Putting Pahoa in Perspective
“Puna is one of the most beautiful parts of Hawaii and people have continued to move here and build here despite the presence of an active volcano,” Kenny said. “The area is green and fertile, some of the state’s best farming country. Currently our biggest problem is overreaction to the Pahoa flow by the lenders and insurance companies who have made it impossible for people to finance the purchase of a home in about one third of the Puna area. And many people will choose to move … but not because the flow is threatening their homes. The Pahoa flow is only about 50 yards wide at its front and so far has destroyed two structures located outside town. As it continues on its way to the sea, provided it stays on its current path, a small number of additional homes could be threatened … but it will certainly cross Highway 130 and cut off access to Keaau and Hilo if it continues to flow.
“Without highway access to communities on the northwest side of the lava flow, a commute that normally would take 20 minutes will now take two to four hours. If that happens and the flow does hit the ocean, then the only other available route is through Hawaii Volcanoes National Park on Chain of Craters Road. Consequently, many homeowners are trying to sell and move to the Hilo area or find rentals.
“I receive about 20 phone calls a day at our offices in Hilo and in Pahoa, where I could literally hit a golf ball to the front of the lava flow, from people panicked by the situation created by the lack of financing and insurance. They want to sell and move to regain access to their jobs and children’s schools, but know they would have to practically give away their property or wait for a cash buyer, since financing is currently impossible. If they rent in the Hilo area, they would be paying that cost on top of their mortgage. With the devaluation of Puna properties caused by the inability to finance, people are picking up 8,000-square-foot lots for as low as $3,000.
“The message our Big Island Realtors want to get out is that it is no more risky to live in Puna now than it was 40 years ago. Local people have always lived in the presence of a live volcano. Property valuations bounce back up over time. For example, some of our most expensive real estate is in the Kapoho area where a vent opened up in 1960. There is no danger of destruction in 99 percent of this huge Puna area.
“A false impression that Pahoa will soon be looking like Pompeii has to be refuted so people can start buying and selling again and get on with their lives. It’s more likely that due to impending isolation caused by the flow, Pahoa might actually take on the appeal of a destination such as Hana or Hanalei.”
Savio Realty, based in Honolulu, established branch offices in Hilo and Pahoa in 1991 and 2012, respectively. Dana Kenny moved to the Big Island from Oahu in 1990 to open the offices and serve as Principal Broker. He notes that company President Peter Savio was born
in Hilo and has a special affinity for the area. “Like Peter, I love this community,” Kenny said. “I live on the outskirts of Hilo, and it is one of the few places that still has that old Hawaii flavor and small town atmosphere. Although Hilo and Puna have experienced substantial growth in recent years, our vast open space has made it possible to absorb new development and continue to retain a rural lifestyle.”
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