Moving toward the busy winter season we see the residential inventory displaying the seasonal increase. However, the inventory is far less than what was available a year ago. Current inventory stands at 178. The median price has been stable since the summer. Currently, the median price for residential homes is $620,000.
The price range data at the top of page 2 shows the most active price range is $500,000 to $900,000. This price range represents 52% of all home sales in Kona currently. This number hasn’t changed much since last year’s 49%. There only 9 homes on the market under $500,000.
The Hawaii Island Chart shows the seasonal dip in the Pending Ratio. This declining trend typically reverses in late January as the brisk winter selling season begins.
Overall the distressed property inventory on the market continues a decline at a very slow pace. The Percentage of MLS listings that are either REO or Short Sales island wide is unchanged from last year. It now stands at 10% of all listings on average. In 2012 approximately 40% of the listing inventory was either REO or Short Sales. North Kona and Waimea are actually showing an increase in distressed properties both in the MLS REO & SS data.
Condo Pending Ratio is way up from last year thanks to big decline in inventory and big increase in Pending Sales. The Median Price has increased slightly from last year, +2%. This is a healthy, very sustainable increase. Chart 7-Kona Condo’s is showing decline in Pending Ratio and Median Price in the past two months.
Recent data for Land shows improvement from last year’s numbers, but not to the extent of Res and Condo. Current Pending Ratio Pending Ratio and Median Price trend is down. Median Price is actually showing negative 2%.
Page 6 is the Pending Ratio Summary page. The Summary page 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.
The Page 7 Kona Residential Price chart since 1972 will be updated with the new 2017 data in January.
The Kona vs. West Coast March 2017 with data updated through October showing Kona and San Diego year over year appreciation rates almost mirror each other at +8% and +9%. Because historical data shows San Diego to be as 6 to 12 month leading indicator of Kona price direction we should expect continued strong price appreciation in Kona for 6 to 12 months.
Until the next report due February 1, 2018 enjoy the rest of January!
Renee H. Kraft 808-345-2108 Direct
For a full color pdf copy of the Griggs Report please email firstname.lastname@example.org.
The Griggs Report is published semi-monthly by Michael B. Griggs, PB, GRI