Residential Median Price has been relatively stable since last summer fluctuating in the $572,000 to $580,000 range. Current Median Price is ($580,000). Escrow activity is up 18% from a year ago. The inventory is up also, but almost all of the increase is in the over $700,000 price ranges. The Median Price of the active inventory is $859,000. The increase in escrow activity suggests 2017 is getting off to a good start.
Page 2 Pie Chart illustrates the expansion of sales in the higher price ranges over $700,000. Surprisingly the $500,000 and lower price range continues to show a consistent inventory in the 20 to 30 home range. The increase in sales in the $700,000 to $1.5M price ranges suggest the Median Price will continue to move higher in 2017. My guess would be this time next year we will have a Median Price in the $600,000 to $620,000 price range barring any severe economic shocks.
The island wide Pending Ratio data is showing a seasonal decline as the inventory builds for the winter selling season. East Hawaii continues to show a stronger Pending Ratio than West Hawaii. I is likely that this is driven by affordability.
The Percentage of MLS listings that are either REO or Short Sales island wide continues its gradual decline. The Island wide average has stabilized in recent months at 9%. In 2012 approximately 40% of the listing inventory was either REO or Short Sales.
Like the Residential market, Condo year over year data is showing little major change with the exception of Price. Average and Median Prices are up from 2016. Median Price is showing an impressive 8% increase.
The Land market year over year stats show increased inventory and lower Pending Sales numbers. The most disappointing stat in the Land market is the decline in sales.
Like Condos the Median Price showing a nice gain.
Land Median price is +9% hence the decline in sales numbers.
Page 6 is the Pending Ratio Summary page. At a quick glance it tells you the Pending Ratio trend for N. Kona Res., Condo and Land. Hawaii Island trend for the year is also included. The right half of the table shows the various price range ratios. Overall the residential stats are the mostly encouraging. The $900,000 to $ 1.5M price range show a declining trend since October.
This is likely due to inventory buildup prior the winter market.
Page 7 above the Kona Residential Price chart since 1972 has been updated with the new 2016 data. I was surprised by the 8% increase in average price in this select group of N. Kona subdivisions. However since the 20 subdivision and their 4000 home sites are in more mid to lower price level homes it makes sense.
There is really a short supply in these strong demand subdivisions.
For a complete copy of this bi-monthly market report please sign up for my email list firstname.lastname@example.org or send me a private text message to 808-345-2108. As always Mahalo Nui to Mr. Michael Griggs Realtor Broker with Clark Reaty Corporation Kailua-Kona office for allowing industry colleagues like myself to share these informative reports with my clients and the public. Not only valuable to me but everyone who gets to benefit from his dedication to providing these comprehensive reports. Mahalo Michael!!!
Until Next Time…A hui hou!
Renee H. Kraft Realtor rs 51893
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