The latest data on the North Kona Residential market indicates inventory increasing very modestly and median price unchanged over the past 2 months. There has been an increase of active listings in the under $400,000 price range over the same period. In early summer that inventory was down to the low 20s and now stands at 32. This is likely the result of an increase in foreclosure filing that we saw early in the year. In the price ranges from $400,000 to $700,000, the Pending Ratio indicates strong demand versus supply.
The running year over year appreciation rate has dropped back to +11% from +14% in the early summer.
For Hawaii Island, sales are up +11.% compared to the previous 12 months. The Median Price is up island-wide 19% from $247,000 to $295,000. This is primarily due to the substantial increase in sales in the higher price ranges.
Part of some of the softer numbers is simply seasonal.
Foreclosures and short sales as a percentage of MLS listing are down (-44%) on average for the market areas studied. The decline has slowed around most of the island. Puna and South Hilo are showing increases in the REO counts. It is important to remember that we are not talking about large numbers: 35 for Puna and 12 for South Hilo.
The data does suggest the number of distressed properties remaining in our MLS inventory does limit the price appreciation rates when comparing them to the CA market, which has done a good job of selling off the distressed inventory. The level of appreciation in our market (currently +11% for residential) lags the California market where most major market areas are showing around 20% year over year appreciation.
Kona Condo inventory remains very tight at around 111 units and prices are up a hefty 26% from the median price of sales in the previous 12 month period.
Probably the most important and telling indicator of the strengthening of the housing market comes from the data in the Kona Land market. After lagging behind in the doldrums for several years, sales have jumped from 60 lots in the previous 12 months to 146 in the last 12 months (+143%). Inventory is on the decline.
Inventory data from Realtor.com indicates West Coast Metros have had slightly higher rate of inventory decline than Kona over the past 2 years.
This information is collected from the Griggs Report by Michael Griggs.
Aloha & a hui hou,
By : "Kona Carla" Womack, R(S)
Office: (800) 845-7559
Cell: (808) 896-6768