Posts Tagged ‘market update’

November 2020 Market Update

Continued Positive News For Sellers!! The Island of Hawaii real estate market continues to churn out sales in lessor numbers and volumes than 2019 but Median Sales Prices have not declined, Year over Year, for the first 11 months of 2020 despite the virus pandemic which is limiting travel by buyers and sellers to Hawaii. This is positive news for sellers!  Buyers have less to choose from and prices have firmed up. Sellers usually start listing their properties when they arrive for the winter season which is forthcoming soon in January. This could increase inventories which could quell the issue of low inventory-maybe not. There are still plenty of buyers seeking quality homes and condominiums as mainland markets have become over valued-see the Corelogic Report. Compared to the 2007 market peak on the Kohala Coast, most resort condominiums are still selling below these values. Adjusted for inflation, they are selling way below these prices. Sellers who choose to sell to the limited number of buyers in the market are not expe...

October 2020 Market Update

Positive News For Sellers!! The Island of Hawaii real estate market continues to churn out sales in lessor numbers and volumes than 2019 but Median Sales Prices have not declined, Year over Year, for the first 9 months of 2020 despite the virus pandemic which is limiting travel to Hawaii. This is positive news for sellers! Sellers who choose to sell to the limited number of buyers in the market are not experiencing any price declines. It is a seller’s market in the resort areas for condominiums +/-$1m. If you do not read past this point in my blog post, look at the Year over Year stats for South Kohala. All classes of Real Estate median sales prices are positive. Check out the South Kohala Land sales stats, they are extremely positive. I have always said to my clients that South and North Kohala land is a bargain and it looks like it is finally due for a positive run. Typically this signals that buyers are not finding value in already constructed residential product and they buy land in order to build and create value for the...

August 2020 Market Update

The Island of Hawaii real estate market continues to churn out sales and listings overall.  Call me for a more in-depth of analysis of your particular property. Summary Report: Island Wide The month of July, 2020 and first 7 months of 2020, year to date figures were generally positive for home and condo values. Condominium median sales prices for the month of July 2020 compared to July 2019 were down just -0.76% for Condos and -5.33% for Homes. For the first 7 months of 2020, Year over year, median sales prices, island wide, were down just -4.41%, for Condos, up +2.64% for Homes and down -21.88 % for Land. North Kona The month of July, 2020 sales volume was positive 21.71% but it was a single month “bright spot” as total sales volume and units declined. The first 7 months of 2020 produced -25.64% less unit sales in all categories and -29.79% less sales volume. As in the South Kohala district reduced inventory and plenty of buyers produced higher median prices for the month of July,2020 and the first 7 months of 2020. S...

Market Conditions July 2020

The May 2020 real estate sales market showed the full effect of the Covid-19 virus pandemic on Hawaii Island real estate sales and the positive June stats show the recovery off the May bottom. 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. All negative for buyer and seller psychology. The June sales show the effects of multiple positive developments including the State’s lifting of local inter-island travel restrictions without quarantine and the announcement that as of August 1, out of State travel would be allowed without 14-day quarantine with a negative Covid-19 test within 72 hours of arrival. These positive developments didn’t change the low inventory numbers but it does have an effect on buyer behavior I believe. I put Kulalani at Mauna Lani into escrow yesterday and had 4 contracts submitted on KaMilo at Mauna Lani 214 all within the last week. None of the contracts were successfully ne...

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 cont...

Market Update 3rd Quarter 2019

Market Update 3rd Quarter 2019 Just the stats..and the stats are all positive! The market remains strong for Hawaii Island through the third quarter 2019. Prices are stabilizing to the 2006-7 peak relative to single family homes and in some cases resort condominiums are selling well below those levels. As an example, the Maile plan in the Villages at Mauna Lani is selling at a 30-40% discount to the 2006 peak with no apparent reason other than it was a large floor plan originally purchased for occasional owner use not primarily for vacation rental. The market has changed since the “great” recession where gross vacation rents are being factored into the ownership “equation” along with purchase price and number of bedrooms. As an example of the current arbitrage, a 3 bedroom Golf Villas unit will vacation rent for $300/night where this large Maile plan may only rent for a 10% premium but cost +30-40% at $1.1m. Additionally, noted market trends indicate declining sales in non resort areas indicating the possible affect...

2018 Real Estate Market Update

I’m frequently asked my opinion of the current real estate market and usually answer back within my response several questions like, “which real estate market on the island would you like information” as all “markets are very particular to their location?” and or “how much time do you have to discuss this topic?”.  We all have a good “rear view mirror” but most people do not have a “crystal ball” to develop future predictions especially for our micro market. Because of this and my love for facts and figures, I often read various publications regarding real estate in general and the Big Island in particular to be able to answer these inquiries.  I often post these to Facebook-sign up here to Follow me.  As us locals like to say-“this isn’t the mainland” and by stating that we mean to say our economics are peculiar and sometimes detached from the other islands and the mainland itself. Please find a few topics of interest to be aware of in 2018!  Underlined topics are linked to more information and...