Makakilo’s Bright Future Woos Buyers

Cool breezes offer relief from the summer swelter. It’s where young families are able to enjoy affordable homes and roomy lots. Folks in Makakilo are happy with their choice of homes, and for good reason.The schools are great and the outlook of new job opportunities make it easy to see why Makakilo is rising to the top of the list of best places to live, work and buy on Oahu.

For buyers, the enticement is more house for the money.

“There were two large scale development periods in Makakilo,”says Brandon Lau, Realtor at Prudential Locations.”The first increment, completed in the 1970s, included generously-sized residential lots and a mix of two- and three-bedroom homes and townhomes on the lower portion of Makakilo – all with decent-sized yards.And more recently, newly constructed, smaller homes and townhomes have sprung up on the upper slopes.”

Certainly, large yards, new construction and great views of the ocean are wish-list items that draw buyers to this Leeward neighborhood – and are all affordably priced. But families looking to live grandly within their means can set their sights high in Makakilo and still keep monthly mortgage payments low.

“The affordable home prices tend to draw a lot of younger families and military buyers,”says Lau, who has recently closed six transactions in the area.

Of course, home sales have slowed with the economy and the prices reflect that.This is good news for those in the market for affordability to take advantage. No doubt Makakilo is affordable, more now than ever.Add to that, historically low interest rates, and buying in Makakilo becomes a real bargain.

First developed in 1959, Makakilo has never stopped growing. Hundreds of new homes have been built over the last couple of decades to help fill the tremendous need for affordable housing as well as a diverse mix of high-end, castles-in-the-sky dream homes perched on premium lots at the top of the hill.

Makakilo’s value continues to accelerate with the development of Oahu’s Second City, which began in the early 1990s. Once an expanse of cane fields bordering the Barbers Point Naval Air Station, Kapolei has rapidly transformed Makakilo’s doorstep into a thriving economic hub overflowing with opportunity. Following the recent grand openings of big box stores such as Target and Costco, the continually emerging Second City’s growth is slated to include the island’s largest Down to Earth store,Walt Disney’s new hotel and time share resort at KoOlina,as well as the University of Hawaii West Oahu campus – not to mention Kapolei’s role as the anchor point for Oahu’s proposed rail transit. All of this is expected to create thousands of new jobs.

“The developing Second City of Kapolei is exciting for Makakilo residents who benefit from new shopping venues like Kapolei Commons, the ongoing improvements in KoOlina, and newer schools such as Island Pacific Academy,” says Lau.

Single-family home sales volume in Makakilo significantly improved in 2009 from 2008, from 82 sales to 121 sales last year. Prices during that same period, however, dropped, from a median sale price of $555,000 in 2008 to $485,000 in 2009. So far, the number of sales in 2010 -as of June 30 – is at 41, and the MSP is up again, to $545,000.

Overall, Oahu’s median sold price this year currently stands at $587,250 – Makakilo homes were just under the island’s average at $545,000.And of the homes sold this year, Oahu’s average lot size is 5,834 square feet, and the average sized lot of homes sold in Makakilo measures 6,271.

Bigger lots boasting more affordable prices, along with views, cooler temperatures, and a growing infrastructure of neighborhood businesses distinguish real estate in Makakilo.

“The affordability of single-family properties in Makakilo will continue to make it a desirable area for younger families and military personnel,”says Lau. “Having an ocean view, being at the doorstep of the Second City and paying 7 percent less than the median sales price on Oahu is not a bad deal.”