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West Hawaii Real Estate Update: August 2016

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West Hawaii Real Estate Update

August, 2016: Volume 13, Issue 6

Kona houses sales, especially under $1 million, are still climbing. We closed 45 overall and 42 of them were under $1 million. There are currently 153 available which would be great if they were in the ranges the buyers wanted… namely under $600,000.

There are currently only 19 houses listed under $500,000 and 34 for more between $500,000 and $600,000. At 42 sales a month it won’t take us long to run out.

For buyers it means you need to stop waiting. With Interest rates as low as we have ever seen them now is the time to move before prices get beyond your reach.

hula-girl-ivory backNow condos are another story… we have 239 for sale and only sold 22 in June and 24 in July. If you are shopping for a deal this is the category to look into. Our second home buyers are in short supply these days so we have extra condos. There are currently 65 listed under $300,000.

Email or call for more info!

 

 

Notes from Gretchen

It has recently come to the industry’s attention that there are potential issues with non-judicial property foreclosure resales. Resales are being stopped by title insurers who are refusing to insure them.

The reason is a very recent lawsuit claiming that the required process was not verified by a judge as it would be in a judicial foreclosure and is therefore suspect as to how it protected the due process rights of the foreclosed party.

Some title companies excluded the foreclosure from the title insurance which means they have no one to defend them so be sure to check your title policy to make sure you are covered or contact them to find out.

 

Kona House/Condo Sales Listed Under $1 Million

The rapid increase in condo inventory makes this residential graph startling in the first quarter of 2016. It is gradually dropping but is creating great pressure on condo pricing.

 

Economic Update

  • Hawaii state unemployment moved up to 3.5% in July with the loss of some construction jobs statewide but is the same as last year at this time.
  • Kona Village Resort has come to terms with its nine outstanding lawsuits over the damage caused by the tsunami of 2011. The new leaseholder will be Kennedy/Wilson and they plan to reopen the 81.4 acre property in 2019… awesome!
  • The Hapuna Prince Hotel has sold 96 of its 350 guest rooms and its one 8,000 sf Villa to mainland corporation. They intend to develop the former hotel rooms into 5-star resort residences inside the hotel.
  • Waikoloa Resort is getting a movie theater! And not just any kind, the luxury kind! It will have three auditoriums with 85-100 person seating. They will have food and beverage delivery to your seats even… yay! That will be worth the drive!
  • The recent 2016 College Affordability Diagnosis report sighted UH Community Colleges as the most affordable 2-year higher education in the nation… who would have thought!
  • Hawaii County on average spends $51,700 per household each year, the bulk in food, transportation, and housing.

For Sale

 

3 Bedroom / 2 Bath / 976 sqft / Maintenance Fee $486/mo


MLS 298268

Alii Lani, this 3 bedroom turn-key furnished end unit is a standout within one of Kona’s best-loved condominium communities…. and it has a view of Keauhou Bay!

A spacious kitchen with white cabinets, ceramic tile counter tops and an eat-in nook make for easy living, and along with the recently updated wall paint and carpet enhance the ambiance. Enjoy your favorite island dishes from a separate dining area, or choose to take in the ocean breeze while dining out the lanai. Plenty of sunshine and vaulted ceilings create a sense of space in the great room which opens on to the lanai. The great room also has a brand new AC unit.


Kona Pricing

K ona houses listed under $1 million in 2015 sold for an average of $546,000 in the first seven months of last year. There were 239 sales by the end of July 2015.

In 2016 that amount is $569,777 (4% increase) and we have sold 225 houses in the first 7 months.

Kona condos listed under $1 million in 2015 sold for an average of $276,772 in the first 7 months and we sold 234 of them.

In 2016 the average condo price is $300,698 (8% increase) and we have sold 209 so far.

This upward pricing pressure is eroding affordability of the properties when the mortgage, taxes, and association fees are bundled together.

Market Snapshot

Closed in
July, 2016
For Sale in
August, 2016

Kailua-Kona:
45 Homes
24 Condos
6 Land

Sold

Kohala:
21 Homes
17 Condos
7 Land

Kailua-Kona:
272 Homes
239 Condos
208 Land

For Sale

Kohala:
145 Homes
208 Condos
75 Land

Gretchen Osgood
Hawaiian Isle Real Estate, LLC
Realtor(B)
Principal Broker/ Owner
Direct (808) 329-5667

Top 100 Agents in Hawaii – 2013 & 2014
Creative Advertising Award – 2012
Broker of the Year – 2010


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