The Kona real estate market inventory continued to edge up over the past month. During the month of August, the 12 month moving average and median price also moved upward.
This is the first time since the downturn began in late 2006 that year over year prices have shown an increase. The data for the Kona residential real estate market continues to show a year over year increase in price of 4%. This means that the average and median prices in the past 12 months are higher than they were in the same period from 2010 to 2011.
Kona Real Estate Market at a Glance
The North Kona residential real estate inventory in the price range below $400,000 is at a new low since the overall inventory decline began. As of September 2nd, there were only 40 homes listed for sale in the Multiple Listing Service priced up to $400,000.
This price range up to $400,000 is a Seller’s Market with listing inventory continuing to shrink and the number of homes in escrow is almost at a ratio of 2 for every actively listed home. While many of these escrows are Short Sales, thus artificially inflating the number of escrows, this will continue to be the case until distressed sales return toward normal minimal levels.
All pending sales ratios have improved, some significantly, from last year. This is a clear indicator of improved Supply vs Demand in this current phase of the real estate cycle. It can be seen as an obvious major improvement from the 2008/2009 market when demand was at its weakest, and supply was at its greatest.
Distressed Properties Inventory Continue Slow Decline
The Big Island trend over the past 12 months shows a steady decline in the percentage of distressed properties with the exception of Waikoloa. However, Waikoloa does show a significant decline over the past month. The total numbers of these properties show a significant decline since August 2011.
The number of REO or Short Sale active listings for residential, condominium, and land is approximately one-half of the number from a year ago with the exceptions of Waikoloa and Puna, which are only down 28%. The current island-wide count for REO’s for the lenders tracked is at 88 properties. This compares dramatically to the figure from just one year ago of 236 properties.
While the overall Kona real estate market inventory remains extremely low in the under $400,000 price range, there are some great deals to be found in the $500,000 to $700,000 price range. As well, the $700,000 to $900,000 price range has shown a dramatic upward trend in homes “in escrow” and no longer for sale.
A hui hou!
*Data republished with the courtesy and approval of the Griggs Report.