With just a couple of months left in the year, we are now in the slower season of real estate home sales for Waikoloa Village. Historically, this is the time of year that slower sales lead to an increase of inventory. So, this will be something to watch for in the next two or three inventory reports.
Just a quick review of what the homes for sale inventory shows; in real estate, a general rule is six months of inventory to sell is a neutral market. If you have over six months inventory—or excess inventory—it is considered a buyers market. So, a seller’s market is when the inventory is under six months.
Inventory is arrived at by looking at sales over the past year to get an average sales number per month and then using that number on existing inventory to see how many months are needed to sell the inventory of homes.
Over the past year in Waikoloa Village, there have been 87 sales with an average sales price of $302,636. Of that total number, 63% of the sales were for short sales or REO’s—a pretty hefty percentage. The average sales price for these distressed sales was $264,603.
Currently, there are 55 homes listed for sale in Waikoloa Village with an average listing price of $402,913. However, there are only 19 short sales or REO’s currently listed for sale. The current percentage of distressed homes for sale is now only 34%—or about half of what the percentage has been for the past year in actual sales.
Comparing current inventory with past sales gives a current inventory of 7.5 months to sell the inventory of homes in Waikoloa Village. Last month, the inventory level stood at 8.1 months with 54 homes on the market, so this is a slight decrease in inventory and time to sell homes in Waikoloa.
I’ll be back next week with a look at October home sales in Waikoloa.
I love the Big Island! Aloha.