Any effect yet on land prices since latest lava flow?? (sale, homes)

[Fredesch]

I believe insurance companies do not have to issue new policies on homes in Puna. If they don't issue new policies, then getting a mortgage becomes problematic. If you can only sell to folks that can pay cash, house prices will go down.

Being Hawaii, land sales might not be as affected as you think. Someone has owned the undeveloped lots in the subdivisions for over 50 years. They must think it is OK to pay taxes on their future home, year after year and never get around to building it. So why would an owner of an undeveloped lot be bothered by the lava? Might be cool to dig a puka in your yard and have a natural hot tub. If they left the lot undeveloped for 60 years what is a few more years to them? Their taxes might actually go down. So no telling what will happen to land prices, maybe there will be folks looking for bargains that will actually buy that propery someone inherited that they haven't been able to sell.

[Rabrrita]

I believe a key factor will be access. If the lava flow disrupts or otherwise hinder access to an area, and that barrier remains hot (can't be plowed for a road), properties cut off will naturally decrease in value.

You will see this whenever any disaster blocks access to an area. Seller immediate reaction sis to lower the price to sell before the big drop, but as they drop prices, others immediately follow. This cause even more to start dropping further to get sold before the bottom drops out. In a very short time period, a sharp drop will be seen until people get over the initial “sell” – “sell” panic. However, because of the limited access, prices will always remain depressed until access is provided to the area.

Expect to see lowering prices the closer lava comes to an area, but, expect to see a plunge if roads become threatened.

[1freespirit]

More then likely the roads are going to be effected. If the flow continues the path it is now (which more then likely is) there is no way around roads (access in an out) being effected.

There will be an access road maybe not the greatest but there will be access of some sort in/out. Luckily we have insurance on our home - so far.

We were planning to rent our home out as a vacation rental that we fixed up to start this season. Well then the flow happened. So was not promoting the rental - then we noticed people were asking about it and wanting to stay. Surprisingly we are still getting bookings even though we have been upfront with the travelers about the flow and road issues. Seems those that have booked are not to concerned with the possibilty of an alternate road with extended time travel (Ex: CoC road). They seem excited in the possibilty to see and be close to an actual flow in progress and like the thought of being secluded.

I guess there are different strokes for different folks in that aspect.

Yes, home values will plunge but until then we personally will hang tight with our property and wait it out. Makes no sense to jump on the band wagon to try and sell at this point.

So much can happen to this area in the next few years, it's all an unknown now. Maybe it will become like the remote town on Maui called "Hana" but with active lava flows. If travelers do not seem to mind about renting our place maybe there is a market there for those who have left their homes and moved but do not have the option to sell at this point? Turn the area into a vacation land for those types of tourist?

Just tring to make a positive out of a negative situation.

[hotzcatz]

Vacation rentals may be a way for folks to be able to relocate on the other side of the flow and still be able to afford to rent a new place while making mortgage payments on the secluded house. The tourists wouldn't mind the hard to get to part of it since they'd not have to go anywhere at any particular time. The lava is pretty slow so it shouldn't be a danger to the tourists.

[mdand3boys]

Originally Posted by mdand3boys

Been starting to see prices on bare land dropping, with lots in Nanawale already down as low as $3,000 (and a bunch of them for that price). Right now, HPP seems to be keeping prices up, if not slightly increasing, since so many people seem to think HPP is "safe" for a while. Lots of properties overall going on the market lately, too. A couple of weeks ago, a check of Zillow.com for zip code 96778 showed 480 - its now 516. I think it will continue to rise as the lava gets closer and reality sets in for people.

That was 11 days ago. I just checked zillow.com and the number of properties for sale is up to 533.
Since I assume there have been closings or others taken off the market in that time frame, the number is getting rather high, indeed.

Hawaii County HI 96778 Homes For Sale & 96778 Real Estate - Zillow

Open that zillow search and look at the huge cluster of homes for sale in Ainaloa and Hawaiian Beaches/Shores.

[Dreaming of Hawaii]

We are already seeing the impacts here in Discovery Harbour (near South Point). One of the latest sales was to a couple from Puna, and local realtors have been getting lots of inquiries.

[OpenD]

Unfortunately the reports of landlord opportunism and price gouging have started, despite the fact that it is illegal under the Governor's proclamation...

Landlords on Hawaii Island might be ditching their regular tenants in order to make bigger profits from residents seeking safe harbor from the path of the June 27 lava flow.

In a press release issued Tuesday morning, the Department of Commerce and Consumer Affairs said that it had received recent reports from Big Isle landlords and tenants concerning the practice of terminating month-to-month rentals and then upping unit rates, despite the governor declaring an emergency on Sept. 5 specifically banning such behavior.

The ban remains in effect until Gov. Neil Abercrombie leaves office Dec. 1, but his successor could choose to extend it if needed.

Landlords, tenants reminded about emergency rental protections; reports to DCCA question rental cancellations | Hawaii Tribune-Herald

[hawaiian by heart]

Originally Posted by OpenD

Unfortunately the reports of landlord opportunism and price gouging have started, despite the fact that it is illegal under the Governor's proclamation...

Man thats sad and yes shoot me for saying its unhawaiian and aloha. You guys are right things have change on the social level.

[oregonwoodsmoke]

Originally Posted by Rogerluli

......And in the end we're all dead anyway...

I know, but I do so hope to live longer than death by hot lava this December.

[Badlanding]

Spoke to State Farm last week and they are still offering coverage to home buyers in Lava zone 3 or higher. They have never offered coverage to any property in Lava zones 1 and 2. I have friends who live near four corners and in Leilani Estates who have no coverage or have coverage for volcanic activity through Lloyd's which is a tough choice because its expensive to say the least.

Now the rest of the story by State Farm is that property near the edge of the Lava zones are being denied new coverage but that its being decided by the underwriters. This was what I was told last week while I was making sure my coverage was adequate.

All my hopes for those in danger that this to shall pass!