West Hawaii Real Estate Update July 2019

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The summer doldrums are here and the housing market is cruising along without too many ups and downs.

Overall, LUVA Real Estate Realtors noted seeing homes placed on the market in the spring where the listing prices were elevated due to hopeful sellers. Now some of those homes have been sitting on the market for 60 days and prices are starting to soften.

LUVA Realtor, Linda Swanson, remarked that sellers right now need to be working with a knowledgable agent who has gone on broker tours and has studied the available inventory to get a really good handle on pricing in order to put a realistic listing price on a home when it first hits the market. “If the price is too high, it sits. And when all the local agents and their buyers see it, and realize the price does not fit the value, it sits some more. Then the seller starts to chase down the market with pricing. Then low ball offers come in. Pricing your home right in the beginning is key in this market.”

Overall, the number of sales of single family homes in North Kona almost mirror last year’s numbers at 54 this year vs 56 in 2018 according to data from the Hawaii Information Service. Condominiums were up by three sales year over year, with 42 going into contract in June 2019 vs 39 in June of last year. The median price of a single family home increased 5.2% year over year to $691,945, (However, there may have been a few million dollar home sales that inflated that price a bit.) Year to date, the median home price dropped 2.14%. The median price of condominiums dropped 3% to $339,250 from $350,000 in June 2018, but are up 4% year to date.

Condominium prices are softening in South Kohala with a 1.33% decrease year over year to a median price of $518,000 and single family home prices dropped 6.19% year over year to $522,500.

According to real time data provider, Altos Research, the condominium market in Kailua Kona has started cooling and prices have been flat for several weeks. Inventory has held steady at or around 140. 26% of the condos have had a price decrease. Single family homes in Kona are showing relatively flat prices across the bottom quartile price range. Across all price ranges there is an average of 36% of the homes on the market that have experienced a price decrease and 10% have been relisted.

Looking at the number of homes that have had a price decrease or a relist, it illustrates that these homes in Kona have had to have a price correction in order to compete in this summer marketplace. Buyers should take note of those homes, as opportunities may exist. We encourage you to contact the LUVA Real Estate office and we can provide you with data of the listings that have had recent price drops. If you are considering selling your home, we can help you make a strong showing by giving you expert advice on the dynamics of this market as it pertains to listing price.