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“My life had been so busy and stressful, but Gretchen took care of every detail of preparing and selling my condo. I had an offer the very first day it was listed, and escrow closed in less than 20 days. If you are looking for someone who can get the job done and is a pleasure to work with, I definitely recommend Gretchen.”
Read more great testimonials on my website!
West Hawaii Real Estate Update
March, 2016: Volume 13, Issue 2
Kona markets inventory overall in houses and condos has increased almost 29% from last February. You would think that would mean less sales are happening but that isn’t the case.
The Kona market has reached a price point that matches 2004 and a lot of sellers who have been waiting to sell are putting their properties on the market… all at the same time.
Now let’s look at the under $1 million and see what its inventory increase looks like, hmm, exactly the same as the overall market’s increase, 29%. That is almost 100 properties more than last February.
Pending sales for January and February are identical to last year (see graph) and sales, though off in January and still a little low in February, haven’t gone off the rails. This means that our winter buyers are here and buying. It will take some time to absorb this inventory so for a while buyers will have more to choose from and possibly better prices.
Notes from Gretchen
Kona’s abundant inventory has led to some interesting conversations this past month. But contrary to some opinions, the market isn’t ‘falling’… it just has too much inventory from too many sellers wanting to sell at the same time. The sales are still showing strength, although on the lighter side after this past summer’s hurricane parade and Dengue Fever outbreak. Pendings are holding steady.
As an example, 3 of my well-maintained properties received accepted offers the first 2 weeks on the market last month… so pricing and leading with your best foot forward still pays off here.
Kona Look at Houses & Condos Listed Under $1 Million
A 100-property increase in inventory gives buyers more options than last year and potentially better pricing too.
A statewide ban on new cesspool construction was signed into law on March 18th. Going forward none will be approved even in rural areas like the Big Island.
West Hawaii Today credited Lorraine Inouye with saying the difference between a $2,000-$3,000 cesspool and a $20,000-$30,000 septic system will be a hardship for homeowners in low income areas.
Currently there are 50,000 cesspools on the Big Island and to convert them all to septic is estimated to be $1.5 billion. However, no current conversion is required but a tax credit for doing so is available.
Hawaiian Isle Real Estate, LLC
Principal Broker/ Owner
Direct (808) 329-5667
Top 100 Agents in Hawaii – 2013 & 2014