Something is going on in West Marina Hawaii Kai.
The Honolulu Board of Realtors recently released April 2017’s Local Market Update. During April 2017, the number of condominium sales decreased 22.2 percent from April 2016 in the West Marina neighborhood. The median price for a West Marina condominium rose by 6.2 percent to $720,000 from the same time last year.
According to the Days on Market indicator, West Marina condominium sales closed at a faster pace compared to a year ago with condominiums on the market for 11 days, down from 55 days.
What’s driving sales in West Marina? Lalea, a condominium complex in West Marina, seems to be a desirable place for many Buyers. Pulling data from the Multiple Listing Service (MLS) system, the 1-bedroom units at Lalea have been appreciating in price. In 2016, the median price for a 1-bedroom unit at Lalea was $461,000. Roughly a year later, the median price is $499,000. In addition, there is currently a 1-bedroom unit listed for $510,000. This unit is currently in escrow.
There are many factors to why Buyers are attractive to Lalea. Unlike other condominiums in metro Honolulu, Lalea is a townhouse complex. Townhomes, unlike high rise condominiums, tend to have a more “homey” feel. Second, the monthly maintenance fee at Lalea is less than $300/month. Third, the 1-bedroom units at Lalea are over 700 living sq ft.
Lalea is just one example. Condominium sales in the Hawaii Kai region were strong in April 2017. Overall, the median price for a Hawaii Kai condominium rose by 16 percent to $705,000 from the same time last year.
Living in Lalea can be a great investment. At a purchase price of $499,000, with 20 percent down, on a 30 year conventional loan at 3.8 percent rate, you could possibly own a 1-bedroom unit at Lalea for $2,333/month.
Is that a good deal? According to the MLS, the median 1-bedroom rental price in West Marina is $2,300/month. In this example, it's probably best to own than rent. Most importantly, don't forget to speak with your financial advisor and a mortgage lender to see if buying is the best option for you.
If you are interested in learning more about West Marina, please don’t hesitate to contact me.