Top Menu

West Hawaii Real Estate Update: June 2016

To receive our monthly newsletter, please Click Here to enter your mailing address.

View our Archived Articles Here

header

Testimonial

When it comes time to sell your property, there is no one with more expertise than Gretchen. We followed her advice about property improvements, pricing and inspection and our condo sold in 3 days. And that was in a crowded market! This is our first experience with her on the selling end of real estate and from start to finish, it was smooth sailing!!

Tom and Heather
Read more great testimonials on my website!

West Hawaii Real Estate Update

June, 2016: Volume 13, Issue 4

When looking for real estate trends it is often helpful to look backwards. This time last year in Kona we had 185 condos available for sale, this year we have 267, an increase of 82. Since we only sell roughly 35 a month that leaves us with 7 1/2 months of inventory. Hmmm, since a balanced market is a 6 month supply some ranges have slipped back into a buyer’s market.

In houses in Kona we have 279 available compared to May of last year when we had 240, a difference of 39. Due to a severe dip in January sales our average month of selling is at 36, so if you have 279 to sell and we sell 36 a month, that leaves us with … a 7 1/2 month supply… wow!

But there is basically nothing available under $400K that is habitable. From 400K to 500K there are only 15 options, which is pricing a lot of buyers out of the market with strict debt to income ratios in lending. Email me for details!

hula-girl-ivory back

Notes from Gretchen

The market is all the talk of town, what is it doing and where it is going. Good news is that all of the economic indicators are saying it isn’t going anywhere negative in the next 6-12 months. We have full employment, our contractors are super busy, and we have a strong supply of inventory.

Another strong indicator for us is all cash sales. These are people typically selling their homes on the mainland and buying here to retire, which means they are on strong financial footing, which is always good for Kona. Currently our cash purchases are running 47% of all sales!

 

Kona All Pending Sales Listed Under $1 Million

Pending Sales are a predictor of what is to come, in this case it is a picture of what didn’t happen… this highlights our storm plagued summer that left us high and dry on buyers.

 

Economic Update

  • Good news on the tourism front, Island Air will be making 5 daily flights from Honolulu and Kona, increasing our interisland seat capacity… yeah!
  • Hualalai Kai, an assisted living and skilled nursing facility planned for Hualalai Road, is just past Nani Kailua Drive and on the mauka side of the road, and is expected to cost approximately $70 million. It includes 160-bed long term care with 96 assisted living residences and 35 apartments for staff. It is planned to be up and running by 2018 and is in the final permitting phase… wow, big project in the heart of Kona!
  • New construction permit values dipped for the Big Island April but remodeling increased over last years numbers. Needless to say, the contractors are super busy now and this is an indicator of what their pipeline of upcoming projects looks like, not what is being built today. Watch for this trend to continue.
  • Census Bureau states show 2,412 people more lived in Hawaii County in July 1, 2015 than July 1, 2104, bringing our total to 196,016… wow! I remember when it was 160,000. Annual growth rate of 1.2% or a 7-person per day increase. On average 7 births, 5 deaths, 4 new arrivals—2 domestic and 2 foreign… if we don’t start building we will have no place to put them!

Super Luxury

I‘m fortunate to call the Principal Broker at Hualalai Realty, Rob Kildow, a friend. Having met him on another luxury project many moons ago, he took me under his proverbial wing. After last month’s newsletter he emailed that out at the resort for the super luxury seller/buyers things were busy, so I thought I would check it out for myself… here are the super luxury stats for the year out on the Gold Coast:

2016 to date house sale:

$9.5 million at Hualalai Resort

2016 to date condo sale:

$4.5 million at Kukio Resort

Overall 51 sales year-to-date!

Market Snapshot

Closed in
May, 2016
For Sale in
June, 2016

Kailua-Kona:
42 Homes
35 Condos
5 Land

Sold

Kohala:
21 Homes
22 Condos
6 Land

Kailua-Kona:
279 Homes
267 Condos
198 Land

For Sale

Kohala:
132 Homes
227 Condos
80 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


This newsletter is available via monthly email. Visit my website to subscribe.
Search all available Big Island homes online at http://www.hawaiirealestatedreams.com/