The 2017 West Hawaii real estate market saw a solid increase in the median price of a single family home to over $550k by June, which, compared to historical housing prices over the past decade in the region, came within over 90% of the median price record of $575,000 reached in 2007. Median condo prices stayed under $310,000 in 2017, but the West Hawaii housing market was definitely cooking last year.
“Just like the rest of the country, what we are faced with now, at the beginning of 2018, is a huge problem with inventory”, stated LUVA Real Estate Realtor, Lance Owens. “I have a few clients for condos under $325,000. The total for sale condos in Kailua-Kona, under $325k right now is only 20 units. If you want maintenance fees under $800 a month, knock that number down to 13!” he said.
The single family housing market is tight under $500k with only two available properties in that price range.
“The bottom line, is that there is no affordable housing,” Owens shared.
According to real time data company Altos Research, the Kailua Kona market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Due to a few multi-million dollar homes that have closed escrow recently, the median price has been skewed upward to $999,000.
Altos shows that the median price for a single family 3 bed/2 bath home with 1,500 square feet is $566,500 and for homes that are 2,100 square feet on .05-1 acre of land with 3 bedrooms and 3 bathrooms, the price is $866,500.
January through March are usually some of the busiest months for the local real estate market in West Hawaii. Will sellers use this opportunity of low inventory to place their homes on the market to sell quickly and then repurchase?
Interesting to note, that according to Altos data, the amount of homeowners who relisted their homes to reset the days on the market and perhaps to re-calibrate the price of the home was 16% in October, while only 8% of homeowners are doing that now, as inventory shortage has increased demand for homes.
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