Market Conditions May 2020
The May 2020 real estate sales market showed the full effect of of the Covid-19 virus pandemic on Hawaii island real estate sales. This is primarily because May closed sales were booked in March and April after the shelter in place, 14-day visitor quarantine and Short Term Vacation Rental ban were all in place.
I will continue to monitor the effects and report on the number of units in escrow and closed sales as we go forward and update July 1. Values at this point have remained steady as new listings are few, indicating sellers are reluctant to list in the middle of the current negative quarantine conditions, which is positive for values as few listings keep our available inventory low. The number of Sales have declined faster than the decline in the number of new listings coming on the market so in some areas and classes of real estate, the average sold price has actually increased. As restrictions on Short Term Vacation Rentals, 14-Day Mandatory Quarantine for new arrivals and flights to Hawaii are restored-sales should continue to increase. Kaima’aina traveling inter-island will resume on June 15th. Governor Ige has stated the 14-day quarantine could extend past June 30th which would continue to slow sales.
The chart below includes unit volume statistics for April and May 2020. Highlights of this chart show a -75.61% drop in the number of closed sales in May, 2020 of condominiums in the South Kohala Resort district which includes the Mauna Lani, Mauna Kea and Waikoloa Beach Resort. South Kohala also includes Waikoloa Village and Puako where Single Family Residences are the primary real estate. In the adjacent North Kona district which includes the Kukio, Hualalai and Kohanaiki Resort/Communities, stats show a -64% drop in the number of condominiums sold and -27% less homes in May, 2020. Number of land transactions dropped -22.09% island wide in May, 2020.
See chart below with unit volume details from our Multiple Listing Service:
|Unit Volume Year over Year 2019/2020||Hawaii Island (Overall) April 2020||Hawaii Island (Overall) May 2020||South Kohala Including Resorts-April 2020||South Kohala Including Resorts-May 2020||North Kona including Resorts April 2020||North Kona including Resorts May 2020|
The chart below includes sales volume statistics or the total of all sales in a particular real estate class in a particular area for May, 2020. Highlights of this chart show:
- In the South Kohala Resort district which includes the Mauna Lani, Mauna Kea and Waikoloa Beach Resort a -70.87% drop in sales volume of condominiums in the month of May versus May 2019. South Kohala also includes Waikoloa Village and Puako where Single Family Residences are the primary real estate.
- In the adjacent North Kona district which includes Kukio, Hualalai and the Kohanaiki Resort/Communities, stats show a -57.04% drop in the $$$ volume of condominiums sold and -50.76% less volume of homes closed year over year for the Month of May. Land $$$ volume dropped -61.70% island wide, year over year for the month of May, 2020.
See Chart Below with $$ Volume details from our Multiple Listing Service for April and May 2020:
|May $$$ Volume Year over Year 2019/2020||Hawaii Island (Overall) April 2020||Hawaii Island (Overall) May 2020||South Kohala Including Resorts April 2020||South Kohala Including Resorts May 2020||North Kona including Resorts April 2020||North Kona including Resorts May 2020|
Griggs Report Highlights
2019/2020 Year Over Year Results:
- North Kona Residential Pending Sales down -28.7% in April and down -33% in May.
- Number of Foreclosed properties listed continues to decline.
- 12 month Average and Median Sale Prices are showing a strong year over year increase for 2020 despite current market conditions.
- Condominium Pending Sales down -33% for April and down -29% for May 2020 island wide.
- Condominium Median Sales Price up +5% year over year for 2020.
The Griggs Report is published semi-monthly by Michael B. Griggs, PB, GRI