoiloa in 1999 and had only 1,200 square feet and only one shower! But we were tickled pink to own our little piece of heaven with room to expand later on.”
Median sales prices for the area in 2010 compared to 2009 are up 2 percent to $634,000 for a
single-family home and down slightly to $365,000 from $375,000 for a condo. Sales volume is up in both categories.
“Demand is higher than supply so prices are bound to rise,” she says.
And while prices may not be quite back up to the highs from 2007, the value of a home in Kaneohe is only truly realized once you’re living there.
“There is nothing quite like being in town for the day and driving back home through any of the tunnels and seeing Kaneohe spread out before you,” she describes. “Many people share that they feel a huge sense of relief and a complete change of attitude as they exit the tunnel on the other side.”
Typically, the demographics include a mix of ethnicities, mostly long-time local families, and often multiple generations. At elementary school functions, it is not uncommon to see many grandparents there to share the day with their grandchild. Historically, residents love the area and many don’t leave.
“At my husband’s 25th high school reunion, more than 250 of his classmates attended and almost all of them still live in the area,” she said.
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