Bi-monthly report for the period March 1-15 2016.
– #KONA Residential stats show the Median Price dropped back from last reports $560,000 to $553,500. This still keeps it on an upward trend for the year. It is likely the lack of affordable inventory under $500.000 will continue to move the price higher. Inventory is up to its highest level since 2012. Escrow activity is down. The high active listing count has caused the Residential Pending Ratio to slip below 30. Sales numbers and price stats for the past 12 months are positive. The Mortgage Banker Association is forecasting a strong second quarter. Let’s hope to see that in coming months. For trivia’s sake, it is interesting to note that the current Active Listing Median Price is $799,000, exactly the same as it was a year ago.
– The Page 2 Pie Chart shows under $400,000 sales numbers are down from a year ago as affordable inventory dries up. The dominant sales price range is the $500K to $700K range. The number of Sales has increased 4% since 2015. It’s interesting to see how the over $900,000 price ranges seem to point where supply is distinctly great than demand.
– The Percentage of #MLS listings that are either REO (Foreclosure) or Short Sales island wide is down (-5 %) from this time last year. The declining trend continues. In late 2011 the percentage was near 40%.
– The Island wide REO (Foreclosure) count for the four lenders tracked has leveled off in the past 6 months has also trended downward over the past 12 months. For the year the number has declined a modest (–13) and is unchanged from last report. Puna market area shows the greatest decline.
– The Hawaii Island #Condo year over year data is follow a trend similar to what we currently see in Residential data. Inventory is quite high, up 46% from a year ago. Great shopping conditions for #Buyers. We also see the seasonal increase in Pending Sales since the first of the year. The numbers are not dramatic but should continue to improve as the busy winter market moves forward.
– The Land market year over year stats show a big jump in Pending Sales compared to last year. It seems that the lack of Residential inventory in the more affordable price ranges is driving the increased interest in Land. Land Median Price increase by a sustainable +7% according to the data.
– The Page 7 #Kona Residential Price chart since 1972 has been updated with the new 2015 data. A trend line has been added. The #Average #Residential Price change for 2015 was +4.0%. This price increase is representative of homes in #Kona priced below $700,000. If we included all sales we would see less price increase as those properties in the higher price ranges were flat to moderate decline.
– Pages 8 of the “Kona vs West Coast Inventory and Sale Price Trends,” are the most useful future trend indicators. These Charts maybe very useful tools in forecasting the future Price trends in Kona. The San Diego sale price data and appreciation rate data seem to be a very reliable leading indicator for our Kona price trend. It appears that the Kona price trend lags San Diego by about a year.
Mahalo as always to Micheal Griggs Realtor with Clark Realty Corporation for sharing these accurate comprehensive reports.
Until Next Time…A Hui Hou!