The headline here could read, “Home sales rise 88% year over year” which most likely would shock you. But they DID rise that much over last year because the numbers from July 2018 reflected what happened to the local real estate market due to the eruption of Kilauea, which started in May of 2018 and ended in August. However, even though home sales were at a relative stand still during the middle of the summer last year, the median price of homes did not dip that significantly, as sellers held their ground hoping for the eruption to end.
Thankfully, the lava stopped flowing on August 3, but it took another three months to get home sale activity back to where it was the year prior in the fall. Good news is that today, the market is healthy and is neither on fire nor is it stagnant.
According to data from the Hawaii Information System, the number of sales in July in North Kona was 49 compared to 26 last year. 37 condominiums were sold in July this year, vs 27 last year. Median price of a single family home was $599,999 in 2019 and $616,408 in 2018. For condos, the price remained the same year over year at $295,000. Interesting to note that even with the eruption from last year, the sales volume of single family homes in North Kona year to date compared to last year is 8.43% lower in 2019 than 2018.
This would show that the market is showing a softening, much like the real estate markets on the mainland. South Kohala, which escaped much of the voggy days that Kailua Kona suffered, sold 29 homes in July vs 27 last year, but sold 14 condos last year to 23 this year, raising it to a 64% increase. Median price of a single family home for the area increased 11.63% year over year to $595,000 from $533,000. Vacant land in the area rose 82% year over year, as well.
Islandwide, the median price of a home is $379,000 with days on the market rising to 84, according to HIS, whereas condos, days on the market dropped to 78 and median price was $325,000. The good news for buyers is that the Federal Reserve dropped the interest rates this month and with a softening of the market, more homes are coming on the market, so older listings are readjusting their prices.
If you would like to receive a listing alert of new homes and ones with recent price adjustments, please call LUVA Real Estate. Also, if you are considering selling your home, we can discuss a timing and pricing strategy so you can get the most for your home.