HAWAI'I LIFEKona Real Estate Market and Distressed Property Update (June 30, 2012)
The current Kona real estate market data continues to indicate strong activity in the residential market. The Pending Sales ratio is up nicely from a year ago due to an increase in pending residential sales, and a decrease in available inventory.
Kona Market at a Glance
The Kona real estate market inventory has taken a surprising drop in the past month. The current rate of sales per month stands at 32 units, and the current North Kona residential inventory supply stands at 6.75 months. A 6 month supply is considered a stable market by underwriting and appraisal standards.
Residential homes in the under $400,000 price range are at their lowest level since 2009. From June 30, 2010 to June 30, 2011, the median price for homes sold under $400,000 was $288,000. Currently, that same median sales price stands at $315,000 indicating a 9% increase in that particular market segment.
Condominium prices have seen an increase in the past 6 months. However, data indicates that while number of units sold is increasing along with prices, a weakening of prices might still be in the cards. The median price for land has increased minimally over the past year with total sales volume for vacant land remaining flat.
Distressed Properties Inventory in Slow Decline
The Kona real estate market continues to show an overall decline in distressed active listings. However, the Waikoloa market is showing an increasing trend, and still has the highest percentage of distressed properties of the major island market areas.
Of the total number of bank owned properties, REO’s, a decline can be seen in all Big Island real estate markets with the exception of Puna, South Hilo, South Kona, and Kau which have all seen a slight increase in the past month.
While the overall Kona real estate market inventory remains low in the under $400,000 price range, there are some great deals to be found in the $500,000 to $700,000 price range.
A hui hou!
Todd W. Barrett, Realtor(S), ABR
Direct: 808.937.1629
Email: Todd@HawaiiLife.com
*Data republished with the courtesy and approval of the Griggs Report.
Great article Todd! Very Interesting that North Kona Market has just above a 6 month inventory of Residential Real Estate. As inventory continues to drop, soon we will BELOW a 6 month inventory, and will shift from a buyer’s market to a seller’s market, as prices start to edge up! Thank you for blogging about this . . .
The data certainly shows the direction in which the Kona real estate market is moving at the moment Karen. Once prices begin to see a sustained increase, we’ll know we’re in a Seller’s market for sure!
Great info! Thanks Todd!
Thanks Margaret! Please continue to follow my bi-monthly updates of the Kona real estate market data.
Todd, usually I’m not a fan of “median price” statistics because when they are applied to the entire Big Island we have such a diversity of property prices the median become nearly meaningless. However, your focus on a median price within specific price parameters is really focused and tells a clear story about what’s going on in the under $400k range in Kona. Well done!
Aloha Katie, I couldn’t agree with you more concerning “median price” statistics, especially given not only the diversity of property prices, but diversity among property types as well. The under $400K price range in Kona seems to be a good gauge of the general consensus of the direction of the residential market; up and improving!