July 2017 Kona Coast Bi Monthly Market Update

JULY 15, 2017 KONA, HAWAI’I

All of the residential stats continue support the fact that this market has legs on it.     Inventory is trending lower, escrow activity remains  stable and median sale prices are up +6% over the previous 12 months in 2015-2016.

The price range data at the top of page 2 really illustrates the strength in the current residential market.    Currently we see only 11 homes on the market price below $500,000.    The flip side of this is the strong showing in the $500,000 to $900,000 price ranges.

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The Hawaii Island  Chart shows this strong market is not limited to N. Kona.     The Island wide Pending Ratio trend continues the upward path it has been on since January 2017.

Overall the distressed property inventory on the market or owned by lenders continues a  decline.   The Percentage of MLS listings that are either REO or Short Sales island wide has declined from an average of 8% of all  MLS listing to only 5%.      In 2012 approximately  40% of the listing inventory was either REO or Short Sales.   The Island wide REO   count for the four lenders followed  shows a decline of 38 REO properties from a year ago.    Puna still has the highest number, but has shown the greatest decline.

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 Condo data is showing some impressive data with Inventory down (-33%) from last year and  Pending Sales up +40%.      The 12 month sales numbers are also strong at 417 compared to only 339 last year,  (price cap used is $1.5)

Recent data for Land is encouraging as well.     Median Sale Price is up more than the Residential and Condo prices at +11% over the previous 12 months.

Page 6 is the Pending Ratio Summary page.    It offers a quick glance of the Pending Ratio trend for N. Kona Res.,  Condo, Land and  Hawaii Island.    The right half of the table shows the various price range ratios.    The Pending Ratios are still  showing significant year over year gains.     It seems that the North Kona and Island wide data is continue to show a strong market that we have not seen since the recover began.     This suggest that with 2017 we have entered a new phase of the market cycle often referred to as the growth phase.

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The Page 7 Kona Residential Price chart since 1972 has been  updated with the new 2016 data.  

The Kona vs. West Coast March 2017 data shows  San Diego year over year appreciation gains at plus 5.6% exactly the same as  Kona’s  year over change.   Given the fact that San Diego is a  leading indicator for what happens in the Kona market this suggests we will see continued appreciation in the +4% to +7% range for the remainder of this year.    The Case Shiller Home Price index data lags behind real time by about 2 month hence the data in the charts is only up through April.Kona Coast Market Update.

As always Mahalo nut to Realtor Michael Griggs of the Clark Realty Corporation Kailua-Kona office for sharing and allowing colleagues to share with the public.

For a full pdf copy of this report email renee@HawaiiBeachGolf.com or call 808-345-2108.

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