During the three months that the Kīlauea eruption has been going on, people have continued to purchase homes, but not in the force they were out in last year at this time, as some would- be-homeowners took a “wait and see” approach due to the lava activity on the East side of the island.
The housing market in North Kona saw a significant drop in sales volume compared to July 2017, but it only took a 6% price dip. Sales volume dropped 48% for single family homes and 46% for condos in North Kona year over year. The median price for a single-family home in North Kona was $656,000 last year and $616,408 this year. Year to date, the price of single-family homes has risen 10%, but for condos, prices have fallen 13%, according to statistics provided by Hawaii Information Services.
In South Kohala, the number of sales of single-family homes rose 35% from July 2017 to 2018 while dropping 36% for condos. The median price of a single-family home was $505,000 last July and $533,000 in 2018. For condos, the median price was $368,500 in 2017 and $515,000, in July 2018, a 39% increase. Year to date, South Kohala has seen a 10.5% decrease in home prices and for condos, year to date, prices have risen 21.25%.
Island-wide, the number of home sales dropped 15% year over year for single family homes and 39% for condos. Median prices fell .92% for residential homes year over year and .07% for condos. However, from the beginning of 2018 to the end of July, home prices island wide increased 7.21% and condos 13.71% which still shows a high demand for homes on Hawaii Island.
The REALLY good news is that the volcano seems to have taken a break this week with USGS stating the lava eruption at fissure 8 has halted, which means the air quality will be better in West Hawaii, hopefully bringing back those stellar blue ocean/blue sky views for everyone. As the “wait and see” homebuyers keep an eye on what is next for our island, we are still busy showing homes and writing contracts for the people who know we live on an island where nature really is in action and they are happy to be part of it all.
Contact LUVA Real Estate today to place you on a listing alert, so you may view available properties on the market now and those that come on. We are also available to talk to you about numerous factors that our experience living in West Hawaii gives us to make sure you are thrilled with the location you ultimately choose to call home.