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Monthly Newsletter Archive: September, 2010

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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…

  • Now this will “knock your socks off”… the Department of Business, Economic Development and Tourism projections for Hawaii County is a 51% increase in population over the next 25 years… wow! That’s almost 90,000 more people if you use the 2008 census. Where are we going to put all of them if we don’t build houses and roads? In supply and demand economics, this means prices are forced up on real estate when there is insufficient housing for the masses…
  • The Council of Revenues (smart guys that project taxes for the state), predicted that Hawaii’s economy will grow 10% the next fiscal year (2011/2012) and 6% each of the next five years. This fiscal year is projected at 6% increase… nice!!!
  • Delta will now code share with Hawaiian Air… no more having to buy two tickets! You can book all the way to Kona… nice!

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…

  • Foreclosures in the state dropped year-over-year for July, down 6% to 930, the lowest since last November. The high was 1,534 in December… great news!
  • On its heels was the report that hotel tax revenue was up a whopping 25% the first two months of the state’s fiscal year… helped by a 1% increase in the tax rate and a rebound in tourism.
  • That rebound in tourism was 9% more year-over-year and the 8th consecutive month more visitors came to Hawaii than in ‘09. Spending jumped 23% in July… way to go malihini (visitors)!
  • Hotel occupancy in June averaged 74% up 9% year-over-year… overall for ‘10 occupancy is up 4.8%.

Market Snapshot

Closed in
August, 2010

For Sale in
September, 2010

27 Homes
26 Condos
4   Land


17 Homes
14 Condos
1   Land

328 Homes
267 Condos
244 Land

For Sale

176 Homes
234 Condos
130 Land

Gretchen L. Lambeth
Hawaiian Isle Real Estate, LLC
Principal Broker/ Owner

Office (808) 329-5667
Cell (808) 987-1012


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