To receive our monthly newsletter, please Click Here to enter your mailing address.
View our Archived Articles Here
“Gretchen, thanks for all of your help! Efficiency and attention to detail are so often absent, it is a joy to work with you, my dear.” Edy Campbell (read more)
West Hawaii Real Estate Update
November, 2011: Volume 8, Issue 11
Kona saw its sales stay level, its inventory inch up and its pendings sales fall in October… not what we were hoping for but none of it was drastic. Hopefully it was just the financial crisis in Europe that kept buyers on the proverbial fence.
What’s for sale? Out of the 290 houses on the market in Kona, 63 of them are listed under $400,000 or 22% of the market. In that same range there are 57 with pending contracts or 38% and out of the 36 house sales in October they made up a whopping 50% with 18! That shows you that even though there are a lot of houses for sale there is a very limited range that are selling.
In condos under $400,000 there are 135 out of the 212 available or 63%. In pending sales, 63 out of the 65 are under that amount… and all 19 sales last month! Truth be told 9 of the 19 sales were under $200,000!
Paul Brewbaker’s article that I sent earlier this month is right on in saying that Kona is a great buy at these prices and that anyone that doesn’t buy now will be kicking themselves come 2018 when the market returns to its previous highs.
To buy, email me today!
Luxury Real Estate
Kona sales this month were strong, with 6 overall and last month’s were very good also with 10… and that got me thinking, where do we stand year-to-date?
Talk about déjà vu! We have exactly the same amount of luxury sales at the end of this October as we did last year! And if that weren’t enough, the median and average prices were almost identical as well. The median inched up $100,000 to $2.6 million and the average was up roughly the same to $3.6 million. The highest sale was up over $2 million to $16.9 million, which is very good news.
The surprising shift was the average days on the market were slightly higher at 216 vs. 176 last October.
Another interesting piece is that last year 58 of the sales were all cash or 86% and this year only 55 sales are cash… or 82% so this might be an early indicator that the market is shifting to slightly less conservative buyers.
This is all great news for luxury buyers, giving them confidence to buy since this segment is showing strength in pricing and consistency in volume, which is rare these days. Another piece of good news is that it is following the international trend of luxury real estate rebounding faster than other areas of the real estate market.
Do you dream of having a home to escape to in Hawaii… the land of perpetual warm weather and sunny skies? If so, give me a call to discuss your dream and purchase your legacy property.
Distressed Market Update
Foreclosures and short sales in the last few months have switched positions with short sales taking the lead for market share. With the new Hawaii law restricting most non-judicial foreclosures short sales have once again become the better alternative for banks, and often owners, in finding a solution for a property that is distressed.
At the end of October we had 69 short sale properties for sale in Kona… another 60 with pending contracts and 5 sales. In Kohala we had 49 for sale, 39 with pending contracts and 3 sales.
Stack that up against foreclosures… in Kona there were 33 for sale, 26 pending, and 17 sales. Kohala had 21 for sale, 13 pending, and 8 sales. Yes, they still do close more per month since that process is much more streamlined but I think that will begin to shift as well.
I’m an expert in working with distressed owners that hold mortgages with Bank of America and Wells Fargo so email me TODAY if you need help figuring out what the next step is!
Notes From Gretchen
There is hope! The new HARP II program allows you to refinance even if your property isn’t worth what you owe! There is no appraisal required… but there are several other rules:
The last one will require you to go to either of these websites to check:
Want to Save BIG Bucks?
After having two properties I oversee flood in the last few months I set out on a mission to never have to deal with this again… and found the solution for 90% of the time!
It is so simple it is almost silly… the water supply lines and valves to toilets and sinks are the #1 reason for floods. The old style has rubber seals that degrade with time (and salt water), the new ones have silicone that holds up much better. The cost installed? $50 per fitting… typical bathroom $150… wow! Do this every 5 years and you are practically guaranteed not to flood.
If your property is 5-years old or more, call PSI plumbing TODAY!
Gretchen L. Lambeth
Broker of the Year – 2010
75-170 Hualalai Road, D-115