ranking real estate

Over the past few years on the Big Island the raw land market has taken quite a hit.

For the 1st half of 2009 raw land transactions have dropped Island wide by 32.08%. We had 664 transactions at this time in 2008 and only 451 in 2009. Median pricing for the Island has dropped 30.23% from 2008 to 2009.

A variety of reasons have contributed to the decline in land transactions and subsequently land values. The obvious is the lack of funding. Lending standards have become extemely tight in the construction and land loan markets. Loan To Value requirements have risen along with Underwriting standards. Along with job losses, the collapse of the stock market, 401K, IRA’s, etc. Most people do not have the savings necessary to fund these sort of purchases.

Residential lending has tightened, but Lender’s are far more willing to invest in an existing home then to contribute to adding more inventory to the market.

This all leads back to the title of this Post “Raw Land has the potential for value on the Big Island”. With the scarcity of money in the market those with cash will be in dominating positions to move on “raw land”. With an ever shrinking pool of Buyer’s and an increasing need for Seller’s to liquidate non-income generating properties there will continue to be the potential for “value” purchases in the market.

There is a lot of inventory on the market at this time. Not all properties are the same, but with good research and a lot of data, there are opportunities

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