The current Kona real estate market conditions are very different from a year ago. The most obvious and notable feature is the steadily declining inventory. As well, the data continues to indicate strong activity in the residential sales end of the market.
Kona Market at a Glance
The North Kona real estate market inventory for single family homes and condominiums are down 15%, and 24% respectively. Based upon the recent monthly sales rate, there is around 6 months of residential supply. For homes that are priced at $400,000 or less, there is less than 2 months of supply. These figures are consistent with stable market prices by underwriting and appraisal standards.
The pending sales ratio is up nicely compared to a year ago due to an increase in current pending sales, and a decrease in “Active” listings. At this time last year 82% of the pending sales were in the $500,000 or less range. Currently, that percentage is 75%, as the upper ranges are showing more sales activity.
Condominium inventory has shrunk even more than residential over the past year. The strong market demand is illustrated by the continued climb in the pending sales ratio, which seems to be causing a price increase. However, the land market remains weak with few pending sales due to the abundant supply of residential properties selling, in some cases, well below replacement cost.
Distressed Properties Seen Leveling Off
The Kona real estate market has had the sharpest overall decline in distressed active listings. However, the greatest decline recently is in the Waimea real estate market, which is now at Hilo percentage levels.
Hilo has remained the least effected throughout the downturn with the least amount of distressed properties by percentage of listings. Both the Puna and Kona real estate markets have leveled off in percentage as a total of current listings. The greatest declines island-wide for distressed properties are occurring in the Waimea, Puna, and South Hilo markets.
Foreclosure filings are still being recorded for the entire Big Island, and the North Kona District in particular, at a fairly high rate.
A hui hou!
Todd W. Barrett, Realtor(S), ABR