Kona Kohala Blog

It is a time of change; for the last 10 months we've looked at the market numbers showing predictable and consistent declining median prices and increasing sales activity across the board but now, now all that's changing.  The market is no longer predictable.

For example, we still see increasing numbers of sales in all west Hawaii districts except Single Family Residences (SFR's) in South Kohala where the number is down <10.71%>.  Condo sales there are up 66.67%.  In North Kona, SFR sales are up 56.32% and condos are up 78.46%.  Even South Kona is showing increases of 55.56% for SFR's and in a land with few condos we still see a 100% increase in the number of sales this year going from one sale last year to a whopping 2 sales this year.

The median price for most areas is still on the decline.  A SFR in South Kohala has a median price of $360K which is down <10%> from last year at this time.  Condos in South Kohala show an increase in median price this year of 4.88%, up to $430K.

Median price in North Kona for a SFR is down <8.63%> to $410,250 and condos are down in price to $250K, a <21.75%> drop in value.  In South Kona a SFR in down just <0.83%> to $297,500 while the median price for a condo there is $300K, down <11.76%> this year.

In the recent past, up to July of '09, we saw the number of sales fairly consistent and showing a slight increase month to month.  In July, we suddenly saw those numbers begin to shoot up.  Median price which had been averaging about a <20%> decline month to month compared to the year before was predictable.

Now we're seeing the median price declines starting to slow down with the exception of North Kona condos.  The number of sales continues to skyrocket except in South Kohala SFR's.  Things are changing but it's too early to determine where they're going.

On reason being offered by some is that boomers are showing signs of "Frugality Fatigue."  It's as if they have been pinching pennies for too long and now it's time to enjoy some of the fruits of their many years of labor.  One of the places we're seeing this change is in the homes boomers are buying.  Boomers are moving up the price scale as they choose their retirement home.

An interesting statistic that just came out of an opinion survey conducted by Dell Webb, best known for building communities that are designed for those 55 and older, is how important living near family is.  Webb has been conducting this survey since 1996, 10 surveys in all.  They have found a new propensity for moving and moving far away.

In the past, retirees considered staying near family a relatively high priority when planning where to live.  In the most recent survey, living near grand children was the next to last reason.  A little light bulb went on when reading that number; could it be that grand children aren't what they used to be?  Today's kids; on the whole, I know there are exceptions and plenty of them, tend to be more self centered and isolated with their digital friends, texting, gaming iPods, etc.  Young children today tend to be less respectful of their elders, in some cases rightly so.  Children have no sense of history and don't/can't appreciate what their parents and grand parents have lived through in their lives; we spend way to much time and energy consoling our children and making sure their world is a good place to be.  Maybe that will change along with the other changes coming down the pike as we enter the end of the tolerance age.

A follow up on the blog yesterday about the White House media program.  The official name is the White House Message Machine, it has 69 employees and an annual budget of $4.3 million.  This does not include a huge supporting staff of independent contractors and a nation wide group of input providers.

The administration has begun West Wing Week, a program described by Mordecai Lee, professor of governmental affairs at the University of Wisconsin at Milwaukee as, " . . . all about bypassing the press corps."  News photographers are barred from many events including the recent nuclear arms talks and instead, are provided photos by the White House for publication.

According to Clare Bohan, a Reuters reporter, "If they want to use blogs . . . and other media to do that, that's great.  We just don't want that to substitute for journalist access."  You know something's not right when even the brown nosing, administration supporting mainstream media become upset with White House policies.  What's next, keeping the unions out of the decision making process?  Oh my, more to be revealed.