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West Hawaii Real Estate Update: April, 2015

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Testimonial

“It is no wonder that Gretchen has been ranked as one of the best Realtors in Kona and in the State of Hawaii. We found out firsthand how her full service business and personal attention to her clients can make the onerous task of buying a new home less stressful. And she continues to assist us long-range in questions we have and resources we need. Her services and attention to us as clients did not end with the closing of the house. Thank you for letting us be your clients!” The Padgetts

Read more great testimonials on my website!

West Hawaii Real Estate Update

April, 2015: Volume 12, Issue 4

This month Kona sales for the first quarter surpassed 2014, good news! However, as mentioned in other newsletters, there is a huge uptick in land sales helping us achieve this milestone.

To illustrate just how much impact this is having on existing home sales, let’s look at the $700,000 to $900,000 price range. This was hardest hit in Q1 since this is the range that buying a lot and building becomes very appealing to buyers. The average month’s supply of inventory jumped from 4.8 to 10.5 in the $700-799,999 range and for $800,000 to $899,999, it more than doubled to 6.8 months. Taking both ranges from a seller’s market to a buyer’s market almost overnight.

Even the $600,000 range got hit with enough increase in inventory to push it to 6.5 months’ supply, even though sales were higher than Q4 of 2014, a result of too many sellers entering the market at the same time.

Call or email me to discuss the market!

Notes From Gretchen

Right after last month’s column discussing how many new people are arriving on the island these days, West Hawaii Today did an article titled “More flew here than grew here in the past four years”… how appropriate!

Between 2010-2014, the island’s population grew 4% for a total of 194,190. That is 9,111 new residents with a birth/death increase of 3,723, international migration of 3,087, and domestic migration of 2,163.

We led the state in growth rate last year with a 1.5% increase from 2013-2014.

Economic News

  • Hawaii Volcanoes National Park tallied both the highest visitor turnout and related spending in the state, with 1.7 million guests in 2014 and $136.8 million spent at the park.
  • Well someone must have hear my request last month! Air seats to Hawaii from the mainland are expected to grow 13.3% in the second quarter. West Coast cities lead the way with Seattle rising 24.2% San Francisco 28.6%, and San Jose 23.6%.
  • One of those companies is Virgin America that will begin daily service to Honolulu from San Francisco on November 2nd.
  • Hawaii Island tourism was up for February as compared to last year by 1.7% with a total of 122,491 visitors… that’s a lot of people!
  • United Health Foundation’s 2013 America Health Rankings put Hawaii at #1…yeah!
  • Hawaii County construction and extraction industry has an anticipated growth rate of 29.7% from 2010-2020… wow!

Kona Residential Sales Listed Under $1 Million

Overall sales are holding relatively steady, however, condo sales are outpacing houses because of substantial price increases the last few years in both.

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Water Rates are Rising!

A West Hawaii Today article in March outlined multiple year price increases for the water department. The proposal is before the Water Board to vote on in June and they will be effective in July. The meeting date is May 26th in Kona.

Shocking in its entirety, it is designed to take some of the sting out of it. A 3% increase for this year, a 4% increase for next year and then 5% for the three years after that. At the end of five years they will have raised the rates a combined… 22%!

This is on top of the rising surcharge for electric. Stay tuned to see what the water board decides!

Out on the Town

We had so much fun! We are on the top deck of the Body Glove boat headed for Kealakekua Bay in South Kona on the dinner cruise. Fabulous wait staff, historian and boat captain… and too top it off the drinks and food were great too!

Make sure to put this on your must see list for the next time you are in Kona. I’ve been here 25 years and have never done one of these types of outings and boy, have I been missing out!

Here is the link to book yours today!www.bodyglovehawaii.com/

Market Snapshot

Closed in
February 2015

For Sale in
March, 2015

Kailua-Kona:
30 Homes
32 Condos
16 Land

Sold

Kohala:
16 Homes
17 Condos
6 Land

Kailua-Kona:
240 Homes
181 Condos
166 Land

For Sale

Kohala:
145 Homes
199 Condos
73 Land

Gretchen Osgood

Hawaiian Isle Real Estate, LLC
Realtor(B)
Principal Broker/ Owner
Direct (808) 329-5667
#1 in Kona Transactions – 2013
#16 in State of Hawaii – 2013
Creative Advertising Award – 2012
Broker of the Year – 2010

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