As you may have read, there is a softening trend in housing across the country as the white hot market that has been occurring for the past two years is slowing. As Steve Harney, CEO of Keeping Current Matters said recently, “In 2008, the plane crashed, but this time we are coming in for a very soft landing.” Despite slowing on the mainland, people are still finding that warm sandy beaches in Hawaii beat the brutal winter weather on the mainland!
LUVA Real Estate agents are very busy showing homes right now and our market remains desirable. How does West Hawaii stack up to the softening in the national market?
Island-wide sales volume from January 2018 to January 2019 shows a 28% decline according to statistics from the Hawaii Information Service. (However, a few sales in the multi-million dollar market can tip the numbers.) In North Kona, sales volume is down 18% for single family homes but UP 69.35% for the condominium market. The median price of a single family home in North Kona has increased 10.32% year over year from $552,500 last year at this time to $609,500 this January, however only 1.45% year to date for condominiums to a current median sales price of $345,000 vs $340,000 last January. Number of sales for single homes in North Kona have increased to 2 from 32 single family homes in 2018 to 34 in 2019. 23 condos were sold in January last year compared to 31 this year for gain of 34% in sales.
South Kohala, which was cooking last January with 20 single family homes sales dropped 40% with 12 home sales last month. South Kohala remained relatively flat for condo sales with 22 sold in 2018 and 24 in 2019. The condominium market is holding strong as retirees and homebuyers who can not afford the price of a median priced single family home purchase available inventory quickly. Snowbirds and potential buyers fleeing the winter storms on the mainland are here looking for avenues to make Hawaii home and well priced homes in both the single family and condo market are finding buyers.
Slower Market is Good For Homebuyers
Over the past few years buyers have been able to get very few concessions from sellers because of the demand in the market. Now, buyers are able to ask for, and get, concessions such as repaired appliances and can negotiate on price.
Affordable Housing Markets Continue to Be Attractive
South Kona, with it’s more affordable single family home market, saw an increase of 10.68% year over year as people are willing to commute longer to be able to afford housing. Communities such as Miloli’i are growing and to the north, Hamakua saw an increase of 64.92% year over year for single family home sales prices. As you can see, as people may be selling their homes on the mainland at what they hoped was the top of the market, they are purchasing real estate on Hawaii Island.
If you would like to meet with one of our team members to discuss buying a home or if you are looking for a great sales strategy, please contact LUVA Real Estate today!