As you know, there has been a flurry of economic upheaval affecting the economy recently. The good news in all of this for buyers is the drop in interest rates, which is giving home buyers more purchasing power and is great news for those of you who have been on the fence waiting for a market shift.
The first two months of 2020 have seen prices and sales with double digit increases year over year, according to statistics from Hawaii Information Services. In February, the median price for a single family home in North Kona was $770,000, an increase of 17.56% from $655,000 year over year. Single family homes sales jumped 19.44% from 36 homes sold in February 2019 to 43 in 2020. For condos in North Kona, sales were up 9.68% from 31 in 2019 to 34 in 2020.
Prices, however, dropped 13% year over year from $375,000 to $323,500. South Kohala, which was on par with North Kona for sales in December and January, saw a dip of 18% for single family home prices in February from $690,000 in 2019 to $565,000 in 2020, with 23 homes sold last year compared to 25 this year, an uptick of 8.7% year over year for sales. Sales volume for North Kona for single family homes was up 57.34% year over year and 65% up year to date while condos were up 10.98% year over year.
Inventory is still tight and there have been instances of multiple offers in the market. Coming in with a strong offer is still a good strategy in this market.
If you are concerned about the long term impact on the housing market, consider this:
Real estate is a long game, the Corona virus will have a short tail.
If you are wondering if you should continue your home search, remember, real estate is a long game. Whether you ascribe to the optimism of a seasonal virus or carry the concern of a worldwide pandemic, this hardship will end. The median duration of homeownership in the United States is 13.3 years. The world and local economies will be back on track before your next move. Don’t put off life entirely for a short term fluctuation.
Please contact LUVA Real Estate if you would like to discuss a sales strategy or if you would like to be put on a listing alert.