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West Hawaii Real Estate Update: July 2015

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Testimonial

“You not only sold our condo in no time at all but saved us from having any due diligence re-negotiations by using the prelisting home inspection so the buyers knew everything about the condo. The process was as painless as could be. You’re the WOMAN!”
J&E Knister

Read more great testimonials on my website!

West Hawaii Real Estate Update

July, 2015: Volume 12, Issue 7

The sales for Kona in June dropped from May’s 93 to 84 total sales… 34 house, 36 condos, and 14 lots. There are 94 houses with pending sales, 63 condos, and 22 pieces of land. I recite these statistics to illustrate a larger point so bear with me for one more… there are 250 houses for sale, 181 condos, and 149 lots.

The startling part of this information is the percentage of the property available and pending under $1 million. There are only 142 houses listed under $1M (56%) so that means there are 108 houses listed over that in Kona currently. If your budget is say half a million you only have 74 (30%) to chose from.

hula-girl-ivory backHowever, in sales and pending the percentages are reversed… 94% of the sales are under a million and 84% of the pending sales are also. And if we sell between 30-40 houses a month that means we have roughly a 3-4 month supply in the under a million range.

Notes From Gretchen

It has been an interesting year in real estate here in Kona. Our industry has added over 100 rookie agents to our area in just the last 6 months, leaving those of us that have been doing this for years, wondering what level of expertise could they all have.

The National Association of Realtors just published an extensive, and scathing, report on how new and part time agents are hurting our industry with a lack of experience and professionalism.

Make sure when you hire a REALTOR to confirm their years of experience and how much real estate they actually sell.

 

Economic News

  • Hawaii Tourism Authority and the Department of Transportation are in discussions to prescreen some international travelers at their origin airports to streamline customs in Hawaii, and more specifically Kona. This could reopen international travel to our airport and be great for our economy!
  • Oahu’s hotel occupancy in May topped all records at 84.2%, but a 1,000 room hotel renovation did lower the available inventory making this record possible, but still nice to see!
  • The lava was flowing in April and May at the Hawaii Volcanoes National Park! They recorded large increases in their visitor counts both months with 4,679 average per day and 5,466 average, a 37% increase over last May. The lava lake is less visible now so those numbers have recently receded.
  • Hawaii Tourism authority is reporting that there has been a 40% increase in direct airfare seats to Kona which contributed to the 33% increase in tourism. One-day trips to see the volcano were up 12%.

Kona House Sales Listed Under $1 Million

 

There have been 86 fee simple house sales this year under $500,000, down slightly from last years 97 at this midway point. Currently there are 42 available.

Just Listed!

Immaculate condition in Kahakai Place!

Set just a short stroll from the shoreline, this impeccably maintained residence invites you to slow down and embrace island living.

Kahakai Place is a gated enclave of similarly styled beach homes that lies one block from Alii Drive. Association dues are only $110 per month. Enjoy a peaceful morning drinking Kona coffee on the tiled front porch or join scores of residents who walk, jog and bike along Alii Drive, taking in the sights and sounds of the ocean.

This little-known neighborhood is the creation of a developer who is accustomed to building high-end resort homes. The mark of quality is evident here as well. Recent improvements include fresh exterior and interior paint, newer laminate flooring in the living room and 4-year new air conditioning system.

3 BD/ 2.5 BA • 1,314 SF of living area • 5,500 SF land area
Offered at $475,000
MLS 286474
For more information or to arrange a showing, give me a call or email me.

 

1031 Exchanges

If  you owned rental property or raw land for years then you should consider using a 1031 exchange when you sell to maximize your income. When you sell you can exchange for anything that is defined as real property… condo, house, land, and commercial, all are ‘like kind.’

The reasons for using one typically center around not wanting to pay the taxes on the gain and depreciation recapture at the time of sale. This allows you to put it off till a later date or as estate planning since when you die with a 1031 in place the taxes are waived… great for your heirs! Check it out www.orexco1031.com/Benefits.aspx.

Market Snapshot

Closed in
June, 2015
For Sale in
July, 2015

Kailua-Kona:
34 Homes
36 Condos
14 Land

Sold

Kohala:
24 Homes
16 Condos
4 Land

Kailua-Kona:
250 Homes
181 Condos
149 Land

For Sale

Kohala:
123 Homes
197 Condos
68 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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