The real estate market in West Hawaii for single family homes saw moderate price appreciation in April, while prices for condos continue to remain below last year’s sales prices. The median price for a single family home rose 20% in South Kohala from $525,000 in April 2016 compared with $630,240 in April 2017 according to data from the Hawaii Information Services. South Kohala also saw a 79% increase in sales volume since this time last year. Home prices increased by 12.13% year over year in North Kona from $581,000 to $652,500, but decreased 4.9% in sales volume. South Kona, with limited inventory of homes, saw prices decline 21% year over year from $515,000 in 2016 to $403,500 this year and sales volume drop 13%. Condominiums for North Kona saw a 14% price decrease year over year to $290,000, while South Kohala experienced a 2.75% decrease to $425,000.
According to real time real estate data provider, Altos Research, inventory has been dropping steadily since January, showing that the seasonal trend of buyers coming to the island during the high season and purchasing homes, continues to be the norm in this spring market. The data also shows that days on the market is continuing to climb, as homes that are not in pristine shape continue to sit on the market bringing up the average time on the market while homes in good shape and priced to sell quickly leave the market and for a higher price. (April 2017 Report for Comparison)
We are now entering late spring when the winter tourists and part time residents depart from the island, leaving the housing market with fewer buyers, thus fewer competitors. This is a great time to review the homes that have been on the market for awhile, as sellers may be considering a price drop. For sellers, although mainland buyers are now focusing on their own spring markets, there are still numerous eyeballs on new listings coming in from the mainland as buyers who may have lost out during the winter months continue to look for homes, vacation homes and investment opportunities.
LUVA Real Estate Realtor, Lance Owens adds about the 2017 summer market, “With interest rates as they are now, homes under 500k will continue to get gobbled up.”
As we view the spring real estate market in West Hawaii we see opportunities for buyers in all price categories.
If you are looking to sell your home, LUVA can help you obtain top dollar and help you either move up or down to your next house. Contact LUVA Real Estate at (808) 769-5111