How has volcano eruption affected Big Island real estate market? (if any) (Hilo: for sale, oceanfront)

[rhbj03]

Is it bad taste to talk about Big Island real estate at this time?

I'm wondering if some people might be trying to cut loss?

[Grassyknoll]

It's probably a touchy subject to say the least.
There is a fine line between having a meaningful discussion on the subject and coming off as callous and apithetic. There was a local helicopter pilot that was vilified and fired for making some un-Aloha comments on his Facebook page.
Nerves are raw and residents who make (even seemingly) uncaring comments are rolling the dice imho.

[bgrasser]

I’d say RE investment for that section of the island is off the table.
I recall back when, going to Big Island with family looking for work/vacation,
we toured the destructive behavior of the V, we walked on lava that recently destroyed a road, right then I knew that Hilo and beyond was not for us, back we went to the NW area.

[hotzcatz]

I bought a property once that had lava running across it. Still have it, actually, if you want an acre in Royal Gardens, let me know. The owners had never seen it, the Realtor had never seen it and I've never seen it, but it's just over an acre. We were planning on using it as a place to camp and look at stars, but never have. With this current lava flow, they may rebuild the road that goes across the bottom of Royal Gardens, maybe someday we will be able to get there.

If real estate follows what happened several years ago when Pahoa almost got cut off by lava, there will be properties put up for sale at (dare we say?) fire sale prices. Then, once the lava stops, within three to five months the prices will be back up to where they were before.

Currently in Leilani Estates there's nineteen houses for sale and quite a few parcels of land available. There's one nice house listed for $289K that has a contingency on it so someone is in the process of trying to buy it. From the various maps, it looks like the lava is within 600 feet of it and more than likely the road to that specific house has been blocked by lava flows. Does it fall out of escrow if it's not officially burned up or covered by lava yet? There's another with a contingency on it in the same corner of the subdivision. Doesn't look like this particular one is covered yet but the road is probably blocked. Is not having access enough to have it fall out of escrow?

How much more heartbreaking is it to not only lose a house but lose a house mere days before it would have sold for a significant sum of money? At least, one hopes the folks had moved their things out of the houses before putting them up for sale. They will still have their stuff, although they will no longer have a place to put it.

It's a pity this happened in Leilani, they've had those CCRs which required folks to build nice houses. Had folks been able to build small houses, sometimes those can be picked up and moved although this eruption didn't really give folks much time to prepare.

Even after the lava covers their home, the folks still own that section of lava. When the lava cools off, they could rebuild, somewhat like Kalapana. Personally, I'd like to see a different set of building codes for lava areas. Maybe make the houses either small enough or in sections so they can be moved out when threatened by lava.

[MickeyE]

Originally Posted by hotzcatz

Even after the lava covers their home, the folks still own that section of lava. When the lava cools off, they could rebuild, somewhat like Kalapana. Personally, I'd like to see a different set of building codes for lava areas. Maybe make the houses either small enough or in sections so they can be moved out when threatened by lava.

This would be great if the existing ADU (Accessory Dwelling Unit)requirements could be modified to PDU (Primary Dwelling Unit) for lava areas. There is already HB2451-HD1 for agricultural areas (see https://legiscan.com/HI/text/HB2451/2018 ) that will allow tiny houses for farm workers and farm owners.

from HB2451
(24)Construction of tiny homes for use by farm workers or farmers; provided that a tiny home:
(A)Shall be limited to residential use by:
(i)A farm employee; or
(ii)The owner of a farm that has been engaged in agricultural production for a continuous period of no less than five years;
provided further that the need for labor and a certification that use of the tiny home will conform to the requirements of this paragraph, shall be documented in a notarized affidavit by the farm owner to the commission;
(B)Shall be constructed or placed upon a legal parcel, and shall not require or preclude the construction of a primary residence; provided that construction shall be limited to three tiny homes per parcel;
(C)Shall have a water source and a sewage disposal system that comply with all applicable laws, ordinances, and rules;
(D)That is designed to be mobile and is constructed on a trailer with wheels shall be duly registered with the county in which it is located, and remain in a mobile condition;
(E)Shall be subject to county ordinances or permitting requirements that are directly applicable to residential uses of tiny homes in agricultural districts; and
(F)Within sixty days of cessation of occupancy, shall be disconnected from all utilities, including water sources and sewage disposal systems, and shall be removed from the parcel.
For the purposes of this paragraph:
"Agricultural production" means any of the acts described in paragraphs (1) to (3), except acts conducted for personal consumption.
"Tiny home" means a dwelling unit with less than five hundred square feet of interior living space that is either stationary or mobile."

In case of lava flow heading toward your property, unhook water, sewer and power, hook your home to your truck and tow to a safe area. When safe to return, tow it back to your property. The only things to rebuild would be water catchment tanks and septic tanks and you can use a generator for power until the power company can re-install power. Yes, it would be expensive, but not as expensive as building a new house and having to rent a place to stay until it was built.

Mickey

[Arktikos]

Originally Posted by MickeyE

In case of lava flow heading toward your property, unhook water, sewer and power, hook your home to your truck and tow to a safe area. When safe to return, tow it back to your property.

Sounds good, provided a safe area to park home is available and road to the original property exists . Re grading roads through a lava flow may be a tall task that takes quite awhile.

The one video I saw on Facebook of the guy filming from his roof indicated that a huge river of lava was travelling down the access road to his property. The cost of clearing this mess could be prohibitively expensive.

[Open-D]

Originally Posted by Blind Cleric

Sounds good, provided a safe area to park home is available and road to the original property exists . Re grading roads through a lava flow may be a tall task that takes quite awhile.

The one video I saw on Facebook of the guy filming from his roof indicated that a huge river of lava was travelling down the access road to his property. The cost of clearing this mess could be prohibitively expensive.

Are the subdivision streets the responsibility of the HOA or government?

[Arktikos]

Originally Posted by Open-D

Are the subdivision streets the responsibility of the HOA or government?

They are private roads.

[rhbj03]

I have been wanting an oceanfront lot. I don't really see discussion of property sales at a time like this as "insensitive". A liquid market is good for everyone, some people want to take risk, some don't; it's good to be able to transfer risk to those who wants it.

[Open-D]

Originally Posted by Blind Cleric

They are private roads.

I suspected so, having read about these subdivisions over the years. Odd sort of creatures.

In that they are private roads, will not the responsibility for removing the lava and rebuilding affected sections of road be the financial responsibility of the HOA, and would sufficient reserves or insurance coverage exist to handle the cleanup if and when activity ceases in LE?

Also, how hard does this lava become when cooled? A' A' seems crumbly and less unified, and therefor more easily removed, while the Pahoehoe seems more unified and, therefore, more difficult to remove.

I know that they are using extruded basalt fibers bundled together as a substitute for steel rebar, so it has the potential of being very hard to remove.