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West Hawaii Real Estate Update
July, 2014: Volume 11, Issue 7
Kona sales overall held their ground in June with 86 total closings, but again land sales are up about 10+ each of the last two months obscuring the decline in house and condo sales. Houses picked back up to 34 closings, condos were off of their highs with only 29 sales… and land closed 23 after closing 22 last month… wowza!
To give you an idea of why this has me concerned, in 2013 in June we closed 61 houses, 39 condos, and 12 pieces of land. So we were very short of last year… the question is why. I think the rapid price appreciation has cooled some buyers’ interests, I think the fluctuating interest rates along with tougher qualifying has cooled others, and the overall tone of world politics is distracting folks.
Cash sales are still running very high and Kohala seems to be holding its own with similar closings as last year so I don’t think this is a trend yet but it is something.
Notes From Gretchen
You might have noticed that my name has officially changed… it is now Gretchen Osgood. I finally had time to file all the paperwork that goes with it!In June it was announced we made the Pacific Business News Top 50 real estate company list again with our little office… we were 45th in 2013 in sales dollars in the state… way to go team!I’m headed out to Atlanta for a one week trip to see my family and attend a National Association of Realtors Brokers meeting at the beginning of the month… aloha!
My Soapbox Forum
A few months ago I was musing about what our market would look like if the developers chose not to build during this upswing. The last upswing they built roughly 800 houses/condos to add to our inventory, and it got our buyers excited about the possibilities of owning in Hawaii or moving up to a better property. I’m unsure how our market would react to not getting that catalyst this time. Well we are about to find out… maybe.
Evidently since September 2013, the head ranger at Kaloko National Park has requested the state water department remove the Keauhou Aquifer from the control of Hawaii County and give it to the Federal government. Well that is a pretty substantial request… they say it has to do with the science of how much water there is to go around to keep their fish ponds healthy… the other side of the argument says the aquifer is only being used to roughly 35% of its capacity so why all the fuss? The decision will be made in November by an appointed panel.
Hawaii County has said they will stop issuing water permits if this happens… on Maui when it did, it took three years for the first permit to be issued again… wow! Imagine being a developer right now… who would want to take the chance and build the infrastructure to only be told you couldn’t get a water meter… crazy!
Kona House Inventory by Price Range
The graph shows the low end has almost no inventory but the over $400,000 brackets each have a fairly equal amount, roughly 15-20 each… so some selection.
Out on the Town
This month I thought I would share with you my new home… well at least the view from it! Randy wanted to buy us a place that we could call ‘ours’ and so he picked out a wonderful 3 bedroom, 3 bath home up in Sunset on Kilohana Street. There isn’t enough room here to share the whole house with you but here is the view… wow! We are moving in this weekend… he sure has great taste!
Hawaiian Isle Real Estate, LLCRealtor(B)Principal Broker/ Owner
Direct (808) 329-5667