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“ Gretchen, you have been a godsend to us. I don’t know how we would have gotten through what we have without you. You have been so helpful, patient and kind to us. Thank you so very much! ” Distressed Seller (read more)
West Hawaii Real Estate Update
September, 2010: Volume 7, Issue 9
The really good news for Kona is that sales thru August have now surpassed all of ‘09’s… yippie! Year-to-date sales of houses are up 50%; condo are up 107%; and land saw a 94% increase. Overall the year-over-year increase is a whopping 42%! (See Graph)
Should you think this is a passing trend, here are the other strong indicators that we should hold our course for the rest of the year:
Inventories are down, houses and condos combined fell below 600 this month for the first time since ‘04. That is 130 less than September ’09 or a 19% decrease.(See Graph)
Pending sales are up 43% over September ‘09 and at the 4th highest level this year. (See Graph)
Sales increased month-over-month from the dip they took in July to rise to 57 in August and are up 22% from August ‘09. Almost evenly split between houses and condos with 4 land sales thrown in. (See Graph)
In Kohala the inventory is exactly the same at 540, the pendings are the same at 104, but sales were down slightly to 32. I would say this is a pretty stable market at this time… way to go Kohala!
Luxury Real Estate
In Kona our luxury sales in 2010 through August are way up… 57 compared to only 27 in ‘09… up over 100%! Kohala saw 32 compared to only 26 in ‘09 a respectable 29% increase.
The national market for luxury real estate is proving to be one of the strongest sectors of the market and the even better news is that luxury sales are often a leading indicator of a recovering real estate market… yeah!
The July national sales results show luxury sales increased from ‘09 in every region in the US representing a 6% overall national increase. The highest was the West with 7.8%. This is better than any other price sector, all of which saw losses in market share (except luxury) in July. Luxury is outperforming them all… wow!
Although luxury is up overall in Kona and Kohala, it is in spite of our sluggish August sales. Only two sales in Kona and one in Kohala, each area selling just 1% of their markets. In strong times this should be around 4%.
But not to worry, both areas seem to have recovered some with increases in pending sales to 8 and 9 respectively so look for better sales in September.
Inventory in Kona stayed steady but Kohala took a drop, losing 13 properties to 135, nice trend!
To discuss acquiring that long awaited luxury property, call or email me today!
As Seen In The News…
Notes From Gretchen
The market and economy in West Hawaii are improving, inch-by-inch, but slow is fine as long as we are moving up!
The only thing that gets worse with good economic news is interest rates and the recent super low rates (under 4%) are already slowly moving up on the good news.
A low interest rate gives all buyers the opportunity to have a lower monthly payment or possibly to qualify when at a higher rate buying would be out of their reach.
Don’t let this terrific opportunity pass you by! It is rare to find interest rates in the 4% range and house prices at the bottom… both at the same time! It is the perfect storm for buyers. Call me today to get stated on finding your new home!
And More News…
Gretchen L. Lambeth
Hawaiian Isle Real Estate, LLC
Office (808) 329-5667
#1 Residential Resale Transactions from Keauhou to Hawi in 2007 & 2008!
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