9/1/2018 Kona Real Estate Market Update

The other night we had an amazing sunset at my house. Why SO amazing? As you can imagine we’re pretty sunset snobby here in Hawai’i and this one was just beaming extra vibrant colors int he sky and peaceful. Listen to clip and you’ll hear the evening ritual of the birds settling into the lychee and avocado trees on each side of my house. If you happen to know the book Shoals of Time the sunset skies remind of the front cover of that book that I read in Hawaiian history class in 7th grade.shoals of time

So after a few months of that volcanic activity we have clear skies again…we didn’t know when we would see clear skies again! In one word it was pretty BAD. Hence I noticed I haven’t reported on the realty market since June. There is a rebound and obvious confidence but we can never turn our back as we respect and live our lives day to day.

From he Griggs Report:

The latest data from Hawaii Information Service for North Kona residential shows the Active Listing count down some from two weeks ago while Pending Sales are unchanged now for a month and a half. There is good reason for optimism  with our new clear skies and the  word that our featured attraction, Hawaii Volcano National Park, will reopen this month.

The price range data shows a decline in year over year sales in the $500,000 to $700,000.     This is quite a surprise because that price range had been very strong.  It had consistently been showing great sales year over year. The decline is likely due to the slower sales over the past three months due to the eruption.

The Hawaii Island  data shows increase in inventory and decline in Pending Sales. April 30th report showed 977 listings and 481 pending sales. This report shows 1004 listings and 429 pending sales. Pending Ratio for Hawaii Island has is stable since last report.

Overall the distressed property inventory on the market is showing a slight decline for a change. It will be interesting to follow this going forward to see if it one time phenomena or a change in trend.

Condo stats are stronger than Residential.  Pending sales and Pending Ratio are up from a year ago. Condo inventory continues to decline. The Median Price is at Recovery high of $310,000.

Land stats show a welcome surprise. Pending Sales shot up to 31 in this report. Land prices have been off slightly from the previous year for some time. It could be that land inventory at current prices is coming back in favor due to the high prices of homes.

Should you like a copy of the Griggs report email me at renee@hawaiibeachgolf.com. Page 6 of the Griggs report shows the Pending Ratio Summary page.  It offers a quick glance of the Pending Ratio trend for North Kona Residential,  Condo, Land and Hawaii Island. The right half of the table shows the various price range ratios. Residential, Condo and Land chart shows an improving trend since June. Residential is actually unchanged since last report.

The Page 7 Kona Residential Price chart since 1972 has been  updated with the new 2017 data. This maintains a data pool of similar homes many of which have resold over the years. The total number of sales that make up the data pool now stands at 7,370 in the 23 subdivisions in the study.  The year/year price change  for this Mid-level housing group for 2017 is $587,100, up from 2016’s  $582,900. This represents a 1% price increase for 2017. This does coincide with the price change data for land,  which is the basis for real estate values.  Land values  on average for 2017 are up +1% from 2016.

As always Mahalo nut to Michael Griggs for allowing me to share his report with my clients and the general public. Until next time! A hui hou.

Renee H. Kraft 808-345-2108 renee@hawaiibeachgolf.com

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