July was quite a busy month for condo sales in North Kona with a 108.33% increase year over year from 24 sales in 2016 to 50 sales in 2017 and a 108% increase in sales volume year over year, as well. In South Kohala, the sales volume for condos was up 66.73% over July of 2016. There was a slight uptick in single family homes in North Kona sales year over year, with a 11.3% increase from 44 sales in 2016 and 49 in July according to statistics from Hawaii Information Service, the local MLS service.
Al Gulick, Broker with LUVA Real Estate said about the current market, “My observation is that this summer what we are seeing for lower priced condos, those listed for under $400,000, is that they are selling like hot cakes—many are on the market for just a couple of weeks. Just a few weeks ago I got two good offers on my Mauna Loa Village listing ($299,000, leasehold, and HOA plus lease rent totaling $1516). And I am seeing two to three showings a week on my Alii Lani unit priced at $289,000. These both are most likely going to be owner occupied properties.”
Lance Owens, Realtor with LUVA Real Estate provided these insights in comparing prices today with the top of the market: The median home prices in Kona, year to date, are $626,250. In comparison, the highest year we had for home prices in Kona was in 2006 when prices hit $635,000 for single family homes. The median condo price was up in Kona to $305,000 vs $405,800 at the height of the market in 2006. The median land price in Kona is $325,00o compared to $527,500 in 2006.
Days on Market
Of the 49 homes that sold in North Kona, the average days on the market was 87.
Of the 51 condos that sold in North Kona, the average days on the market was 50.
As you can see from the Altos Research chart, the days on the market is starting to fall as properties leave the market since early spring.
“Bottom line, homes are still moving at a reasonable pace”, stated Owens. “Condos seem to be growing at a slow pace, but are picking up. Long term ownership, or long term rental, seem to be stronger for the condo market than short term vacation rentals.”
National Housing Market:
On the national front, the National Association of Realtor’s chief economist, Lawrence Yun, indicated that there was a dip in contract activity in the prior three months translating into a pullback in existing sales in June. “Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that’s straining their budget,” Yun said. NAR’s economist added, “The good news is that sales are still running slightly above last year’s pace despite these persistent market challenges.”
If you would like to get updated information about housing prices in the neighborhoods you may be seeking a new home, please call us at LUVA Real Estate for additional statistics and insight.