Data continues to indicate strong year over year activity in the Kona real estate. The Pending Sales ratio dipped slightly in the past month due to a decline in the number of escrows and a slight increase in inventory. The year over year improvement for the Pending Ratio is quite significant at 69%.
Kona Market at a Glance
The most notable recent statistic is the Median Sales Price for the North Kona market for homes sold in the past 12 months moving above $370,000 to $373,000. Since October of last year the price had remained steadily in the $365,000 to $369,000 price range.
There are a few good reasons why we may expect to see this upward trend continue:
- Low Inventory – 215 homes “Active” priced below $4 Million
- Pending Ratio over 50 – there is more than one home in escrow for every two “Active” listings
- Year To Date Median Price of $385,000 – indicates upward momentum for the Median Price
As indicated in the Case Shiller Home Price Index through May 2012, the Kona real estate market price trend seems to be very much in step with what is being seen in major Mainland metro area prices.
Recoveries begin from the bottom price level and spread upward over time. All price ranges show substantial improvement from July of 2011.
Distressed Properties Inventory in Slow Decline
The Kona real estate market and Puna market are showing a decline in the distressed property trend. At the same time, Waikoloa and Waimea appear to have an increasing percentage of distressed properties.
The increase seen in Waikoloa and Waimea could simply mean that there are few sellers, outside of lenders, who need to dispose of non-performing mortgages or otherwise distressed properties. However, this is conjecture and the true force behind these trends is likely to show itself in the very near future.
The island-wide count for REO (foreclosure) properties for the major lenders tracked is the same as the last update at only 89 properties. This is dramatically down from the high count of 261 properties in June of 2011.
While the overall Kona real estate market inventory remains extremely 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
*Data republished with the courtesy and approval of the Griggs Report.